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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15204 / January 2, 1997

SECURITIES AND EXCHANGE COMMISSION v. RONALD C. BLACK, RUSSELL W.
BROWN AND MAY B. OWENS, 95 Civ. 8766 (MP) (S.D.N.Y.)

The Commission announced today that, on December 30, 1996, the
United States District Court for the Southern District of New
York, entered final judgments by default against defendant Ronald
C. Black ("Black") and relief defendant May B. Owens ("Owens"),
his wife.  Under the judgments, the court:  (1) permanently
enjoined Black from committing securities fraud; and (2) ordered
Black and Owens, jointly and severally, to pay disgorgement of
$25,000 and to pay prejudgment interest of $7,817.98.  

In the complaint, filed on October 16, 1995, the Commission
alleged that in July 1993, Black, in concert with defendant
Russell W. Brown ("Brown"), then a corrections officer at the
prison where Black was imprisoned at the time, defrauded Nomura
Securities International, Inc. ("Nomura").  Specifically, Black,
using a cellular telephone that Brown had provided, called
Nomura's New York City offices, opened a securities account under
a fictitious corporate name, and placed orders to purchase
securities.  In furtherance of this scheme to defraud, Black made
material misrepresentations to Nomura about his ability to pay
for these securities.  In addition, Black, Brown, or someone
working in concert with them, telephoned Nomura, posed as an
official of Nomura's bank and claimed falsely that Black had
transferred funds to Nomura's account for the benefit of Black. 
Black then instructed Nomura to wire a portion of those funds to
Brown and Owens.  After Nomura initiated the wire transfers,
Nomura learned that its bank had not received any funds from
Black.  Although Nomura was able to stop the transfer to Brown
before Brown received the money, Owens received the $25,000 that
had been transferred to her. 

On May 9, 1996, the Court entered a final judgment by consent
against Brown, pursuant to which Brown -- who consented to the
entry of the judgment without admitting or denying the
allegations in the complaint -- was enjoined permanently from
violating the antifraud provisions, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5, and ordered to
pay a total of $6,154.80 in disgorgement and prejudgment
interest.  Payment of the disgorgement and prejudgment interest
was waived, and the court did not impose civil penalties, based
on Brown's demonstrated inability to pay.

On September 24, 1996, Black was indicted by a federal grand jury
in Denver, Colorado on nine counts of wire fraud and aiding and
abetting in violation of 18 U.S.C.  1343 and 2, based on some
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of the same conduct alleged in the Commission's complaint. 
United States v. Ronald C. Black, Docket No. 96-CR-380Z.

For further information, see Litigation Releases Nos. 14691 (Oct.
16, 1995) and 14929 (June 3, 1996).