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                SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 

Litigation Release No. 15211 / January 9, 1997

SECURITIES AND EXCHANGE COMMISSION v. JOSEPH P. GALLUZZI,
Civil Action No. 97-76 (D.N.J.) 

     The Commission announced that it filed a Complaint today
against Joseph P. Galluzzi in the United States District Court
for the District of New Jersey, alleging that he  violated the
antifraud provisions of the Securities Exchange Act of 1934
("Exchange Act") arising from payments of more than $250,000 in
undisclosed kickbacks that Joseph P. Galluzzi received between
April 1987 and December 1993 in connection with issuances of
municipal securities by Essex County, New Jersey ("Essex
County"), the Essex County Improvement Authority ("ECIA") and the
Township of Irvington, New Jersey ("Irvington"). 

Named in the Complaint is:

     Joseph P. Galluzzi, age 64, a resident of Springfield, New
     Jersey.  During the period of the conduct alleged in the
     Complaint, Joseph P. Galluzzi was either a financial
     consultant to the Freeholders of Essex County, a financial
     consultant to Essex County, or the Treasurer of Essex
     County; and was a financial consultant to the Municipal
     Council of Irvington.

The Complaint alleges that:

     In 1986, Joseph P. Galluzzi and George L. Tuttle, Jr.
     ("Tuttle"), on behalf of First Fidelity Securities Group
     ("FFSG"), entered into a kickback arrangement.  Under this
     agreement, Joseph P. Galluzzi would obtain underwriting
     business in Essex County for FFSG and, in return, FFSG would
     pay Joseph P. Galluzzi a kickback based upon the amount of
     bonds issued by Essex County that FFSG underwrote.  This
     kickback agreement was not disclosed.

     Between April 1987 and February 1991, FFSG paid Joseph P.
     Galluzzi over $145,000 in kickbacks in connection with Essex
     County's March 1987, January 1989 and June 1989 Offerings of
     debt.  Joseph P. Galluzzi concealed the kickbacks by
     submitting false invoices to FFSG for services allegedly
     rendered on unrelated bond transactions outside of Essex
     County, and by denying he had a financial relationship with
     FFSG.

     In 1991, Tuttle expressed to Joseph P. Galluzzi FFSG's
     interest in being the lead underwriter for Irvington's
     fiscal year bond anticipation notes (the "Irvington BANs")
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     and Irvington's fiscal year adjustment bonds (the "Irvington
     FYABs") (collectively, the "Irvington Offerings").  Tuttle,
     on behalf of FFSG, also agreed to pay Joseph P. Galluzzi for
     his help in having FFSG selected as the lead underwriter on
     the Irvington Offerings.  Again, this kickback agreement was
     not disclosed.

     In August 1991, Irvington issued the Irvington BANs, and in
     February 1992, Irvington issued the Irvington FYABs.  On
     both of those issues, FFSG was the lead underwriter.  At the
     time of the Irvington Offerings, Joseph P. Galluzzi was the
     budget and financial consultant to the Municipal Council of
     Irvington.  FFSG paid Joseph P. Galluzzi $31,000 in
     kickbacks in connection with the Irvington Offerings. 

     Joseph P. Galluzzi also received from A.G. Edwards & Sons,
     Inc. ("AGE") undisclosed kickbacks relating to the ECIA's
     August 1990 $65 million bond issue (the "ECIA Offering"). 
     Joseph P. Galluzzi was the financial consultant to Essex
     County, on whose behalf the ECIA Offering was made.  Between
     March 1991 and December 1993, AGE paid Joseph P. Galluzzi at
     least $82,085.82 under a sham finder's agreement contract.

     As a result of the foregoing, the Commission alleges that
Joseph P. Galluzzi violated Section 10(b) of the Exchange Act and
Rule 10b-5. The Commission seeks a final judgment permanently
enjoining Joseph P. Galluzzi from future violations of Section
10(b) of the Exchange Act and Rule 10b-5.  In addition, the
Commission seeks disgorgement of the kickbacks he received and
prejudgment interest.

     FFSG previously settled an administrative proceeding arising
out of the same kickback scheme, in which it, without admitting
or denying the findings, consented to the issuance of an order
finding that FFSG wilfully violated Section 17(a) of the
Securities Act of 1933, and Sections 10(b) and 15B(c)(1) of the
Exchange Act and Rule 10b-5, and rules G-8, G-17 and G-20 of the
Municipal Securities Rulemaking Board, and requiring FFSG to pay
disgorgement and prejudgment interest in the amount of
$1,793,309.43 and pay a $500,000 penalty.  See In the Matter of
First Fidelity Securities Group, Exchange Act Release No. 36694
(Jan. 9, 1996), 61 SEC Docket 68 (Feb. 6, 1996).

     The Commission's investigation is continuing.