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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO.  15223 / January 22, 1997

ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 872 / January 22, 1997

SECURITIES AND EXCHANGE COMMISSION v. JACOB ADONI AND VICTOR
DOUENIAS, Civil Action No. 97-350 (D.N.J.) (filed January 21,
1997)

     On January 21, 1997, the Commission filed a complaint in the
United States District Court for the District of New Jersey
against Jacob Adoni ("Adoni"), formerly president, chief
executive officer, and a director of The Simone Group, Inc.
("Simone"), and Victor Douenias ("Douenias"), the former
operations manager at Simone.  The complaint alleges that
beginning in December 1992, Douenias, with Adoni's knowledge,
engaged in the prebilling of invoices for goods which had not
been shipped and used the customer sales invoices for the
prebilled sales to obtain funds from one of the company's
lenders.  The complaint alleges that as a result of this conduct,
Simone's books and records falsely reflected approximately $1.2
million of revenue for the fiscal year ended January 31, 1993,
contrary to the requirements of Generally Accepted Accounting
Principles and the company's accounting policies.  The complaint
further alleges that Simone submitted the materially false
accounting records and financial statements to its independent
auditors in connection with its year end audit.  

     The complaint seeks a permanent injunction and a civil
penalty against Douenias for committing fraud, in violation of
Exchange Act Section 10(b) and Rule 10b-5, and for falsifying
Simone's books and records, in violation of Exchange Act Rule
13b2-1.  The complaint seeks a permanent injunction and a civil
penalty against Adoni for circumventing internal accounting
controls, directly or indirectly falsifying books and records,
and making or causing others to make false statements to
auditors, in violation of Exchange Act Section 13(b)(5) and Rules
13b2-1 and 13b2-2.  Without admitting or denying the allegations
in the complaint, Adoni consented to the entry of a final
judgment permanently enjoining him from violating these
provisions, and ordering him to pay a $37,500 civil penalty.