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             U.S. Securities and Exchange Commission


Litigation Release No. 15234 / January 30, 1997

SECURITIES AND EXCHANGE COMMISSION V. MARTIN KAIDEN AND THE
MARTIN KAIDEN COMPANY 97 Civ.0641 (DC)

NEW YORK -- The Securities and Exchange Commission announced that
it filed today a Complaint in federal court in Manhattan alleging
that a registered broker-dealer and its chairman fraudulently
offered fictious "prime bank" securities to a large institutional
investor.  Named in the Commission's Complaint were:

     Martin Kaiden ("Kaiden") is 67 years old and resides in
Scarsdale, New York.  During the time of the events alleged in
the Complaint, he was chairman, president and sole shareholder of
The Martin Kaiden Company, Inc.

     The Martin Kaiden Company, Inc ("Company") is a New York
corporation with offices in Mamaroneck, New York.  During the
time of the events alleged in the Complaint, the Company was
registered with the Commission as a broker-dealer.

     The Complaint alleges that Kaiden and the Company falsely
represented to John Hancock Mutual Life Insurance Company ("John
Hancock") that Kaiden, through the Company, could arrange for the
purchase and sale of so-called "prime bank" securities.  Kaiden
and the Company falsely claimed that these securities could be
purchased at a discount and then be sold in a secondary market,
and the defendants guaranteed John Hancock an extraordinary
return with virtually no risk.  In fact, according to the
Complaint, the defendants could not supply the instruments
offered because such securities do not exist.  As such, there is
no secondary market for, or guaranteed return on, the instruments
described by Kaiden and the Company.    

     In its Complaint, the Commission alleges that Kaiden and the
Company violated Sections 17(a)(1) and 17(a)(3) of the Securities
Act of 1933.  The Commission also alleges that the Company
violated Section 15(c)(1)(A) of the Securities Exchange Act of
1934 and Rule 15c1-2 thereunder, and that Kaiden is liable for
these violations as a controlling person of the Company.  The
Commission seeks a permanent injunction and civil monetary
penalties against both Kaiden and the Company.  The litigation is
pending.