SECURITIES AND EXCHANGE COMMISSION
                         Washington D.C.

LITIGATION RELEASE NO. 15265 / February 27, 1997

SECURITIES AND EXCHANGE COMMISSION v. ROSEANN MARTUCCI,
JAY R. HARTMAN, AND GARR MANAGEMENT SERVICES, INC., U.S. District
Court for the Southern District of New York, 96 Civ. 3030 (DLC)
(S.D.N.Y. 1996) 

     On February 20, 1997, the Honorable Denise L. Cote, United
States District Court Judge for the Southern District of New
York, entered Final Judgments of Permanent Injunction and Other
Relief (the "Final Judgments"), by consent , against defendants
Roseann Martucci ("Martucci"), Jay R. Hartman ("Hartman") and
Garr Management Services, Inc ("Garr Management Services"), a
company owned in part by Martucci and Hartman.  The Final
Judgments enjoin Martucci, Hartman and Garr Management Services
from violations of Sections 10(b) and 14(e) of the Securities
Exchange Act of 1934 and Rules 10b-5 and 14e-3 promulgated
thereunder.  

     The Final Judgments also order Martucci to pay disgorgement
of $15,180.64, plus prejudgment interest in the amount of
$5,469.68 and a $7,590.32 civil monetary penalty pursuant to the
Insider Trading and Securities Fraud Enforcement Act ("ITSFEA");
Hartman to pay disgorgement of $11,512.04, plus prejudgment
interest in the amount of $4,147.85 and a $11,512.04 civil
monetary penalty pursuant to ITSFEA; and Garr Management Services
to pay disgorgement of $38,430.90, plus prejudgment interest in
the amount of $13,846.85 and a $38,430.90 civil monetary penalty
pursuant to ITSFEA. 

     According to the Commission's complaint, between August and
October 1992, Sheri I. Kleinbaum, by virtue of her employment
with a law firm, learned material nonpublic information relating
to the identity of two acquisition targets of clients of the
firm.  Shortly after learning this information, Sheri Kleinbaum
communicated it to her father and step-mother.  Sheri Kleinbaum's
step-mother then communicated material nonpublic information
about the companies to Martucci, who in turn tipped business
associates, Hartman and the late Raymond G. Jerro, as well as a
close personal friend.  Martucci, Hartman and Garr Management
Services subsequently purchased the common stock of the targets
prior to the public announcements that each was to be acquired. 
See Litigation Release No. 14890 (April 25, 1996).  

     The Commission previously instituted and settled an action
against Sheri I. Kleinbaum, her stepmother and her father.  SEC
v. Sheri I. Kleinbaum, et al., 95 Civ. 1963 (PKL) (S.D.N.Y.
1995).  See Litigation Release No. 14447 (March 23, 1995).