UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 15295 / March 14, 1997 


SECURITIES AND EXCHANGE COMMISSION V. EMANUEL PINEZ, Civil Action
No. 97-10353 PBS (D. MA.)

     The Securities and Exchange Commission announced today the
filing of an Amended Complaint in its civil action against
Emanuel Pinez ("Pinez"), the former chief executive officer of
Centennial Technologies, Inc. ("Centennial").  The Amended
Complaint adds Lehman Brothers, Inc. ("Lehman") as a relief
defendant.  The Amended Complaint alleges that Lehman is
currently holding the proceeds of Pinez's ill-gotten gains from
his sale and purchase of put and call options contracts on
February 7, 1997.

     In previous court filings in this matter, Lehman has
asserted that it is entitled to the proceeds of the options
transactions because it acquired a lien in Pinez's securities
transactions.  The Commission has sought to freeze Pinez's assets
for the benefit of defrauded investors, and in previous filings
has asserted that Lehman's claim is superseded by the
Commission's claims.  The Commission has asserted that one reason
Lehman's claim to the funds is superseded is because Lehman had
knowledge of suspicious circumstances relating to Pinez's options
trading.  The Amended Complaint alleges as some of those
suspicious circumstances: Pinez instructed Lehman that he wanted
all of the trading completed in one day; Pinez trades were
essentially a large bet on the continued decline in the value of
Centennial's stock; and Lehman had notice, prior to Pinez's
options trading, of concerns and allegations regarding both
Centennial and Pinez, including the fact that on January 31,
1997, the Commission's staff sent an investigative document
request to Lehman's legal department indicating that the staff
was conducting an informal inquiry in the matter of Centennial,
and requesting trading records relating to Pinez's account.

     The Commission's original complaint, which sought a
temporary restraining order, asset freeze and other relief,
alleged that Pinez purchased and sold over 4400 option contracts
at a time when he was aware that Centennial's true financial
condition was substantially worse than had been reported.  The
original complaint was filed in the United States District Court
for the District of Massachusetts on February 14, 1997, and Judge
Patti Sarris granted a temporary restraining order and an asset
freeze the same day (See SEC v. Emanuel Pinez, Lit. Rel. No.
15258, AAER Rel. No. 891).  In a related matter, on March 12,
1997, the U. S. Attorney's Office for the District of
Massachusetts indicted Pinez charging him with five counts of
securities fraud. 

     The Amended Complaint alleges that Pinez's profit from the
sale of call option contracts is approximately $447,500 in
premiums he has received from the call option buyers.  The
Amended Complaint further alleges all but 268 of the put option
contracts have been sold and that Pinez to date has gained
approximately $4.2 million from the purchase of put options.  The



==========================================START OF PAGE 2======

Amended Complaint alleges that Pinez stands to gain more ill-
gotten gains from the exercise of 268 put option contracts on
March 21. 

     The investigation in this matter is continuing.