SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 15310 / March 31, 1997 

SEC v. Robert D. Gersh, et al., Civil Action No. 95-12580 (RCL)
(D. Massachusetts, filed November 29, 1995).
 
     The Commission announced that, on March 20, 1997, the
Honorable Reginald C. Lindsay of the U.S. District Court for the
District of Massachusetts enjoined Robert D. Gersh ("Gersh"),
Boston Municipal Securities, Inc. ("BMS") and Devonshire Escrow
and Transfer Corp. ("Devonshire") from further violations of
certain antifraud provisions of the securities laws.  The
complaint, filed on November 29, 1995, alleged that the
defendants had conducted a fraudulent offering of $14 million in
securities in the form of certificates of participation ("COPs").

Gersh, BMS and Devonshire consented to the injunctive orders
without admitting or denying the complaint's allegations.  Gersh
was also ordered to disgorge $7,451,935, plus prejudgment
interest thereon, provided, however, that payment of $5,949,185
of such amount, plus the prejudgment interest, was waived based
on his demonstrated inability to pay.

     The complaint alleged that from early 1990 to the present,
Defendant Gersh and two of his wholly-owned corporate entities,
Defendants BMS and Devonshire, offered and sold COPs in 34
securities offerings which raised approximately $14 million from
investors in at least six states.  In connection with the offer
and sale of these securities, the complaint alleged that the
defendants made numerous misrepresentations and omissions of
material facts and misappropriated over $7 million in investor
funds.  

     The complaint alleged violations of the antifraud provisions
of Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder and Section 17(a) of the Securities
Act of 1933 and sought a temporary restraining order, preliminary
and permanent injunctions, disgorgement, civil monetary penalties
and an asset freeze and other equitable relief.  On November 30,
1995, the Court issued a temporary restraining order and asset
freeze against the defendants.  In addition, on December 11,
1995, the Court granted the Commission's motion for appointment
of a receiver to take control of the assets of the corporate and
relief defendants, and those assets are being operated by the
receiver for the benefit of investors.  On January 12, 1996,
after a hearing, Judge Lindsay granted the Commission's request
for a preliminary injunction against the defendants.

(For further information, See Litigation Release Nos. 14742 and
14785)