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                SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15338 / April 17, 1997

S.E.C. v. Global Financial Traders, Ltd., et al., Docket No. 97
Civ 1753 (DC), (USDC SDNY).

     On April 11, 1997, the Honorable Denny Chin, U.S. District
Judge, Southern District of New York, ordered the entry of a
preliminary injunction against further violations of Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder, and Rules 101 and 102 of Regulation M by Global
Financial Traders, Ltd. ("Global"), BGSG Holding Corp. ("BGSG"),
Michael R. Reilly ("Reilly") and John J. Kenna ("Kenna").  Those
defendants consented to the preliminary injunction without
admitting or denying the allegations of the Complaint, and the
asset freeze issued against them on March 13, 1997, continues in
effect.  Defendants Vincent J. Iovine ("Iovine") and David S.
Coleman ("Coleman") consented to continuation of the Temporary
Restraining Order issued against them on March 13, 1997.

     The Commission's Complaint, filed on March 13, 1997, alleged
that Reilly and Kenna were engaged in a scheme in which they had
(1) obtained a large undisclosed position in the stock of
American Image Motor Company, a security traded on the OTC
Bulletin Board; (2) used a concerted telemarketing campaign by
personnel at Global, which is controlled by Reilly and Kenna, and
recommendations in a newsletter published by Global to promote
the stock, making material misrepresentations concerning the
market for American Image stock and failing to disclose Reilly
and Kenna's interest in the security; (3) sold large amounts of
American Image stock from accounts which they controlled; and (4)
maintained the market price for American Image stock through
purchases of the stock and by directing a trader at a registered
broker-dealer to raise or lower quotations on American Image
stock.  The Complaint further alleged that Iovine and Coleman,
both traders at registered broker-dealers, had bid for and
purchased American Image stock in order to maintain the market
for the security within a desired trading range.  It was alleged
that Global, BGSG, Reilly, and Kenna had realized over $5.8
million in net profits from trades in American Image stock.
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                       NEWS DIGEST SUMMARY

PRELIMINARY INJUNCTION ISSUED AGAINST GLOBAL FINANCIAL TRADERS,
LTD., BGSG HOLDING CORP., MICHAEL R. REILLY, AND JOHN J. KENNA.

     The Commission announced that on April 11, a preliminary

injunction and continuation of an asset freeze had been ordered

against Global Financial Traders, Ltd. (Global), BGSG Holding

Corp. (BGSG), Michael R. Reilly (Reilly), and John J. Kenna

(Kenna).  The defendants were enjoined from further violations of

Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and

Rules 101 and 102 of Regulation M thereunder.  Two other

defendants, Vincent J. Iovine (Iovine) and David S. Coleman

(Coleman), consented to continuation of a TRO issued on March 13.

     The Commission's Complaint alleged that Reilly and Kenna

were engaged in sales of large blocks of stock using a

telemarketing campaign by personnel at Global, which Reilly and

Kenna control, and recommendations in a newsletter published by

Global, making misrepresentations concerning the market for the

stock, and failing to disclose Reilly and Kenna's interest in the

security and their stock sales.  It was alleged that Reilly,

Kenna, Iovine, and Coleman had maintained the market price within

a desired trading range by bidding for and purchasing the stock,

and that Global, BGSG, Reilly, and Kenna had realized over $5.8

million in net profits from their stock sales.  [S.E.C. v. Global

Financial Traders, Ltd., et al., 97 Civ 1753 (DC) (USDC SDNY)]   

Staff Attorney:     Barbara P. Downey
                    (801) 524-5796
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