SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE No. 15443 / August 15, 1997

     SECURITIES AND EXCHANGE COMMISSION v. WILLIAM F. KANE (IN RE KANE), (United
     States Bankruptcy Court for the District of Massachusetts, Adversary
     Proceeding No. 96-4425-JFQ).

          The Securities and Exchange Commission ("Commission")  announced that
     on, August 11, 1997, in bankruptcy court, it was granted summary judgment
     determining that the disgorgement and prejudgment interest debt owed to the
     Commission by William F. Kane ("Kane") is not dischargeable in bankruptcy
     because it arose out of fraud.  On April 5, 1994, the Commission filed a
     civil enforcement action in federal district court.  On June 6, 1996, the
     Commission obtained a final judgment finding that Kane had violated the
     general antifraud provisions of the federal securities laws and ordering
     Kane to pay $122,670 in disgorgement plus prejudgment interest.  Kane then
     filed for bankruptcy, seeking to have his debt for disgorgement and
     prejudgment interest discharged.

          The U.S. Bankruptcy Court for the District of Massachusetts, agreed
     with the Commission's arguments that Kane was precluded from relitigating
     the district court's findings and that Kane also was bound by certain
     admissions he made in a subsequent criminal proceeding against him.  The
     bankruptcy court further held that those findings and admissions, taken
     together, were sufficient to establish all the elements of "fraud" within
     the meaning of Section 523(a)(2)(A) of the Bankruptcy Code, which excepts
     such debts from bankruptcy discharge.  Because it ruled that Kane's debt
     was not dischargeable due to the fact that it arose from fraud, the
     bankruptcy court determined that it was not necessary to decide the
     Commission's second basis for claiming that Kane's debt was not
     dischargeable -- i.e., Section 523(a)(4) of the Bankruptcy Code, which
     excepts from discharge certain debts which arise from misuse of property by
     fiduciaries.

          For more information, see prior Litigation Release Nos. 14048, 14055,
     14076, 14142, 14235, 14324, 14410, 14703 and 14697.
















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