SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15459 / August 26, 1997

     SEC v. Biltmore Securities, Inc., et al., No. 93-6837 (S.D. Fla.)

          The Commission announced that on August 11, 1997, the Honorable Jose
     Gonzalez, United States District Judge for the Southern District of
     Florida, entered a final judgment ("final judgment"), by consent, against
     registered representatives Robert Alan Denton ("Denton"), Jeffrey Peter
     Morrison ("Morrison"), Lee Michael Rough ("Rough"), Marc David Siden
     ("Siden") and Kenneth Thomas Tripoli ("Tripoli") (collectively
     "Defendants"), all currently or formerly associated with registered broker-
     dealer Biltmore Securities, Inc. ("Biltmore").

          The final judgment enjoins Tripoli from future violations of the anti-
     fraud provisions of the securities laws, and orders all five Defendants
     jointly and severally to disgorge approximately $572,000, representing
     commissions received in connection with Defendants' alleged violative
     conduct, and to pay prejudgment interest thereon totalling approximately
     $85,000.  The final judgment also orders the Defendants individually to pay
     civil money penalties as follows: (a) Tripoli to pay $100,000; (b) Rough to
     pay $75,000; (c) Denton to pay $75,000; (d) Morrison to pay $75,000; (e)
     Siden to pay $50,000.

          The Commission's amended complaint, filed in October 1994, alleged
     violations of Section 17(a) of the Securities Act of 1933 ("Securities
     Act"), and Sections 10(b) and 15(c) of the Securities Exchange Act of 1934
     ("Exchange Act"), and Rules 10b-5, 10b-6 and 15c1-2, thereunder. 
     Specifically, the Commission alleged that the Defendants were violating the
     anti-fraud provisions by (a) making price predictions without a reasonable
     basis with regard to certain securities, (b) recommending the purchase of
     those securities while omitting to disclose material negative information,
     and (c) effecting unauthorized transactions in the accounts of certain of
     Biltmore's customers.  The amended complaint also alleged that Defendants
     attempted to induce and did induce other persons to purchase securities in
     initial public offerings before Defendants completed their participation in
     such distributions.
      
          In a related proceeding, the Commission announced that it had
     instituted and simultaneously settled public administrative and cease-and-
     desist proceedings against the five registered representatives.  The Order
     Instituting Public Administrative and Cease-and-Desist Proceedings, Making
     Findings and Imposing Remedial Sanctions and Cease-and-Desist Order
     ("Order") found that all five
     willfully violated Section 17(a) of the Securities Act and Section 10(b) of
     the Exchange Act, and Rules 10b-5 and 10b-6 thereunder, as well as aided
     and abetted violations by Biltmore of Section 15(c) of the Exchange Act and
     Rule 15c1-2, thereunder.  Pursuant to their Offers of Settlement, each
     representative agreed to be barred or 


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     suspended as follows: (a) Tripoli to be barred with no right to reapply;
     (b) Rough to be barred provided that he may reapply after 3 years; (c)
     Denton to be barred provided that he may reapply after 2.5 years; (d)
     Morrison to be barred provided that he may reapply after 2 years; (e) Siden
     to be suspended for twelve months.  All (except Tripoli, who is subject to
     the civil injunction described above) also consented to cease-and-desist
     orders.












































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