SECURITIES AND EXCHANGE COMMISSION
                                BOSTON, MASSACHUSETTS
      

     LITIGATION RELEASE NO. 15513 / September 26, 1997

     SECURITIES AND EXCHANGE COMMISSION V. CARLO D'ALELIO (United States
     District Court for the District of Massachusetts, C.A. No. 97cv12160-JLT)

          The Securities and Exchange Commission ("Commission") announced that
     on  September 26, 1997, it filed a civil injunctive action against Carlo
     D'Alelio ("D'Alelio") charging him with fraud in connection with his use of
     clients' funds.  The Complaint alleges that, between November 1992 and
     December 1993, the Defendant, a resident of Gloucester, Massachusetts, and
     a registered investment adviser, misappropriated from three clients more
     than $50,000 intended for investment in securities and used the funds to
     pay his own personal expenses.  The action was filed in the United States
     District Court for the District of Massachusetts.     

          D'Alelio is a recidivist securities violator.  In October 1992, he was
     charged by the Massachusetts Securities Division ("Securities Division")
     with engaging in dishonest and unethical practices in the securities
     business, based upon complaints by previous customers that he had effected
     unauthorized trades in their accounts and had misappropriated their funds. 
     In May 1994, after a hearing on those charges, D'Alelio was found liable. 
     He was fined, compelled to disgorge profits and his registration as a
     securities agent in Massachusetts was revoked.  According to the
     Commission's Complaint, the Defendant made material omissions in his
     application for investment adviser registration in December 1992 concerning
     the disciplinary proceedings then pending against him.  The Complaint
     further alleges that the Defendant failed to amend his registration to
     disclose the orders entered against him by the Securities Division and by
     the National Association of Securities Dealers, Inc. and that he failed to
     file annual reports with the Commission.

          The Commission alleges that the Defendant violated Section 17(a) of
     the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of
     1934 and Rule 10b-5 thereunder, and Sections 204, 206(1), 206(2), 206(4)
     and 207 of the Investment Advisers Act of 1940 and Rules 204-1(b), 204-
     1(c), 206(4)-2 and 206(4)-4 thereunder.  The Complaint seeks a permanent
     injunction, disgorgement and a civil money penalty.













                              ======END OF PAGE 1======