SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

     Litigation Release No. 15556 / November 12, 1997

     Accounting and Auditing Enforcement 
     Release No. 985 / November 12, 1997

     SEC v. Peter R. DeGeorge, Civil Action No. 3:97 CV 2382 (D. Conn. November
     12, 1997)

          The Securities and Exchange Commission announced today that it filed
     an action seeking a permanent injunction and monetary relief in the U.S.
     District Court for the District of Connecticut, against Peter R. DeGeorge,
     chief executive officer, chairman of the board and controlling stockholder
     of DeGeorge Financial Corporation.  The Commission's Complaint alleges that
     DeGeorge repeatedly failed to disclose a series of related party
     transactions in DeGeorge Financials' filings with the Commission from 1992
     through 1995.

          The Complaint specifically alleges that Peter DeGeorge used at least
     $680,000 of DeGeorge Financial's money for personal expenses, specifically,
     to fund a private business venture, a triathlete racing team and his
     personal legal expenses.  DeGeorge also directed DeGeorge Financial's
     employees to assist in his personal endeavors, specifically, to manage and
     operate his private business, to monitor construction of his home and to
     sell homes on favorable terms to his relatives.  

          According to the Complaint, DeGeorge Financial failed to disclose, or
     made false and misleading statements concerning, these material related
     transactions in its filings with the Commission from 1992 through 1995. 
     The Complaint further alleges that Peter DeGeorge reviewed and approved
     these filings with the Commission and knew, or was reckless in not knowing,
     that these filings made materially false and misleading statements or
     contained material omissions.  In addition, the Complaint alleges that
     Peter DeGeorge signed a management representation letter to DeGeorge
     Financial's independent auditors falsely stating that DeGeorge Financial
     had fully and accurately disclosed all material related party transactions.


          DeGeorge has offered to consent to the entry of a Final Judgment
     against him, without admitting or denying the allegations in the Complaint,
     which enjoins him from violating Section 17(a) of the Securities Act of
     1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5,
     13b2-1 and 13b2-2 thereunder, and orders him to pay approximately $300,000,
     representing $204,000 in disgorgement, $44,000 in prejudgment interest and
     $50,000 in civil penalties.

          In a separate administrative proceeding, the Commission ordered
     DeGeorge Financial to cease and desist from violating the antifraud and
     record keeping provisions of the federal securities laws, specifically,
     Sections 13(a), 13(b)(2)(A), 13(b)(2)(B) and 14(a) of the Exchange Act, and
     Rules 12b-20, 13a-1, 13a-13 and 14a-9 thereunder.  Without admitting or
     denying the allegations, DeGeorge Financial consented to entry of the cease







     and desist order, and agreed to retain an independent consultant to review
     the company's policies and procedures concerning related party transactions
     and to implement the consultant's recommendations.


















































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