UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15563 / November 18, 1997

     Securities & Exchange Commission v. John S. Nadolski 
     (United States District Court for the Northern District of New York, Civil
     Action No. 95-1154)

          The Securities and Exchange Commission announced that on October 28,
     1997, the Honorable Frederick J. Scullin, Jr. of the United States District
     Court for the Northern District of New York entered a Final Judgment and
     Order against John S. Nadolski, the former president of Marietta
     Corporation, a manufacturer of guest amenity products headquartered in
     Cortland, New York.  The Final Judgment permanently enjoins violations of
     Section 17(a) of the Securities Act of 1933, and Section 10(b) of the
     Securities Exchange Act of 1934, and Rule 10b-5 thereunder; (2) bars him
     from serving as an officer or director of any public company for a period
     of five years; and (3) requires him to pay disgorgement of $300,000 and
     prejudgment interest of $100,000.  Under the terms of settlement,  Nadolski
     would pay $300,000 upon entry of the Final Judgment and be required to pay
     the remaining $100,000 through the sale of assets.  In the event Nadolski
     is unsuccessful in selling his assets, a court-appointed receiver would be
     employed to sell those assets at the best available price.  Nadolski
     consented to this relief, without admitting or denying the allegations in
     the Commission's complaint. 
       
          The Commission originally filed this action against Nadolski on August
     18, 1995, alleging multiple violations of the federal securities laws
     including insider trading.  The complaint alleged that between 1989 and
     1991 Nadolski engaged in a fraudulent scheme to misrepresent Marietta's
     financial condition by causing false accounting entries to be made in its
     financial books and records, overstating sales and understating expenses. 
     These changes dramatically increased the net income Marietta reported in
     public filings with the Commission.  In its annual report on Form 10-K for
     the fiscal year ended September 30, 1989, Marietta overstated its net
     income by $1,216,368, an overstatement of 70 percent.  

          The complaint further alleged that in November 1989, Nadolski sold
     100,000 shares of Marietta stock for $1.92 million while in possession of
     inside information about Marietta's financial condition.  Specifically, the
     complaint alleged that Nadolski knew that information concerning Marietta's
     sales, profits and financial condition had been falsely reported to the
     public, and that the fact and extent of the falsification had not been
     disclosed to the public.  








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