SECURITIES AND EXCHANGE COMMISSION


     LITIGATION RELEASE NO.  15673 / March 17, 1998 

     U.S. v. AUTUORI, No. 3:96CR161-ALL (D. Conn. September 10, 1996).

          The Commission and the United States Attorney's Office for the
     District of Connecticut announced that, on March 12, Edmund M. Autuori
     ("Autuori"), a CPA and former partner of Arthur Andersen & Co., was
     convicted by a federal jury on 16 fraud-related counts arising from his
     work for Colonial Realty Company ("Colonial"), a former real estate
     syndicator.  The jury found that Autuori knowingly assisted Colonial's
     principals in marketing investments, including the offering of 1200 limited
     partnership units in the Colonial Constitution Limited Partnership
     ("CCLP").  While engaged in these marketing efforts, Autuori knew that the
     investments offered by Colonial could not realize the promised returns. 
     Autuori will be sentenced on May 28.  Each of the counts carries a maximum
     penalty of five years and a $250,000 fine.

          On March 9, 1995, the Commission filed a complaint against Autuori,
     Jonathan N. Googel, Benjamin J. Sisti, William Candelori, Kevin P. Sisti,
     Peter J. Curley and Kenneth A. Zak (the "Defendants"), alleging violations
     of several antifraud and securities registration provisions of the federal
     securities laws in connection with Colonial's offering of CCLP units. 
     During the offering period, CCLP interests totaling more than $30 million
     were purchased by over 700 investors residing in 28 states and the District
     of Columbia.  Autuori is the sole remaining defendant in the Commission's
     civil action, which was stayed pending resolution of the criminal trial.

          Colonial, located in West Hartford, Connecticut, was a syndicator of
     real estate limited partnerships.  According to the complaint, Colonial
     salespeople, with the knowledge, approval and/or participation of the
     Defendants, solicited investors with numerous false and misleading
     statements, and utilized high-pressure sales tactics, to encourage them to
     invest.  The Defendants knew, or were reckless in not knowing, that
     Colonial's offering materials contained material misstatements and
     omissions regarding the revenues, operations, financial reserves, rental
     income, and cash flow of Constitution Plaza, the asset underlying CCLP. 
     Although the CCLP offering purportedly was a private placement to
     accredited investors, Colonial sold limited partnership units to far more
     than the 35 nonaccredited investors permitted by Commission regulations.

          The complaint also alleged that, with the knowledge, approval and/or
     participation of various Defendants:  Colonial concealed its financial
     problems from investors as the CCLP offering progressed; Googel, B. Sisti
     and Candelori signed false certifications in connection with the sale of
     investor notes to financial institutions; and Colonial failed to disclose
     that distributions to investors in its partnerships were funded frequently
     by "loans" from other Colonial partnerships.  According to the Complaint,
     Autuori participated in sales seminars and other meetings with prospective
     investors, assuring them that Constitution Plaza would generate the
     revenues projected in CCLP's offering memorandum, and assisted in the
     preparation of materially misleading sales literature.  In September 1990,







     shortly after the CCLP offering was suspended, Colonial was forced into
     bankruptcy and CCLP limited partners subsequently lost their entire
     investment.

     (For further information, See Litigation Release Nos. 14432, 14448, 14612,
     14723 and 14916) 















































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