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SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14709 / November 2, 1995   

SECURITIES AND EXCHANGE COMMISSION v. FRANK DUCA AND 
JAN JUSKO, Civil Action No. 95 Civ 4475 (JS) U.S.D.C., E.D.N.Y.

The Securities and Exchange Commission today initiated
proceedings against Frank Duca ("Duca"), a Long Island securities
broker.  The Commission's Complaint charged Duca with violations
of the antifraud provisions of the federal securities laws for
his misappropriation of customers' funds.  The Commission also
named another Long Island broker as a relief defendant.  Mary Jo
White, the United States Attorney for the Southern District of
New York also filed criminal charges against Duca arising out of
the same conduct. 

Named in the Complaint filed today in the United States District
Court for the Eastern District of New York are:

FRANK DUCA, the former chief executive officer of Island
Securities, Inc. ("Island"), a registered broker-dealer. 

     JAN JUSKO ("Jusko"), a former principal and president of 
Island.

     The Complaint alleges that, from in or about May 1991 to in
or about September 1993, Duca misappropriated more than $535,000
from sixteen of his customers' accounts using an elaborate scheme
involving, among other things, material misrepresentations and
omissions, forged client authorizations, forged endorsement
signatures on mutual fund redemption checks, and fabricated
account statements.  The Complaint also alleges that, as part of
that scheme, Duca falsely told customers that he would invest
their money in tax-free government bonds when, in fact, Duca knew
that he would not be investing their money in any type of
government bond and, instead, used his customers' money for his
own personal benefit.   

     In addition, the Complaint further alleges that Duca
misappropriated money that customers gave him for the purchase of
mutual fund shares and also misappropriated customers' monies
which had been invested in mutual fund shares.  The Complaint
alleges that Duca concealed his misappropriations from his
customers by sending them fabricated account statements.

     The Complaint seeks to permanently enjoin Duca from
violating the antifraud provisions of the federal securities
laws.  In addition, the Complaint seeks disgorgement of all funds
that were misappropriated by Duca and ancillary relief in the
form of civil penalties.  

     The Complaint also names Jusko as a relief defendant and
seeks the return of over $50,000 that he received in funds that
were misappropriated by Duca and to which Jusko was not entitled.

     The United States Attorney's Office for the Southern
District of New York simultaneously filed a felony information
against Duca in the United States District Court for the Southern
District of New York charging him with engaging in a mail fraud
scheme to defraud investors, in violation of Title 18 U.S.C
Section 1341.