UNITED STATES OF AMERICA
                            Before the
                SECURITIES AND EXCHANGE COMMISSION


Securities Exchange Act of 1934
Release No. 38496 / April 10, 1997

Administrative Proceedings
File No. 3 - 9293

______________________________
                              :
                              :    ORDER INSTITUTING PUBLIC
In the Matter of              :    ADMINISTRATIVE PROCEEDING
                              :    PURSUANT TO SECTIONS 15(b)
JANAK C. PATEL,               :    AND 19(h) OF THE SECURITIES
                              :    EXCHANGE ACT OF 1934,
               Respondent.    :    MAKING FINDINGS, AND
                              :    IMPOSING REMEDIAL SANCTION 
                              :
______________________________:

                                I.

     The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest that a public
administrative proceeding pursuant to Sections 15(b) and 19(h) of
the Securities Exchange Act of 1934 ("Exchange Act") be, and
hereby is, instituted against respondent Janak C. Patel
("Patel").

                               II.

     In anticipation of the institution of this proceeding, Patel
has submitted an Offer of Settlement ("Offer"), which the
Commission has determined is in the public interest to accept. 
Solely for the purpose of this proceeding, and any other
proceeding brought by or on behalf of the Commission or in which
the Commission is a party, and without admitting or denying the
findings set forth below, except admitting the entry of the
injunction and a conviction for mail fraud, Patel consents to the
issuance of this Order, and the findings and remedial sanction
set forth below.

                               III.

     On the basis of this Order and the Offer, the Commission
finds that:

     A.   Patel, age 39, was a registered representative
associated with Chatfield Dean, Inc., a broker-dealer registered
with the Commission, from March 3, to July 7, 1992.
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     B.   Royce Laboratories, Inc. ("Royce") is a corporation
organized under the laws of the State of Florida, with principal
offices located in Miami, Florida.  Royce is engaged in the
development, manufacture and marketing of prescription and over-
the-counter generic pharmaceuticals.  Royce's securities are
registered with the Commission pursuant to Section 12(g) of the
Exchange Act, and its common stock, warrants and units are quoted
on the National Association of Securities Dealers Automated
Quotation System, non-National Market System.

     C.   On September 10, 1991, while in possession of material,
nonpublic information concerning Royce, Patel purchased 4,200
shares of Royce common stock.

     D.   On or about September 10, 1991, Patel communicated
material, nonpublic information concerning Royce to one of his
brothers-in-law, who then purchased Royce common stock.

     E.   On or about April 4, 1992, Patel communicated material,
nonpublic information concerning Royce to two of his brothers-in-
law.

     F.   On April 5, 1992, Patel, while in possession of
material, nonpublic information concerning Royce, sold 5,100
shares of Royce common stock.  On April 6, 1992, while in
possession of the same material, nonpublic information concerning
Royce, Patel sold an additional 1,200 shares of Royce common
stock.

     G.   At the time the events described in Paragraphs III.C.
through III.F. above occurred, Patel knew or was reckless in not
knowing that the material, nonpublic information concerning Royce
had been conveyed to him as a result of a breach of a fiduciary
duty or similar duty arising out of a relationship of trust and
confidence.

     H.   As a result of the conduct described above, Patel
willfully violated Section 17(a) of the Securities Act of 1933
("Securities Act"), and Section 10(b) of the Exchange Act and
Rule 10b-5 thereunder.

     I.   On September 5, 1996, the Commission commenced a civil
action against Patel and others, captioned SEC v. Abul Bhuiyan,
et al., 96 Civ. 4384 (JS) (E.D.N.Y.), alleging, among 
other things, that Patel violated Section 17(a) of the Securities
Act, and Section 10(b) of the Exchange Act and Rule 10b-5, by
engaging in the conduct described above.  In that civil action,
on ______, 1997, Patel was, among other things, permanently
enjoined on consent by the United States District Court for the
Eastern District of New York from future violations of Section
17(a) of the Securities Act, and Section 10(b) of the Exchange
Act and Rule 10b-5.
==========================================START OF PAGE 3======

     J.   On April 22, 1996, Patel was convicted in the United
States District Court for the Northern District of Illinois on
one count of mail fraud, 18 U.S.C.  1341, 1346, for conduct
unrelated to that described above.  United States v. Janak C.
Patel, 96-CR-10-1 (GMM) (N.D. Ill. April 22, 1996).

                               IV.

     In view of the foregoing, the Commission deems it
appropriate and in the public interest to accept Patel's Offer
and to impose the sanctions specified in the Offer.

     Accordingly, IT IS HEREBY ORDERED that, pursuant to Section
15(b) of the Exchange Act, Patel be, and hereby is, barred from
association with any broker, dealer, investment adviser,
investment company or municipal securities dealer.

     By the Commission.



                                   Jonathan G. Katz
                                   Secretary