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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14876 / April 15, 1996  

Securities and Exchange Commission v. Ralph Cotton et al. 
Civil Action 94-K-222 (D. Colorado)

     The Securities and Exchange Commission announced that on
April 5, 1996, a jury in the United States District Court for the
District of Colorado rendered a verdict finding John F. Long and 
James J. Baudo not guilty of insider trading. The Commission had 
filed a civil complaint alleging that Long and Baudo, who are
registered representatives at a Denver broker-dealer, had on
November 1, 1993, traded in the stock of Electromedics, Inc. 
while in possession of material nonpublic information concerning 
a possible acquisition of Electromedics. 

     Previously defendants Dr. Ralph L. Cotton and Frances W.
Parella entered into settlements with the Commission whereby they
consented to the entry of permanent injunctions without admitting
or denying the allegations of the complaint. Pursuant to those
settlements Cotton paid disgorgement of $20,496 plus prejudgment 
interest and a penalty of $60,830 and Parella paid disgorgement
of $24,258 plus prejudgment interest and a penalty of $22,500.

     For further information see Litigation Releases 14261
(September 27, 1994) and 14492 (May 4, 1995).