UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 14971 / July 8, 1996 

SEC v. Joseph Brooks, Case No. 96-235-Civ-FTM-23 (M.D. Fla.)

     The Securities and Exchange Commission announced that on
June 27, 1996, the Commission filed a civil injunctive action in
the United States District Court for the Middle District of
Florida, against Joseph Brooks ("Brooks") of Cape Coral, Florida,
alleging violations of the antifraud provisions of the federal
securities laws.  On December 4, 1995, Brooks pled no contest to
a one-count criminal information charging him with first degree
grand theft, in connection with the same facts alleged in the
Commission's complaint.  State of Florida vs. Joseph P. Brooks,
Case No. 95-2536 CF (Circuit Court of Lee County, Florida). 

     According to the complaint, between approximately October
1991 and June 1995, Brooks misappropriated approximately $366,300
from eight mostly elderly investors and subsequently used the
funds to pay, among other things, his gambling and credit card
debts.  The complaint alleges that at the time of the
misappropriation, Brooks was associated as a salesman with a
registered broker-dealer at its Ft. Myers, Florida branch office.


     The complaint also alleges that Brooks utilized a scheme
whereby he opened up bank accounts in his and his customers'
names by forging their names on new account documents, forging
requests for the release of cash management account funds, and
arranging to have the released funds forwarded by check to the
addresses he controlled.   

     Specifically, the complaint alleges that Brooks, in order to
conceal his misappropriation from the defrauded customers, misled
them about their monthly brokerage statements and the existence
of their investments.  

     The complaint seeks to enjoin Brooks from future violations
of Section 17(a) of the Securities Act of 1933, Section 10(b) of
the Securities Exchange Act of 1934, and Rule 10b-5, thereunder. 
The complaint also seeks civil money penalties.