UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15033 / September 5, 1996

SEC v. Abul Bhuiyan, Nilkanth Patel, Hasmukh Patel, Janak C.
Patel, Janak M. Patel and Kanubhai Patel, 96 Civ. 4384 (JS)
(E.D.N.Y. Sept. 5, 1996)

The Commission filed a Complaint today in the United States
District Court for the Eastern District of New York, charging
employees of Royce Laboratories, Inc. ("Royce") and their
relatives and friends with two rounds of insider trading and
tipping in violation of the federal securities laws.

     Named in the Complaint are:

     1.   Abul Bhuiyan, age 43, who resides in Miami Springs,
Florida, and has been the executive vice president and director
of operations of Royce since May 1990.  

     2.   Nilkanth Patel, age 41, who resides in Cooper City,
Florida, and has been Royce's director of quality assurance and
quality control since in or about 1990.  Nilkanth Patel is a
close friend of Abul Bhuiyan's. 

     3.   Hasmukh Patel, age 47, who resides in Cooper City,
Florida, and has been employed by Royce as a chemist since May
1988.  Hasmukh Patel has been a close friend of Nilkanth Patel's
since 1988 and reported directly to Nilkanth Patel during the
time the events alleged in the Complaint.  

     4.   Kanubhai Patel, age 43, who resides in Flushing, New
York, and is Janak C. Patel's brother-in-law.  

     5.   Janak C. Patel, age 39, who resides in Elmhurst,
Illinois, and has been a friend of Nilkanth Patel's.

     6.   Janak M. Patel, age 36, who resides in Wood Dale,
Illinois, and is both Janak C. Patel's brother-in-law and a
friend of Nilkanth Patel's.    


     The Complaint alleges that in the first round of illegal
trading, Abul Bhuiyan, Nilkanth Patel and Hasmukh Patel purchased
Royce securities in September 1991 while in possession of
material, nonpublic information that Royce was about to or had
received tentative approval from the United States Food and Drug
Administration ("FDA") to market the generic drug Piroxicam. 
Also, Nilkanth Patel tipped his friends Janak C. Patel and Janak
M. Patel, Janak C. Patel tipped his relative, Kanubhai Patel, and
Hasmukh Patel tipped another relative.  Each tippee illegally
purchased Royce securities prior to the September 11, 1991 public
announcement by Royce of this information. 
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     The Complaint alleges that in the second round of illegal
trading, Nilkanth Patel learned material, nonpublic information
concerning an adverse change in the approval status of Piroxicam
and shared this information with Hasmukh Patel.  Nilkanth Patel
tipped Janak C. Patel, who tipped Janak M. Patel and Kanubhai
Patel.  Each then illegally sold Royce stock prior to Royce's
public announcement on April 22, 1992 that the FDA had denied
final approval of Piroxicam.

     The Complaint seeks permanent injunctions, disgorgement plus
prejudgment interest, and penalties pursuant to the Insider
Trading and Securities Fraud Enforcement Act of 1988 against
Nilkanth Patel, Hasmukh Patel, Kanubhai Patel, Janak M. Patel and
Janak C. Patel, for violating Section 17(a) of the Securities Act
of 1933 and Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rule 10b-5, and an injunction and penalties
against Abul Bhuiyan for violating Section 10(b) of the Exchange
Act and Rule 10b-5.  The Complaint alleges that the illegal
profits and losses avoided total over $142,638.