UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15107 / October 3, 1996

SECURITIES AND EXCHANGE COMMISSION v. RONALD A. MONZIONE, ET AL.,
(N.D. ILL., CIVIL ACTION NO. 96 C 6353, FILED SEPTEMBER 30, 1995)

     The Securities and Exchange Commission (Commission) today
announced the filing of a Complaint on September 30, 1996, in the
United States District Court for the Northern District of
Illinois, in Chicago, seeking an order of permanent injunction,
disgorgement and civil penalties against Ronald A. Monzione
(Monzione), James D. Rocco (Rocco) and Arthur R. Lapka (Lapka). 
The Complaint alleges that Monzione, Rocco and Lapka made
misrepresentations and omissions to investors in order to sell at
least $24 million worth of unregistered securities in the form of
interests in a stock investment fund, interests in a real estate
investment fund, and certificates of deposit, in violation of
Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and
Sections 10(b), 15(a)(1) and 15(c)(1) of the Securities Exchange
Act of 1934 and Rules 10b-5 and 15c1-2 thereunder.

     The Complaint alleges, among other things, that from
approximately 1983 through August 1992, Monzione and Rocco used
First Chicago Group Inc. (First Chicago Group), an unincorporated
entity, to issue and promote the sale of at least $10 million in
unregistered securities in the form of interests in a stock
investment fund called Capital Appreciation Portfolio (CAP) and,
from 1988 through August 1992, to issue and promote the sale of
at least $600,000 in the form of unregistered securities in the
form of interests in a real estate investment fund named Unified
Income Properties (UIP).  The Complaint also alleges that from
February 1991 through August 1992, Monzione and Rocco used First
Chicago Group to issue and promote the sale of at least $14
million of unregistered securities in the form of certificates of
deposit (FCG CD's).  It alleges that Lapka acted as a salesmen
for First Chicago Group and, along with Monzione and Rocco, sold
these securities to investors.  The complaint also alleges that
the Defendants falsely told investors that CAP was a private
limited partnership investment club that used investor funds to
purchase "blue chip" stocks.  In addition, the Complaint alleges
that the Defendants falsely told investors that UIP would pool
investor funds and reinvest them in prime residential income
producing properties.  Further, it alleges that the Defendants
falsely told FCG CD investors that their funds would be used to
purchase interests in FDIC insured jumbo certificates of deposit.
In fact, the Complaint alleges, Monzione and Rocco operated a
Ponzi scheme and did not use CAP investor funds to invest in
stock, UIP investor funds to purchase income producing real
estate or FCG CD investor funds to purchase FDIC insured jumbo
certificates of deposit.  It alleges that, instead, Monzione and
Rocco used investor funds to pay other investors, for their
personal purposes and to purchase Monzione a residence.