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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15127 / October 18, 1996

SECURITIES AND EXCHANGE COMMISSION v. BERBUN ASSOCIATES, INC. and
DONALD BUNSIS; CV96-5117 (E.D.N.Y.)

     The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint today in the United States
District Court for the Eastern District of New York against
Berbun Associates, Inc. ("Berbun") and Donald Bunsis ("Bunsis"),
alleging fraud in violation of the federal securities laws.  

The Commission's Complaint alleges as follows:

          Bunsis served as Berbun's principal operating officer
     and, from 1988 through 1993, solicited prospective investors
     in Berbun.  During this same period of time, Bunsis
     practiced law and accounting at Bunsis & Bunsis, located in
     Garden City, New York.  Bunsis and Berbun raised
     approximately $2.9 million from investors by representing to
     prospective investors that: (a) Berbun would invest in
     secondary residential mortgages; (b) Berbun would pool
     investors' monies so that each individual investor's monies
     would not be invested in any one second mortgage; and (c) an
     investment in Berbun was low risk.  Bunsis and Berbun
     offered prospective investors interest payments ranging from
     8 - 12% on their investment.

          The representations by Bunsis and Berbun were false
     because Bunsis diverted investor monies to repay certain
     favored investors, make payments to himself and his firm,
     make loans to Briarhall Country Club, a business in which
     Bunsis was a 50% owner, and make an investment in Movie
     Moguls, Inc., a business in which Bunsis was a part-owner. 
     The Briarhall and Movie Moguls loans were never repaid.  As
     a result, Berbun failed to repay the investments made by
     many of its investors.

     The Complaint alleges that Berbun and Bunsis violated
Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934, and Rule
10b-5 thereunder and seeks to enjoin him from future violations
of these provisions.  The Complaint also seeks disgorgement plus
prejudgment interest, civil penalties, and an accounting.