SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 

Litigation Release No. 15202 / December 30, 1996


SECURITIES AND EXCHANGE COMMISSION v. NICHOLAS A. RUDI, JOSEPH C.
SALEMA, PUBLIC CAPITAL ADVISORS, INC. (formerly known as
CONSOLIDATED FINANCIAL MANAGEMENT, INC.), GEORGE L. TUTTLE, JR.
AND ALEXANDER S. WILLIAMS, United States District Court for the
Southern District of New York, 95 Civ. 1282 (LAK)

     The Commission announced today that defendants Nicholas A.
Rudi ("Rudi") and his financial advisory firm, Public Capital
Advisors, Inc. (formerly known as Consolidated Financial
Management, Inc.) ("CFM") have agreed to settle this action
without admitting or denying the Commission s allegations that
Rudi and CFM committed securities fraud by soliciting and
receiving more than $200,000 in kickbacks from First Fidelity
Securities Group ( FFSG ) in connection with a Camden County
Municipal Utilities Authority s February 1990 offering of
approximately $237,500,000 of debt securities ("Offering"). 
Under the terms of the settlement, which has been submitted to
the Court for approval, Rudi and CFM would each be enjoined from
committing securities fraud and Rudi would be ordered to pay
$86,331.40, representing disgorgement of $49,131.63 and
prejudgment interest of $37,199.77.

     Also named in the Complaint were George L. Tuttle, Jr.
("Tuttle") and Alexander S. Williams ("Williams"), both formerly
associated with FFSG, which was a registered municipal securities
dealer and a division of First Fidelity Bank, N.A. at the time of
the transactions and events alleged in the Complaint.  The
Complaint alleges that, between February and April 1990, Tuttle
and Williams caused FFSG to pay CFM the kickbacks, which were
shared by Rudi and his then partner Joseph C. Salema ("Salema"). 
Salema also allegedly solicited and received from Robert J.
Jablonski ("Jablonski") an additional $90,000 as a kickback from
the finder s fee that FFSG paid to Jablonski relating to the
Offering.  Tuttle and Williams caused FFSG to pay the kickbacks
to CFM through Jablonski's firm and disguised these payments and
other related payments on FFSG's municipal securities dealer
books and records.  

     Each of the defendants is alleged to have violated Section
17(a) of the Securities Act of 1933 ("Securities Act"), and
Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
Act") and Rule 10b-5.  In addition, Tuttle and Williams are
alleged to have violated Section 15B(c)(1) of the Exchange Act,
which prohibits effecting transactions in municipal securities in
contravention of any rule of the Municipal Securities Rulemaking
Board ( MSRB ), and MSRB rules G-8 (books and records), G-17
(fair dealing) and G-20 (gifts and gratuities).
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     Simultaneously with the filing of the Complaint, Salema
consented, without admitting or denying the allegations, to the
entry of a final judgment permanently enjoining him from
violating Section 17(a) of the Securities Act and Section 10(b)
of the Exchange Act and Rule 10b-5.  Salema also paid
$324,764.55, representing disgorgement of the money he received
as a result of the conduct alleged in the Complaint and
prejudgment interest.  At the same time, Tuttle and Williams,
without admitting or denying the allegations of the Complaint,
each consented to the entry of a final judgment permanently
enjoining them from violating Section 17(a) of the Securities
Act, Sections 10(b) and 15B(c)(1) of the Exchange Act and Rule
10b-5, and MSRB rules G-8, G-17, and G-20.  Tuttle and Williams
have disgorged $18,171.48 and $4,684.14, respectively,
representing the money each received as a result of the conduct
alleged in the Complaint.

     The disgorgement and prejudgment interest to be paid by Rudi
will be held by the Court for the benefit of persons who submit
valid claims arising under the federal securities laws by reason
of the conduct alleged against defendants in the Complaint.  Such
claims must be filed within one year after the Court approves the
settlement.  

     This past June, Rudi was acquitted in a criminal action of
all charges based on the same conduct.

     For more information, see Litigation Release No. 14421 (Feb.
23, 1995).