U.S. Securities and Exchange Commission

Securities Act of 1933
Release No. 33-7339 / September 26, 1996


Securities Exchange Act of 1934
Release No. 34-37734 / September 26, 1996

Administrative Proceeding File Number 3-9104

     PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS
     INSTITUTED AGAINST PETER TOSTO AND OTHERS IN CONNECTION WITH
     KICKBACK SCHEME

      The Securities and Exchange Commission instituted cease-
and-desist proceedings against Peter Tosto and his company,
Investor Relations, Inc., and public administrative proceedings
and cease-and-desist proceedings against three registered
representatives (RRs), George Panagiotou, Mark Savage and Dean
Verrigni, pursuant to Section 8A of the Securities Act of 1933
and Sections 15(b), 19(h) and 21C of the Securities Exchange Act
of 1934, in connection with a scheme in which each respondent RR
received, or arranged for other RRs to receive, undisclosed
kickbacks for selling San Diego Bancorp (SDB) stock to public
customers.  

     The Order Instituting Proceedings alleges that Tosto,
individually and through his company, IRI, orchestrated a
kickback scheme to sell SDB stock.  Tosto was paid by a major SDB
stockholder to generate this market activity in a stock which
otherwise had a relatively illiquid market, to enable that
shareholder to sell his stock.  Tosto used some of the money to
pay Panagiotou, Savage and Verrigni to generate buying activity. 
These individuals or RRs they recruited sold SDB stock to
customers without revealing to the customers that the RRs were
being paid to recommend the stock.  The Order also alleges that
Tosto made misrepresentations, individually and through IRI, in
connection with placing purchase orders for that stock, thereby
causing substantial losses to a broker-dealer.  Panagiotou
participated in the making of those misrepresentations to the
broker-dealer.
  
     A hearing will be scheduled to determine whether the
allegations against the respondents are true, and, if so, what
remedial action, if any, is appropriate, whether cease-and-desist
orders should issue against the respondents, and whether
disgorgement and civil penalties should be imposed upon the
respondents.