UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          Securities Exchange Act of 1934
          Release No. 39812 / March 27, 1998

          Administrative Proceeding File No. 3- 9570

          In the Matter of George J. Kolar

          The Securities and Exchange Commission (Commission) instituted
          public administrative proceedings pursuant to Sections 15(b),
          19(h) and 21B of the Securities Exchange Act of 1934 (Exchange
          Act) against George J. Kolar.  The Order Instituting Proceedings
          (Order) finds that Kolar, while employed at a registered broker-
          dealer, failed reasonably to supervise a registered
          representative subject to his supervision, within the meaning of
          Section 15(b)(4)(E) of the Exchange Act.

          Specifically, the Order finds that, from approximately January
          1992 through June 1995, Kolar was the manager of a branch office
          of the broker-dealer located near Detroit, Michigan and also
          supervised the branch manager of the broker-dealer's Troy,
          Michigan, branch office and the registered representatives in
          that office.  The Order further finds that Kolar failed
          reasonably to supervise a registered representative in the Troy
          branch office with a view toward preventing his violations of the
          federal securities laws.  The Order states that the registered
          representative sold approximately $13.6 million in promissory
          notes (Notes) issued by Lease Equities Fund, Inc. (LEF) to his
          customers at the broker-dealer, and that the Notes were not
          registered with the Commission and were not approved by the
          broker-dealer for sale to its customers.  The Order also finds
          that the Notes were part of a "Ponzi" scheme, that the registered
          representative offered and sold the Notes without conducting any
          due diligence, and that he made misrepresentations of, and
          omitted to state, material facts to investors concerning the use
          of investor funds, the source of funds to be repaid to investors,
          the risks associated with the securities, the collateral for the
          securities and the returns to be realized.  The Order further
          finds that the registered representative's customers lost at
          least $10 million due to the fraudulent nature of the Notes.

          The Order finds that, beginning in or about August 1992, Kolar
          received a "red flag" in the form of a complaint made to him by
          an individual who provided certain financial services to clients
          of the broker-dealer.  According to the Order, the complainant
          told Kolar that the registered representative had been selling
          LEF securities to his customers at the broker-dealer.  After
          receiving the red flag, the Order finds, Kolar did not take any
          steps to investigate the complaint other than relying on the
          registered representative's unverified representations that he
          did not solicit or sell LEF securities to his customers.

          A hearing will be scheduled to determine what, if any, remedial
          action is appropriate against Kolar and whether he should be
          ordered to pay a civil penalty.