UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15653 / February 25, 1998

     SECURITIES AND EXCHANGE COMMISSION v. THE OAKFORD CORPORATION, EDWARD J.
     MUEGER, INC., R.M. CARUCCI CORP., TOUCHDOWN SECURITIES, INC., MFS
     SECURITIES CORP., OAKWOOD SECURITIES CORP., D ALESSIO SECURITIES, INC.,
     WILLIAM S. KILLEEN, THOMAS W. BOCK, THOMAS J. CAVALLINO, EDWARD J. MUEGER,
     ROBERT J. CARUCCI, CHRISTINE A. BEYER, MICHAEL A. FRAYLER, MARK R.
     SAVARESE, JOHN J. SAVARESE and JOHN R. D ALESSIO, United States District
     Court for the Southern District of New York, 98 Civ. 1366 (JSR) (S.D.N.Y.)

          The Securities and Exchange Commission today filed a federal civil
     enforcement action alleging illegal profit sharing arrangements between a
     registered broker-dealer and eight brokers on the floor of the New York
     Stock Exchange.  As a result of the unlawful arrangements, the defendants
     made over $11.1 million in illegal profits since the arrangements began in
     October 1993.  

          Named as defendants in the Commission s Complaint filed in federal
     court in Manhattan are the following:

     The Oakford Corporation ( Oakford ), a broker-dealer registered with the
        Commission since 1991, and located in New York, New York;
     William S. Killeen ("Killeen"), age 37, of Colts Neck, New Jersey,
        Oakford s Chief Executive Officer; and
     Thomas W. Bock, age 45, of Garden City, New York, Oakford s Chief Financial
        Officer.

          The Complaint alleges that Killeen and Bock entered into unlawful
     profit sharing arrangements with the following defendants, all of whom are
     members of the NYSE (collectively the  Floor Brokers ):

     .  Thomas J. Cavallino, age 41, of Shrewsbury, New Jersey, an independent
        floor broker on the NYSE doing business as Oakwood Securities, Inc.,
        since 1991;
     .  Edward J. Mueger, age 63, of Port Washington, New York,           an
     independent floor broker on the NYSE doing business as      Edward J.
     Mueger, Inc. since 1974; 
       Robert J. Carucci, age 36, of Staten Island, New York, an independent
        floor broker on the NYSE doing business as R.M. Carucci Corp. since
        1986;
       Christine A. Beyer, age 32, of Stamford Connecticut, an independent
        floor broker on the NYSE since 1992;
     .  Michael A. Frayler, age 49, of Colts Neck, New Jersey, an independent
        floor broker on the NYSE doing business as Touchdown Securities, Inc.
        since 1994;
       Mark R. Savarese, age 36, of Garden City, New York, a floor broker on
        the NYSE for MFS Securities Corp. since 1990;
       John J. Savarese, age 39, of Garden City, New York, a floor broker on
        the NYSE for MFS since 1989; and 
       John R. D Alessio, age 43, of Fort Lee, New Jersey, an independent floor

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        broker on the NYSE doing business as D Alessio Securities, Inc. since
        1983. 

     Also named as defendants are the registered broker-dealers and NYSE member
     firms Edward J. Mueger, Inc., of Port Washington, New York, R.M. Carucci
     Corp., of Staten Island, New York, Touchdown Securities, Inc., of New York,
     New York, MFS Securities Corp., of New York, New York, Oakwood Securities
     Corp., of White Plains, New York, and D Alessio Securities, Inc., of New
     York, New York.

          The Commission s Complaint alleges as follows:

          Pursuant to the profit sharing arrangements, Bock and Killeen opened
     accounts at Oakford and falsely identified the accounts as Oakford
     proprietary trading accounts.  These Oakford accounts were, in fact,
     controlled by the defendant Floor Brokers.  During the day, as they learned
     of potentially advantageous trading opportunities from their unique
     positions on the floor of the NYSE, the defendant Floor Brokers initiated
     transactions in the Oakford accounts.  The Floor Brokers and Bock and
     Killeen generally split the profits and losses in the Oakford accounts
     70/30 - 70% to the Floor Brokers and 30% to Oakford.  Between October 1993
     and December 1996, this scheme netted illegal profits totaling at least
     $11.1 million, with the Floor Brokers receiving approximately $8.8 million
     and Oakford receiving approximately $2.3 million.  

          In order to conceal their scheme, the defendants deliberately
     falsified various books and records, including order tickets, so as to
     conceal from regulators the true nature of these transactions.  During the
     trading day Oakford time stamped numerous blank order tickets.  After the
     Floor Brokers executed an order in their Oakford accounts, they
     communicated to Bock, Killeen or an Oakford clerk the details of the trade. 
     At that time, Bock, Killeen or an Oakford clerk selected a previously time
     stamped Oakford order ticket which reflected a time prior to the time the
     Floor Broker had executed the order.  Bock, Killeen, or an Oakford clerk
     then filled in the details of the trade on the Oakford order ticket.  By
     creating false order tickets in this manner, the defendants made it appear
     that the Floor Brokers  trades had resulted from orders that the Floor
     Brokers had received from Oakford. 

          The federal securities laws and a variety of NYSE rules prohibit floor
     brokers from trading for their own account while they are on the floor of
     the exchange.  From their unique position on the floor of the NYSE, floor
     brokers are immediately aware of changes in securities prices, large buy
     and sell orders for securities, and a host of other information not
     immediately ascertainable to other participants and investors in the
     markets.  The proscriptions against trading by floor brokers are intended
     to prevent floor brokers from taking unfair advantage of their unique
     position.  

          The Commission s Complaint charged the defendants with violating, or
     aiding and abetting violations of, Sections 11(a) and 17(a) of the
     Securities Exchange Act of 1934 and Rules 11a-1, 17a-3 and 17a-5 thereunder

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     and NYSE Rules 90(a), 95(a) and 111(a).  The Complaint seeks permanent
     injunctive relief, disgorgement of all illegal profits from the defendants,
     prejudgment interest and civil money penalties.  

          The Commission's action is a result of an investigation with the
     United States Attorney's Office for the Southern District of New York, the
     Internal Revenue Service Criminal Investigation Division, the Federal
     Bureau of Investigation and the NYSE.

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