SECURITIES EXCHANGE COMMISSION

   Litigation Release No. 16693 / September 7, 2000

   ECURITIES AND EXCHANGE COMMISSION v. DANA C. GIACCHETTO AND THE
   CASSANDRA GROUP, INC., 00 Civ. 2502 (LMM)) (SDNY)

   The Securities and Exchange Commission announced today that the
   Honorable Lawrence M. McKenna, United States District Judge for the
   Southern District of New York, entered a Partial Judgment of Permanent
   Injunction By Consent Against Dana C. Giacchetto.

   In the underlying action, which was filed on April 3, 2000, the
   Commission alleged that Giacchetto, through his wholly owned
   investment advisory firm, The Cassandra Group, Inc., from September
   1997 until late March 2000, unlawfully gained possession of at least $
   20 million in client funds and diverted more than $4 million to pay
   Cassandra's operating expenses, fund Giacchetto's own lavish
   lifestyle, and compensate other clients who had been defrauded earlier
   in the scheme. Among other things, Giacchetto stole money by directing
   Brown & Company, a registered broker-dealer, to issue checks payable
   to particular Cassandra clients, drawing on funds held in those
   clients' Brown accounts, and to deliver the checks to Cassandra.
   Giacchetto then endorsed the checks himself, in his own name, and
   deposited the funds in Cassandra's corporate bank accounts. As
   Giacchetto paid complaining clients with funds stolen from other
   clients, Cassandra became a giant "asset-kiting" scheme. To conceal
   his diversion of funds, Giacchetto made a variety of
   misrepresentations to his clients.

   Giacchetto consented to the partial judgment without admitting or
   denying the Commission's allegations in its Complaint.

   The partial judgment permanently enjoins Giacchetto from violating
   Section 17(a) of the Securities Act, Section 10(b) of the Securities
   Exchange Act and Rule 10b-5 thereunder, and from violating and/or
   aiding and abetting violations of Sections 207, 204, 206(1), 206(2),
   and 206(4) of the Investment Advisers Act and Rules 204-2, 206(4)-2,
   and 206(4)-4 thereunder. The partial judgment also provides that the
   determination of the Complaint's request for disgorgement of
   ill-gotten gains and prejudgment interest, and the payment of civil
   penalties by Giacchetto, if any, will be determined through future
   stipulation of the parties, or by determination of the Court.

   See also prior Litigation Release No. 16499.
     _________________________________________________________________

Modified 09/08/2000