UNITED STATES SECURITIES AND EXCHANGE COMMISSION


             SECURITIES EXCHANGE ACT OF 1934
             Release No.  41241 / April 1, 1999

             ACCOUNTING AND AUDITING ENFORCEMENT
             Release No.  1122 / April 1, 1999

             ADMINISTRATIVE PROCEEDING
             File No. 3-9863

             ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST FORMER
             AUDITORS OF SKY SCIENTIFIC, INC.

                  The Commission has instituted administrative
             proceedings pursuant to Rule 102(e) of the Commission’s
             Rules of Practice against Barry C. Scutillo ("Scutillo"),
             CPA, and Mark F. Jensen ("Jensen"), CPA, charging that they
             engaged in improper professional conduct by recklessly
             violating professional auditing and accounting standards in
             connection with the audit of the 1994 financial statements
             of Sky Scientific, Inc. ("Sky").

                  Previously, the Commission instituted administrative
             and cease-and-desist proceedings against Sky and seventeen
             other individuals and entities for their roles in a
             fraudulent scheme involving the filing of false and
             misleading periodic reports with the Commission, and the
             issuance of millions of shares of stock, most registered on
             Forms S-8 and issued to consultants who then sold the stock
             and returned a portion of the proceeds to Sky.  Based in
             Boca Raton, Florida, Sky purported to be in the business of
             mining and processing precious metals and in financial
             services.  The Division of Enforcement alleged that Sky’s
             periodic reports materially overstated its assets by
             assigning a $40 million value to phony Russian certificates
             of deposit ("CDs"), representing 57% of total assets;
             materially understated its net loss by failing to expense
             the cost of issuing the stock to consultants; and materially
             overstated the value of its mineral properties at $29.5
             million, representing 42% of total assets.  Following trial,
             an Administrative Law Judge recently ruled that Sky and the
             others had violated the antifraud and registration
             provisions of the federal securities laws as charged.  In
             the Matter of Sky Scientific, Inc. et al., Admin. Proc. File
             No. 3-9201, Initial Decision Release No. 137 (March 5,
             1999).