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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Securities Act of 1933
Release No.  7249 / December 20, 1995

Securities Exchange Act of 1934
Release No. 36614 / December 20, 1995

ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST GEORGE R. JOHNSON
AND JOHNSON KENT SECURITIES, INC 


     On December 20, 1995, the Commission issued an order
instituting cease and desist and administrative proceedings
against Johnston Kent Securities, Inc., and one of its
principals, George R. Johnston.  The Commission asserts that
Johnston Kent and Johnston aided and abetted a fraudulent scheme
masterminded by Robert C. Wilson and others.  That scheme
involved soliciting investors, principally insurance companies,
to place funds with Wilson or one of his corporate fronts for
trading in U.S. Treasury Bills and then misappropriating the
funds.

     As part of the scheme, Wilson and his co-schemers employed
elaborate devices to conceal the missappropriations.  One of
those devices was to provide investors with totally fictitious
confirmations issued by Johnston Kent indicating that Treasury
Bills were indeed bought.  Johnston would then confirm the
purchases both orally and in writing to the victims and their
auditors.  While Johnston and Johnston Kent were providing such
assistance, Wilson gave approximately $100,000 to Johnston Kent,
and the Commission seeks disgorgement of this amount as well as
civil penalties. 

     Staff of the Commission received substantial assistance from
the the Denver office of the National Association of Securities
Dealers ("NASD") in the course of the investigation.  In this
regard, Johnston and Johnston Kent have recently entered into
settlement agreements with the NASD whereby Johnston Kent
withdrew from the brokerage business in lieu of Expulsion and
Johnston agreed to be barred as a stockbroker. 
 
     In a related matter, on December 20, 1995 the Commission
filed an application in United States District Court for the
District of Colorado seeking a temporary restraining order
against Wilson, Gary F. Long, Debenture Guaranty Corporation and,
Texas attorney Samuel L. Boyd.  The Court granted the
Commission's application for temporary relief an also froze the
assets of each defendant as well as those of entities alleged to
have received misappropriated funds.