UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15638 / February 9, 1998

     SECURITIES AND EXCHANGE COMMISSION v. NICHOLAS A. ZAHAREAS, TUSCHNER &
     COMPANY, INC. and JOHN M. TUSCHNER, DEFENDANTS and EUROAMERICAN SECURITIES
     S.A., RELIEF DEFENDANT, United States District Court for the District of
     Minnesota, No. 97-2859 DSD/JMM

          The Securities and Exchange Commission announced that a preliminary
     injunction hearing was held before the Honorable David S. Doty of the U.S.
     District Court for the District of Minnesota on January 20, 1998.  After
     arguments of counsel, the Court issued a preliminary injunction against
     Nicholas A. Zahareas (Zahareas), Tuschner & Company, Inc. (Tuschner & Co.)
     and John M. Tuschner (Tuschner).  The preliminary injunction was based on
     Zahareas' association with Tuschner & Co., a Minneapolis broker-dealer, in
     violation of a July 27, 1993 Commission order barring Zahareas from
     associating with any registered broker, dealer, investment company,
     investment adviser or municipal securities dealer.  Zahareas is also the
     subject of an Order of Permanent Injunction, issued by consent against him
     on July 16, 1992, prohibiting him from violating the antifraud provisions
     of the federal securities laws. 

          In entering the preliminary injunction, the Court found that Zahareas
     violated the Commission's bar order and wrongfully associated with a
     registered broker-dealer, Tuschner & Co., by acting as a Tuschner & Co.
     registered representative in all but name.  Zahareas acted as Tuschner &
     Co.'s registered representative by:  referring at least 200 customers
     residing in Greece to Tuschner & Co.; directing trading in their accounts
     at Tuschner & Co.; placing orders for over $9 million worth of securities
     with Tuschner & Co.'s trader; determining the amount of commissions charged
     on the transactions; and receiving up to 75% of those commissions through
     payments to Relief Defendant Euroamerican Securities S.A., a Greek
     brokerage firm controlled by Zahareas.  In addition, the Court found that
     Tuschner & Co. wrongfully allowed Zahareas to associate with it and that
     Tuschner, the Chairman and Chief Executive Officer of Tuschner & Co., knew
     of Zahareas' bar from the securities industry and aided and abetted
     Zahareas' wrongful association with Tuschner & Co.

          The preliminary injunction entered against Zahareas, Tuschner & Co.
     and Tuschner restrained and enjoined them from, directly or indirectly,
     violating and/or aiding and abetting violations of Sections 15(b)(6)(B)(i)
     and 15(b)(6)(B)(ii) of the Exchange Act.  Action remains pending as to the
     Commission's prayer for the entry of a permanent injunction, disgorgement
     and civil penalties.








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