Exhibit No. 99.1



                                [GRAPHIC OMITTED]


    First Montauk Financial Corp. Sues Edward Okun and Affiliates for Breach
                              of Merger Agreement


January 11, 2007 -- Red Bank, NJ -- First Montauk Financial Corp. (OTCBB: FMFK)
announced that it has filed a lawsuit in New Jersey Superior Court, Monmouth
County, against Edward H. Okun, a real estate entrepreneur based in Miami,
Florida, Investment Properties of America LLC (IPofA), his principal operating
company which is headquartered in Richmond, Virginia, and several affiliated
entities that he controls, for their breach of the merger agreement between
First Montauk and two Okun affiliated corporate entities. The lawsuit alleges,
among other things, that the Okun Defendants breached the merger agreement by
terminating the agreement on December 29, 2006 without cause or justification.

First Montauk's complaint demands specific performance of the merger agreement
and completion of the merger, which would have paid each shareholder of First
Montauk $1.00 per share of common stock. In the alternative, First Montauk seeks
compensatory damages for breach of contract and breach of the covenant of good
faith and fair dealing as well as payment of $2,000,000 held in escrow to secure
the Okun Defendants performance under the merger agreement.

In connection with the merger, First Montauk executed a lease with an Okun
affiliate to relocate First Montauk's corporate offices to a building recently
purchased by the Okun affiliate in Red Bank, New Jersey. First Montauk claims
the Okun Defendants fraudulently induced First Montauk to execute the lease by
falsely representing the Okun affiliates would consummate the Merger, and seeks
to void the lease.

Pending the court's determination, First Montauk has requested a temporary
restraining order to prevent the Okun Defendants from selling, converting or
otherwise disposing of any of their First Montauk securities or buying any
additional First Montauk securities. The parties have agreed to voluntarily
maintain their positions for 45 days.

The parties originally executed the merger agreement on May 5, 2006. On August
17, 2006, the shareholders of First Montauk, including an Okun affiliate,
overwhelming voted to approve the merger agreement and the merger. The merger
was originally anticipated to close in the third quarter of 2006. The parties
agreed to extend the expiration date of the merger agreement to December 31,
2006 to satisfy the remaining conditions to the merger including the completion
of regulatory approval.

First Montauk Financial Corp. is the parent company of First Montauk Securities
Corp., a registered securities broker/dealer headquartered in Red Bank, New
Jersey. First Montauk conducts securities brokerage, insurance, investment
banking and advisory business and has approximately 270 registered
representatives and services over 50,000 retail and institutional accounts,
which comprise over $3.2 billion in customer assets.

Montauk Financial Group is a service mark of First Montauk Securities Corp.,
Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First
Montauk Securities Corp., a registered securities broker/dealer headquartered in
Red Bank, NJ. Additional information is available at the Company's website at
www.montaukfinancial.com.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. This press release may contain certain statements of
a forward-looking nature relating to future events or future business
performance. Any such statements that refer to the Company's estimated or
anticipated future results or other non-historical facts are forward-looking and
reflect the Company's current perspective of existing trends and information.
These statements involve risks and uncertainties that cannot be predicted or
quantified and, consequently, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such risks and
uncertainties include, among others, risks and uncertainties detailed in each
Company's Securities and Exchange Commission filings, including each Company's
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The
forward-looking statements speak only as of the date of this release. Each of
the Companies undertake no obligation to update publicly any forward-looking
statement, whether as a result of new information, future events or otherwise.

Contact:

First Montauk Financial Corp.
Victor K. Kurylak, President and Chief Executive Officer
(800) 876-3672, ext. 4230 info@montaukfinancial.com