UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 14652 / September 26, 1995

Securities & Exchange Commission v. Charles Zandford
(United States District Court for District of Maryland, Civil
Action No. AMD 95-CV-2826)

     The Securities and Exchange Commission announced the filing
of a Complaint on September 22, 1995, in the U.S. District Court
for the District of Maryland against Charles Zandford, a former
registered representative in the Bethesda, Maryland branch office
of Dominick and Dominick, Inc., a registered brokerage firm.

     The Complaint alleges that between November 1987 and August
1990, while employed as a registered representative at Dominick,
Zandford engaged in a scheme to defraud his biggest brokerage
customer, William R. Wood, of his life savings.  Wood, an elderly
man with physical and mental disabilities, held a joint account
at Dominick with his daughter, Diane Wood Okstulski, who also
suffers from mental disabilities.

     The Complaint alleges that Zandford misappropriated
approximately $343,000 from Wood and Okstulski by liquidating,
without their knowledge and consent, securities in their Dominick
account, as well as mutual fund shares they held outside of the
Dominick account.  Zandford used at least $64,000 of the
misappropriated funds to purchase securities through his
girlfriend's brokerage account at Dominick.  Zandford used the
remainder of th2e misappropriated funds to pay personal expenses,
including credit card debts and bank loans.  The Complaint
further alleges that Zandford also received approximately $24,000
in commissions by excessively trading securities in the
Wood/Okstulski account.

     On July 24, 1995, Zandford was found guilty by a jury in the
United States District Court for the District of Maryland on
thirteen counts of wire fraud based on the same conduct described
in the Commission's Complaint.  (United States v. Zandford,
Criminal Action No. WN-94-0165)

     In a related matter, on September 18, 1995, the Commission
announced the institution and settlement of an administrative
proceeding against John Moysey, Zandford's former branch office
manager at Dominick, based on his failure to supervise Zandford
and two other Dominick registered representatives with a view
towards preventing their fraud violations.  Zandford's handling
of the Wood/Okstulski account was the basis for a portion of the
failure to supervise action. (See Commission Release No. 34-
36247)

     The Commission acknowledges the assistance of the National
Association of Securities Dealers, Inc. in this matter.