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             U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15281 / March 11, 1997

SECURITIES AND EXCHANGE COMMISSION v. W.S. CLEARING, INC., a
California corporation and WILLIAM SEDKEY SAYDEIN, Civil Action
No. 97-1486 (CBM) (CWx) (C.D. Cal.)

     The United States Securities and Exchange Commission
announced that on March 7, 1997, the Honorable Robert M. Takasugi
issued a temporary restraining order preventing W.S. Clearing,
Inc. ("WSC"), a self-clearing broker-dealer located in Glendale,
California and its principal, William Sedkey Saydein, from
further violations of the net capital and customer protection
rules.  Judge Takasugi also granted the Commission's request to
appoint a temporary receiver to protect WSC's 15,000 client
accounts and client securities with a market value of
approximately $194 million.  WSC, which serves as a clearing
broker for approximately 18 introducing brokers nationwide,
closed its doors on March 6, 1997 because of its net capital
deficit of at least $1.1 million.  In addition, WSC's reserve
account, which is set aside for the protection of customers, had
a deficit of approximately $2.1 million.  Moreover, in an effort
to conceal the deficit in its reserve account and its violations
of the customer protection provisions, WSC executed unauthorized
trades, and has misused at least $2.7 million of client funds. 
The Commission's investigation is continuing.   

     In the lawsuit, which was filed in the United States
District Court for the Central District of California, the
Commission obtained an order temporarily enjoining WSC and
Saydein from further violations of Section 15(c)(3) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rules 15c3-1
(net capital) and 15c3-3 thereunder (customer protection).  The
Commission also seeks preliminary and permanent injunctions, and
other relief, including civil penalties against WSC and Saydein.

     Inquiries should be directed to the temporary receiver,
Charles D. Axelrod, at (213) 251-5140.

     The Commission acknowledges the cooperation and assistance
provided in this matter by the National Association of Securities
Dealers and the Securities Investor Protection Corporation.