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             U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15292 / March  14, 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 13, 1997, the Honorable Consuelo B.
Marshall issued a second temporary restraining order freezing the
personal assets of William Sedkey Saydein ("Saydein").  Saydein
was the owner and president of the now defunct W.S. Clearing,
Inc. ("WSC"), a self-clearing broker-dealer formerly serving 18
introducing brokers.    

     WSC closed its doors on March 6, 1997 because of its net
capital deficit of at least $1.1 million.  On March 4, 1997,
Saydein transferred $1.9 million from WSC's clearing account to
his personal bank account.  The Commission sought an asset freeze
to prevent the further dissipation of WSC and customer funds. 
The Commission's investigation is continuing.

     On March 7, 1997, the Honorable Robert M. Takasugi issued a
temporary restraining order preventing WSC and Saydein from
further violations of the net capital and customer protection
rules, and granting 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.  On March 12, 1997, the Honorable Consuelo B. Marshall
issued an order appointing a trustee for the liquidation of the
business of WSC.

     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 and
trustee, 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.