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                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

Litigation Release No. 15341 / April 21, 1997

SECURITIES AND EXCHANGE COMMISSION v. STANLEY J. FEMINELLA and
DAVID W. GRANSTON, United States District Court for the Southern
District of New York, No. 96 Civ. 336 (AGS).

     The Securities and Exchange Commission announced that on
April 15, 1997, the United States District Court for the Southern
District of New York entered a final judgment against defendant
Stanley J. Feminella, which ordered Feminella to pay a civil
penalty of $100,000 and permanently enjoined him from violating
specified antifraud provisions of the federal securities laws. 
Feminella consented to the entry of the judgment without
admitting or denying the allegations of the Commission's
complaint.  He also consented to the entry of an administrative
order permanently barring him from association with any broker,
dealer, municipal securities dealer, investment adviser, or
investment company.  The order was entered on April 21, 1997. 
Stanley J. Feminella, Sec. Exch. Act Rel. No.  

     In its complaint, filed on January 18, 1996 (Lit. Rel. No.
14786 (Jan. 18, 1996)), the Commission alleged that Feminella, a
former stockbroker, paid kickbacks to David Granston, the former
chief financial officer of Consumers Union of United States,
Inc., to ensure that Granston continued to direct Consumers
Union's securities trading business to him.  It alleged further
that, unbeknownst to Granston, Feminella caused Consumers Union
to pay excessive markups, ranging from 3.5 percent to 4.7
percent, on its purchases of $38.5 million in Ginnie Mae
mortgage-backed securities and Treasury STRIPS (which ranged in
size from $107,000 to more than $3 million).  Granston, who was
also named as a defendant, settled with the Commission when the
action was commenced, consenting to the issuance of a permanent
prohibitory injunction and agreeing to pay a penalty of $10,000. 
Lit. Rel. No. 14939 (June 7, 1996).  Feminella undertook to
litigate the case and moved unsuccessfully to dismiss the
complaint.  S.E.C. v. Feminella, 947 F. Supp. 722 (S.D.N.Y.
1996).
  
     In a related criminal action, Granston pled guilty in early
1994 to a single count of wire fraud for paying kickbacks to
Feminella.  U.S. v. Granston, 93 Cr. 979 (CLB)(S.D.N.Y. 1993). 
In a related administrative proceeding, Lehman Brothers Inc. (as
successor to Shearson Lehman Brothers Inc., Feminella's former
employer) consented to the issuance of an order finding that
Shearson had failed to supervise Feminella with a view toward
preventing his causing Consumers Union to pay excessive markups,
and ordering Lehman Brothers to pay a penalty of $50,000. Lehman
Brothers Inc., as successor to Shearson Lehman Brothers Inc.,
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Sec. Exch. Act Rel. No. 37673 (Sept. 12, 1996).  Separately,
Consumers Union reached private settlements related to this
matter with Feminella, Granston, and others.