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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Securities Exchange Act of 1934
Release No. 36879 / February 23, 1996

Administrative Proceeding File No. 3-8961

              ADMINISTRATIVE PROCEEDINGS INSTITUTED
                      AGAINST KENNETH A. ZAK


     The Commission has issued an order instituting public

administrative proceedings pursuant to Sections 15(b) and 19(h)

of the Securities Exchange Act of 1934 against Kenneth A. Zak

("Zak").  From September 1987 to September 1990, Zak, a resident

of Clinton, Connecticut, was a registered representative of

Colonial Equities Corp., which was a registered broker-dealer

from March 9, 1986 until December 1, 1990.

     The Order Instituting Public Administrative Proceedings is

based upon the entry of a permanent injunction against Zak and a

prior criminal conviction.  On November 6, 1995, the Honorable

T.F. Gilroy Daly of the U.S. District Court for the District of

Connecticut issued a Final Judgment of Permanent Injunction

against Zak.  The court, which entered this judgment based on

Zak's default, found that he violated the registration and

antifraud provisions contained in Sections 5(a), 5(c) and 17(a)

of the Securities Act, Section 10(b) of the Exchange Act and Rule

10b-5 promulgated thereunder in connection with the unregistered

offering of limited partnership interests by Colonial Realty

Company ("Colonial").  Zak, a former Colonial partner, was

permanently enjoined from further violations of these provisions





and ordered to disgorge $262,175.76 to the court, plus

prejudgment interest thereon, for the benefit of defrauded

investors.

     On June 17, 1993, Zak pled guilty to one count of federal

income tax evasion relating to sales commissions he received from

Colonial.  On November 29, 1993, Zak was sentenced to four months

imprisonment followed by four months of house arrest.  He was

also ordered to pay approximately $280,000 in back taxes for 1986

through 1988.

     A hearing will be scheduled to determine whether the

allegations against Zak are true, and, if so, what, if any,

remedial sanction is appropriate in the public interest.