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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14659 / September 28, 1995     

Securities and Exchange Commission v. Wendell Jeffrey Lee
(E.D. Pa., Civil Action No. 95-CV-6088)

     The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint for Permanent Injunction and
Other Equitable Relief ("Complaint") on September 27, 1995, in
the United States District Court for the Eastern District of
Pennsylvania against Wendell Jeffrey Lee ("Lee").  The Complaint
alleges that Lee violated Section 17(a) of the Securities Act of
1933 ("Securities Act"), Section 10(b) of the Securities Exchange
Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder by
misappropriating the proceeds of unauthorized securities
transactions.  The Complaint seeks permanent injunctive relief,
disgorgement of all profits, together with prejudgment interest
thereon, and the imposition of civil penalties against the
defendant.

     From July 1992 through May 1994, Lee was employed as a
registered representative in the Jenkintown, Pennsylvania branch
office of W.H. Newbold's Son & Co. ("Newbold's"), a broker-
dealer registered with the Commission.  The Complaint alleges
from April 1993 through May 1994, Lee engaged in a scheme to
defraud at least two Newbold's brokerage customers of $276,000 by
liquidating securities in the customers' accounts, without their
knowledge or consent, and misappropriating the proceeds of such
transactions for his own use.  Lee forged customers' signatures
on numerous letters authorizing and instructing Newbold's to
issue third-party checks drawn against the customers' accounts. 
Each unauthorized check was made payable to one of Lee's
creditors and/or to a bank where Lee maintained his personal
checking account.  The Complaint further alleges that Lee also
caused Newbold's to make unauthorized wire transfers of funds out
of a customer account and into accounts which Lee either
controlled or in which he enjoyed a beneficial interest. 
Subsequently, Lee used these funds to make personal investments
and to pay his personal expenses.

     Based on the above-described conduct, Lee pled guilty to
sixteen counts of felony forgery.  Commonwealth of Pennsylvania
v. Wendell Jeffrey Lee, Docket Nos. 1319-95 and 1478-95, Court of
Common Pleas, Montgomery County, Pennsylvania.  On September 11,
1995, Lee was sentenced to 5 years incarceration, 30 years of
supervised release, and ordered to make full restitution to his 
victims.