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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14682 / October 5, 1995

SECURITIES AND EXCHANGE COMMISSION v. BENJAMIN REX MOSES
H-95-4664, USDC SD/TX [Houston Division]

The Securities and Exchange Commission ("Commission") announced
that on September 29, 1995, a Complaint was filed in United
States District Court, Houston, Texas, against Benjamin Rex Moses
("Moses"), formerly a registered representative with H. D. Vest
Investment Securities, Inc. ("H. D. Vest"), alleging that Moses
violated the antifraud provisions of the federal securities laws
in the operation of Physicians Investment Club ("PIC"), an
investment club he organized and over which he exercised complete
discretionary authority, a practice that was prohibited by H. D.
Vest, and in the fraudulent management of the accounts of a
retired couple who had told Moses they needed income from their
accounts to live on.  

The Complaint alleges that Moses neither disclosed to his PIC
investors that H. D. Vest had rejected his application to open a
PIC trading account listing himself as attorney-in-fact because
it was against firm policy, nor did Moses disclose that he
solicited a PIC investor to falsely serve as attorney-in-fact on
the account's documentation papers while he himself maintained
control over the account's trading. Thereafter, according to the
Complaint, Moses falsely represented to investors that they would
realize a 20% return on their investment and lied to investors by
telling them that the account was performing positively when, in
fact, it was not, and, in furtherance of the scheme, created and
mailed to some investors, false account statements with
fictitious account balances and trading profits. 

The Complaint also alleges that Moses forged a retired couple's
signatures on an options agreement and misrepresented the
couple's option trading experience on their new account
documents, and thereafter failed to disclose to the couple that
he had been trading riskier options transactions in the accounts
contrary to their express instructions. Further, the Complaint
alleges that Moses falsely represented to the couple that the
monthly checks they received were derived from interest income
generated by the couple's principal investment when, in fact, the
account incurred trading losses of more than half the amount
invested. The Complaint also alleges that Moses misappropriated
funds from both the PIC account and the accounts of the retired
couple for his own use.

The Complaint asks the Court to issue orders permanently
enjoining Moses from further violations of the federal securities
laws, directing Moses to file an accounting with the Court,
directing Moses to disgorge all assets obtained as a result of
the activities as alleged in the Complaint, and directing Moses
to pay civil money penalties.