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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

Litigation Release No. 14786 / January 18, 1996

SECURITIES AND EXCHANGE COMMISSION v. STANLEY J. FEMINELLA and
DAVID W. GRANSTON, United States District Court for the Southern
District of New York, Civil Action No. 96-CV-0336
(AGS)(S.D.N.Y.).

     The Securities and Exchange Commission announced today that
it filed a Complaint in the United States District Court for the
Southern District of New York against Stanley J. Feminella, a
former stockbroker, and David W. Granston,  formerly chief
financial officer of Consumers Union of United States, Inc.
("CU").  The Complaint alleges that Feminella paid kickbacks to
Granston for directing to him CU's investment business in
government securities and related securities derivatives. 
According to the Complaint, from March 1984 through February
1991, Granston caused CU and its pension fund to buy through
Feminella at least $92 million in government securities and
related derivatives.  The Complaint alleges that beginning no
later than May 1985 and continuing for a period of years,
Feminella secretly paid Granston a portion of the compensation he
earned on the securities transactions directed to him by Granston
to ensure that Granston would continue to funnel this lucrative
business to him.  The Complaint charges that, in engaging in this
kickback scheme, Feminella violated section 17(a) of the
Securities Act of 1933, and both Feminella and Granston violated
section 10(b) of the Securities Exchange Act of 1934, and
Exchange Rule 10b-5.  

     The Complaint further charges that Feminella also violated
section 17(a) of the Securities Act and section 10(b) of the
Exchange Act and Rule 10b-5 when he caused CU and its pension
fund to pay excessive markups, which ranged from 3.54 percent to
4.73 percent, on $38.5 million in government securities purchased
through him in thirty-three transactions between November 1988
through February 1991.  

     The Complaint seeks permanent injunctions against future
violations, disgorgement of ill-gotten gains, and money penalties
against Feminella and Granston for the fraudulent conduct
alleged.