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Securities Exchange Act of 1934
Release No. 37247 / mAY 28, 1996

Administrative Proceeding
File No.  3-9013

ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST WENDELL JEFFREY LEE

     The Securities and Exchange Commission ("Commission") has
instituted public administrative proceedings against Wendell
Jeffrey Lee ("Lee") pursuant to Sections 15(b) and 19(h) of the
Securities Exchange Act of 1934 ("Exchange Act").

     The Commission's Order Instituting Public Proceedings
("Order") alleges that Lee, who was employed as a registered
representative in the Jenkintown, Pennsylvania branch office of
W.H. Newbold's Son & Co. ("Newbold's"), a division of Fahnestock
& Co., Inc., a broker-dealer registered with the Commission,
violated Section 17(a) of the Securities Act of 1933 ("Securities
Act"), Section 10(b) of the Exchange Act, and Rule 10b-5
thereunder by misappropriating the proceeds of unauthorized
securities transactions.  Specifically, the Order alleges that
from April 1993 through May 1994, Lee engaged in a scheme to
defraud at least two Newbold's brokerage customers of
approximately $276,000 by liquidating securities in the
customers' accounts, without their knowledge or consent, and then
misappropriating the proceeds of such transactions.  Lee forged
customers' signatures on numerous letters authorizing and
instructing Newbold's to issue checks drawn against the
customers' accounts.  He then misappropriated the checks and
converted the proceeds.  Lee also caused Newbold's to make
unauthorized wire transfers of funds out of a customer account
and into third-party accounts for his benefit.  

     The Order also alleges that, 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.  The Order further alleges that an injunction was
entered against Lee on January 4, 1996 enjoining him from future
violations of Section 17(a) of the Securities Act, Section 10(b)
of the Exchange Act and Rule 10b-5 thereunder.  (On September 27,
1995, the Commission filed a civil injunctive action against Lee.

SEC v. Wendell Jeffrey Lee, 2:95-CV-06088.)(See also Litigation
Rel. No. 14659.)