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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14667 / September 29, 1995

SEC v. Stephen T. Strabala,  (U.S.D.C. N.D. Ohio, Civil Action
No. 4:95 CV 02060, filed September 25, 1995)

     The Securities and Exchange Commission ("Commission")
announced that on September 29, 1995, the Honorable Peter C.
Economus, U.S. District Court Judge for the Northern District of
Ohio, entered a Final Judgment and Order of Permanent Injunction
and Other Equitable Relief ("Order") against Stephen T. Strabala
(Strabala) of Salem, Ohio, which enjoins Strabala from further
violations of Section 17(a) of the Securities Act of 1933,
Sections 10(b), 15(a) and 15(c) of the Securities Exchange Act of
1934 and Rules 10b-5 and 15c1-2 thereunder, and orders Strabala
to disgorge $334,000, plus prejudgment interest, but waives
payment based upon his demonstrated inability to pay and his
previous transfer of assets to Columbiana County, Ohio.  The
Order imposes no civil penalties against Strabala, based upon his
demonstrated inability to pay.  Strabala consented to the entry
of the Order against him without admitting or denying the
allegations contained in the Complaint.

     The Complaint alleges that during the period from August
1992 through September 1993, Strabala engaged in a scheme to
defraud Columbiana County, Ohio ("Columbiana") by investing its
funds in risky call and put options on the Standard & Poor's 100
Stock Index and other risky options and stocks, while concealing
these investments from Columbiana, and misappropriating the
county's funds.  The Complaint further alleges that Strabala
falsely stated to Columbiana that its funds were invested in U.S.
Treasury securities and certificates of deposit, when, in fact,
those investments were never made.  The Complaint also alleges
that, as a result of his unauthorized, speculative trading,
Strabala caused losses to Columbiana totaling $5.7 million. 

     The Complaint alleges that Strabala misappropriated $334,000
of Columbiana's funds.  The Complaint also alleges that Strabala
used these funds for personal purposes, including the purchase of
a condominium.  The Complaint further alleges that in November
1992, Strabala withdrew an additional $125,000 of Columbiana's
funds from a brokerage account for gambling, ultimately returning
this $125,000 to the account.  The Complaint also alleges that
Strabala did not inform Columbiana of these uses of Columbiana's
funds.