UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15069 / September 25, 1996

Accounting and Auditing Enforcement
Release No. 824 / September 25, 1996

Securities and Exchange Commission v. Bernard F. Bradstreet, et
al.  (D. Mass., No. 95-11647-DPW)

     The Commission announced that, on September 24, 1996,
Defendants Bernard F. Bradstreet ("Bradstreet"), Thomas E.
Campbell ("Campbell") and Debra J. Murray ("Murray"), former
members of senior management of Kurzweil Applied Intelligence,
Inc. ("Kurzweil"), consented, without admitting or denying the
allegations of the Commission's complaint ("Complaint"), to the
entry of a final judgment.  The final judgment enjoins each of
them from future violations of the antifraud provisions of the
federal securities laws and those provisions relating to the
falsification of an issuer's books and records and the making of
false statements to auditors.  The judgment also bars each of
them from serving as an officer or director of any public
company, waives disgorgement by Bradstreet and Campbell, and does
not assess penalties against Bradstreet, Campbell and Murray,
based on their demonstrated inability to pay.  The consents have
been submitted to the court for approval.  The Commission's
litigation is continuing as to a fourth defendant, David R. Earl.


     The Complaint in this matter was filed on July 26, 1995, and
alleged that, from at least January 1992 through May 1994, the
defendants engaged in a fraudulent revenue recognition scheme
which inflated Kurzweil's revenues and earnings as reported by
the company in financial statements filed with the Commission and
disseminated publicly.  The Complaint further alleged that
Bradstreet, Kurzweil's former President and Co-Chief Executive
Officer, and Campbell, Kurzweil's former Vice President of Sales,
each offered and sold equity securities in Kurzweil's initial
public offering, knowing that the company's financial statements
were materially false and that, in 1993, Bradstreet received an
$80,000 bonus advance based on the then expected financial
results of operations for the fiscal year ended January 31, 1994.