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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15067 / September 25, 1996

SECURITIES AND EXCHANGE COMMISSION v. THOMAS J. FOX (United
States District Court for the Eastern District of Virginia, Civil
Action No. 96-1364-A)

     On September 24, 1996, the Securities and Exchange
Commission ("Commission") filed a civil action in U.S. District
Court for the Eastern District of Virginia seeking a permanent
injunction, disgorgement, civil penalties and other relief
against Thomas J. Fox ("Fox"), a former registered representative
of Moors & Cabot, Inc. ("Moors & Cabot"), a brokerage firm
registered with the Commission.  The Commission's complaint
charges Fox with violations of Section 17(a) of the Securities
Act of 1933, Sections 10(b) and 15(a)(1) of the Securities
Exchange Act of 1934 and Rule 10b-5, thereunder.

     According to the Commission's complaint, from at least April
1991 through July 1993, Fox engaged in a fraudulent scheme
wherein he misappropriated over $1.3 million from 19 different
customer brokerage accounts at Moors & Cabot.  During the period
of the scheme, Fox was employed at the Washington, D.C. office of
Moors & Cabot.  Through a series of fraudulent, unauthorized wire
transfers, he directed money from Moors & Cabot customer accounts
to bank accounts that he, either directly or indirectly,
controlled.  Most of the money was channelled to bank accounts
maintained for the benefit of various companies in which Fox
maintained a personal financial interest.  He also directed some
of the money to his personal bank account and used it to pay his
personal living expenses.  According to the complaint, in
implementing the scheme, Fox falsified certain Moors & Cabot
records.  In addition, in order to avoid detection, he directed
over half of the money to an escrow account over which he
maintained undisclosed control.

     The complaint also alleges that, in furtherance of the
scheme, Fox made materially false and misleading statements to
his customers.  Among other things, he falsely led them to
believe that the funds transferred from their accounts had been,
or would be, used to purchase various securities, including
investments in his affiliated companies.  In April 1993, the
scheme was discovered by Moors & Cabot and the firm subsequently
terminated Fox's employment.  The Commission also alleges that
Fox engaged in unregistered broker-dealer activities by selling