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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 14790 / January 23, 1996

SEC v. JAY DEFOREST MOORE and THE DEFOREST COMPANY, INC. (N.D.
Ohio, 1:95 CV 0331, filed February 13, 1995)

     The Securities and Exchange Commission announced that on
     January 12, 1996, the United States District Court for the
     Northern District of Ohio issued a Final Order and Judgment
     (Final Order) against Defendants Jay DeForest Moore (Moore)
     and DeForest Company, Inc. (DCI).  Moore and DCI consented,
     without admitting or denying the allegations in the
     Commission's Complaint, to the entry of the Final Order.  In
     the Final Order, the Court set the amount of disgorgement
     owed by the Defendants at $826,021.63, plus interest, but
     waived payment of that amount based on the Defendants'
     demonstrated inability to pay.  The Court previously had
     permanently enjoined Moore and DCI from violating the
     antifraud provisions of the federal securities laws.

     In its Complaint, filed on February 13, 1995, the Commission
     alleged that Moore and DCI violated Section 17(a) of the
     Securities Act of 1933, Section 10(b) of the Securities
     Exchange Act of 1934, Rule 10b-5 promulgated thereunder,
     Sections 206(1), (2) and (4) of the Investment Advisers Act
     of 1940 and Rule 206(4)-2 promulgated thereunder.  The
     Commission alleged that Moore misappropriated money from
     clients of DCI, a registered investment adviser which Moore
     controlled.  The Complaint further alleged that Moore
     solicited clients of DCI to invest in DeForest Investors
     Inc. (DII).  The Complaint also stated that Moore did not
     provide the investor's money to DII.  Instead, Moore
     deposited the money into a DCI account and used the money to
     pay personal and business expenses and to pay investors who
     wished to withdraw money from DII.

     On February 13, 1995, without admitting or denying the
     allegations in the Complaint, Moore and DCI consented to the
     entry of an Order of Permanent Injunction (Injunction
     Order).  The Injunction Order left open the amount of
     disgorgement owed by the defendants.  The Final Order set
     that disgorgement amount at $826,021.63, and closed the
     case.