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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14783 / January 16, 1996

SECURITIES AND EXCHANGE COMMISSION v. KAREN L. SCHERM and ROBERT
ZIMMERMAN, Civil No. 1:93-CV-2226-WCO (USDC ND GA)

     The Commission announced that on January 3, 1996, the
Honorable J. Owen Forrester, United States District Judge for the
Northern District of Georgia, entered an Order of Permanent
Injunction and Other Relief against defendant Robert Zimmerman
("Zimmerman"), formerly a certified public accountant in Atlanta,
Georgia.  The defendant consented to the entry of the permanent
injunction without admitting or denying the allegations contained
in the Commission's First Amended Complaint.

     The Commission's complaint, filed on May 14, 1992, alleged
aiding and abetting violations against Zimmerman in conjunction
with fraud in the offer and sale of securities in customers'
Drexel Burnham Lambert ("Drexel") accounts.  Zimmerman's
codefendant Karen Scherm was a registered representative
associated with Drexel at the time the violations occurred. 
Following a judgment in favor of the Commission on September 30,
1993, an intervening change in the law as to aiding and abetting
violations was raised on appeal and the case was remanded to the
trial court.  The Commission's First Amended Complaint, filed on
August 25, 1995, alleged primary violations against Zimmerman in
conjunction with fraud in the offer and sale of securities in the
customers' accounts.  Zimmerman was ordered to disgorge
$290,570.60 in ill-gotten gains, but disgorgement in excess of
$25,000 was waived based upon Zimmerman's demonstrated inability
to pay.  

     Zimmerman is currently incarcerated at the Atlanta Federal
Penitentiary for a tax evasion conviction arising from the same
facts as in the Commission's case.  The Court's order permanently
enjoins Zimmerman from future violations of the antifraud
provisions of the federal securities laws, Section 17(a) of the
Securities Act of 1933 ("Securities Act"), and Section 10(b) of
the Securities Exchange Act of 1934 ("Exchange Act") and Rule
10b-5 thereunder.

(See also, Litigation Release No. 13820, October 5, 1993;
           Litigation Release No. 13313, July 14, 1992).