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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No.  14853 / March 22, 1996      

Securities & Exchange Commission v. Stock and Option Services,
Inc., et al. (United States District Court for the District of
Maryland, Civil Action No. WN 93-2838)

     The Securities and Exchange Commission announced that on
January 29, 1996, the Honorable William M. Nickerson of the
United States District Court for the District of Columbia entered
a Final Judgment and Order against Stock and Option Services,
Inc. ("SOS") and Joshua Fry ("Fry").  SOS was formerly a
registered investment adviser located in Annapolis, Maryland, and
Fry is SOS's principal.  The Final Judgment permanently enjoins
SOS and Fry from violations of the antifraud, client custody and
record-keeping provisions of the federal securities laws, and
orders SOS and Fry to disgorge all assets for repayment to
investors, which they have done.  SOS and Fry's assets total
$536,907.  SOS and Fry consented to the Final Judgment without
admitting or denying the allegations in the Commission's
Complaint.

     The Complaint alleges that beginning in November 1991, Fry
misappropriated approximately $4 million from investors in a sham
investment fund by misrepresenting to investors that their funds
would be used to purchase options and treasury bills.  Instead,
the Complaint alleges, Fry used the majority of investor funds
for personal use.

     According to the Complaint, SOS, aided and abetted by Fry,
accepted custody of client funds without complying with the
custody provisions of the Investment Advisers Act of 1940, and
failed to maintain required books and records, such as bank and
financial statements.  The complaint alleged that SOS and Fry
violated the anti-fraud provisions of Section 17(a) of the
Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934, and Rule 10b-5 thereunder.  The complaint further
alleges that SOS, aided and abetted by Fry, violated Sections
204, 206(1), (2) and (4) and 207 of the Investment Advisers Act
of 1940, and Rules 204-1(b)(1), 204-2(a) and (b) and 206(4)-2
thereunder.  On October 14, 1993, the U.S. District Court for the
District of Maryland issued a preliminary injunction against SOS,
Fry and related parties and also froze their assets based on the
same misconduct.

     SOS's registration was revoked by the Commission in an
administrative proceeding on March 31, 1995.  On the same date,
Fry was barred from association with any broker, dealer,
municipal securities dealer, investment adviser or investment
company.