U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14978/ July 10, 1996

Securities Investor Protection Corp. v. A.R. Baron & Co., Inc.,
No. 96-CIV-5171 (S.D.N.Y.)

     The Commission today announced that its cooperation with the
Securities Investor Protection Corporation (SIPC) resulted in a
suit by SIPC seeking the appointment of a trustee of SIPC's
choice to take control and liquidate the assets of A.R. Baron, to
protect investors.  A.R. Baron is a broker-dealer headquartered
in New York City.

     The Commission previously ordered an emergency Temporary
Cease and Desist Order and related interim relief, to which A.R.
Baron and two of its principals,  Andrew Bressman, and Roman
Okin, consented.  Bressman is a registered representative and
principal of the firm, as well as its President and Chief
Executive Officer.  Okin is a registered representative and
principal of the firm.  

     The Division of Enforcement alleged in its cease-and-desist
proceeding (Admin.  Proc. File No. 3-9010) that, from at least
February 1995 and continuing to the present, Respondents have
engaged in egregious fraudulent sales practices, including:

     ù    Placing unauthorized trades in customer accounts;

     ù    Refusing to carry out customer sell orders;

     ù    Refusing or delaying to remit proceeds of sales of
          securities to customers;

     ù    Opening accounts for customers without the customers'
          authorization; and

     ù    Placing margin transactions in customer accounts
          without the customers' authorization.

These practices, it is alleged, are the subject of numerous
recent customer complaints, involving nearly $17 million in
securities.

     A.R. Baron filed a Chapter 11 petition in Bankruptcy Court
in the District of New Jersey on July 3, 1996.  The appointment
by the Court of a trustee would have the effect of staying the
A.R. Baron bankruptcy proceeding and placing all A.R. Baron
assets in the control of the trustee.