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              UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15065 / September 24, 1996

SECURITIES AND EXCHANGE COMMISSION v. NILDA ZIM, ET AL., 95 Civ.
9143 (RO) (S.D.N.Y.)

         The Securities and Exchange Commission ("Commission")
announced that on September 11, 1996, Judge Richard Owen of the
United States District Court for the Southern District of New
York entered a Final Judgment by Default against Nilda Zim
("Zim").  Pursuant to the Final Judgment, Zim is permanently
enjoined from further violations of Section 17(a) of the
Securities Act of 1933, Sections 7(f) and 10(b) of the Securities
Exchange Act of 1934, Rule 10b-5 thereunder and Regulation X
promulgated by the Board of Governors of the Federal Reserve
System.  The Final Judgment also orders Zim to disgorge
$1,256,614.21, including prejudgment interest, and to pay a
$785,636 civil penalty pursuant to the Securities Enforcement
Remedies and Penny Stock Reform Act of 1990.  In addition, Zim is
permanently enjoined from offering for sale any security, opening
or trading in any brokerage accounts or engaging in the purchase
or sale of any security.  This restraint is absolute, and is
effective regardless of whether such solicitation, purchases or
sales are made in furtherance of a scheme or artifice to defraud.

     The Commission's Complaint alleged that beginning in
approximately December 1989, Zim and the other individual
defendants launched a free-riding scheme.  When Zim opened cash
accounts at brokerage firms, she misrepresented her identity and
net worth to give the brokers the false impression that she had
substantial assets.  During the course of the scheme Zim and the
other individual defendants opened over 645 brokerage accounts,
at more than 62 brokerage firms using approximately 40 different
assumed names. 

     When Zim ordered trades, she misrepresented her intent and
ability legitimately to pay for the securities purchases with her
own funds.  Instead, to settle her transactions, Zim instructed
her clearing agents to rely upon the proceeds from offsetting
same-day sales to pay for the purchases.  Zim and the other
individual defendants traded in this fashion over a period of at
least 4 years; and as a result over $260 million worth of
securities in cash accounts with little or no capital were
purchased and sold and the risk of loss was shifted onto
unwitting brokerage firms.  As a result of the scheme Zim
realized $785,637.12 in profits, a portion of which she is
jointly and severally liable for with two other individual
defendants.