SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 


Litigation Release No. 15151 / November 5, 1996

SECURITIES AND EXCHANGE COMMISSION v. FREDERICK AUGUSTUS MORAN,
ET AL., 95 Civ. 4472 (BN) (S.D.N.Y. June 15, 1995)

     On November 1, 1996, Judge Bernard Newman, sitting by
designation in the United States District Court for the Southern
District of New York, issued a 22-page Opinion ordering that
defendants Frederick Augustus Moran ("Moran Sr.") and Moran Asset
Management, Inc. be permanently enjoined from violating Section
206(2) of the Investment Advisers Act of 1940 ("Advisers Act"),
Section 204 of the Advisers Act and Rule 204-1(b)(1) thereunder,
and Section 207 of the Advisers Act.  Judge Newman also ordered
that defendants Moran Sr. and Moran & Associates, Inc. Securities
Brokerage ("Moran & Associates") be permanently enjoined from
violating Section 15(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rule 15b3-1 thereunder.  The Judge ordered
Moran Sr. to disgorge $9551.17 plus prejudgment interest to the
United States Treasury and pay a civil money penalty of $25,000;
that Moran Asset Management pay a civil money penalty of $50,000;
and that Moran & Associates pay a civil money penalty of $25,000.

     Judge Newman incorporated his previous findings, issued in
an April 2, 1996 Opinion, finding that Moran Sr. violated Section
206(2) of the Advisers Act, breached his fiduciary duty and
defrauded his investment advisory clients by placing his personal
interest ahead of the interest of those clients, when he
allocated shares of Liberty Media Communications purchased in
advance of the announcement of the Bell Atlantic/TCI/Liberty
merger to his personal and family accounts while allocating
shares of those securities purchased at higher prices to his
clients.  The Court also found that Moran Sr. violated Sections
204 and 207 of the Advisers Act and Rule 204-1(b)(1), and Section
15(b) of the Exchange Act and Rule 15b3-1 by failing to disclose
that his sons Frederick W. Moran and Clayton Moran were directors
of Moran Asset Management and Moran & Associates.

     In Friday's Opinion, Judge Newman found explicitly that
Moran Sr.'s violation of Section 206(2) of the Advisers Act
"constituted a fraud upon his clients."  The Court concluded that
Moran Sr. "acted with knowledge" and, for a period of more than
two years, "intended to conceal that his sons were directors." 
The Court criticized Moran Sr. for attempting "to trivialize his
violations of law" and rejected Moran Sr.'s claim that he was the
victim of a government "vendetta."  Judge Newman wrote:

               [T]he court can think of no stronger 
               indictment of Moran Sr.'s belief of 
               vendetta than the fact that Moran Sr. 
               was found to be liable for six separate 
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               violations of Federal Securities laws.  
               It is difficult to imagine a more 
               powerful justification for any 
               investigation than the target of the 
               investigation being found liable.  Far 
               from demonstrating bad faith, the SEC 
               proved its case to the court.

     See also Litigation Release No. 14532 (June 15, 1995) and
Litigation Release No. 14861 (April 3, 1996).