OTHER NEWS - May 24, 1996

SEC Urged to Use Emergency Powers in Fraud Case: The staff of the Securities and Exchange Commission asked the agency to use its emergency powers for the first time in its history to stop a securities firm and its officials from committing what are allegedly fraudulent acts. The move is directed at New York broker-dealer A.R. Baron & Co. and its two top executives, Andrew Bressman and Roman Okin. The SEC staff contends that since 1993 the firm and executives have engaged in fraudulent practices, including unauthorized trades, refusing to carry out customer orders and opening accounts without customers’ authorizations. Baron’s practices have been the subject of many recent client complaints involving nearly $17 million in securities, according to the agency. The firm’s clients include New York University and Fiduciary Management Services. The firm had no comment. Normally the SEC would seek a restraining order. But the SEC has authority to issue what is known as a “cease and desist” order. A hearing is set for Wednesday.