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RE: Andrew B. Worden - S.E.C. Files Fraud Charges



Published: March 16, 1990
LEAD: Just out of college, Andrew B. Worden opened at least 30 brokerage accounts and defrauded several brokerage firms out of more than $130,000 through the practice known as free riding, the Securities and Exchange charged yesterday.

Just out of college, Andrew B. Worden opened at least 30 brokerage accounts and defrauded several brokerage firms out of more than $130,000 through the practice known as free riding, the Securities and Exchange charged yesterday.

Mr. Worden, a 1988 graduate of Harvard, placed orders to buy securities with numerous brokers, the S.E.C. said in civil charges filed in Federal District Court in Manhattan.

'He paid for transactions that were profitable, but failed to honor unprofitable trades,' the S.E.C. said in asking that he be enjoined from violating securities laws and ordered to provide details of all his securities transactions.

Among the brokerage firms that the S.E.C. said suffered losses were Alex. Brown & Sons Inc. of Baltimore, Wessels, Arnold & Henderson of Minneapolis and Underwood, Neuhaus & Company of Houston.

Mr. Worden, who the S.E.C. said was in his early 20's, could not be reached for comment because there was no telephone number listed for him at the Manhattan address given by the commission.

http://query.nytimes.com/gst/fullpage.html?res=9C0CE5D61130F935A25750C0A966958260