UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Securities Act of 1933
     Release No. 7457 / September 25, 1997
                       
     Administrative Proceeding File No. 3-9439

                        ADMINISTRATIVE PROCEEDINGS INSTITUTED
                               AGAINST JOSEPH F. REESE


          The Commission has issued an Order instituting public administrative
     proceedings pursuant to Section 8A of the Securities Act of 1933 against
     Joseph F. Reese ("Reese") of Derby, Connecticut, a former registered
     representative.

          The Order alleges that, between September 1995 and January 1996, Reese
     communicated with the Office of the Treasurer of the State of Connecticut
     on numerous occasions to solicit an investment of $100 million of public
     funds in a trading program involving "prime bank" debentures.  The State of
     Connecticut did not make any investment with Reese.  The Order alleges
     further that, in his oral and written solicitations, Reese made materially
     false and misleading statements and omissions including, among other
     things, that the funds would be used to purchase and sell debentures issued
     by the top 25 European banks, that the trading program would be managed by
     a professional account manager, that the program would generate an annual
     return of at least 80%, that such trading programs operate in secrecy and
     are available only through persons licensed by the Federal Reserve Board,
     and that Reese's compensation would be based upon the profits earned by the
     state.  The Order also alleges that Reese willfully violated Section 17(a)
     of the Securities Act of 1933.

          A hearing will be scheduled to determine whether the allegations
     against Reese are true, and, if so, whether a cease-and-desist order should
     be entered pursuant to Section 8A of the Securities Act.  

















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