UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 38361 / March 4, 1997 INVESTMENT ADVISERS ACT OF 1940 Release No. 1616 / March 4, 1997 ADMINISTRATIVE PROCEEDING File No. 3-9266 ______________________________ : ORDER INSTITUTING PROCEEDINGS In the Matter of : PURSUANT TO SECTIONS 15(b) AND : 19(h) OF THE SECURITIES MICHAEL ANTHONY PIERCE, : EXCHANGE ACT OF 1934 AND INDIVIDUALLY AND DOING : SECTIONS 203(e) AND (f) OF THE BUSINESS AS "PIERCE & : INVESTMENT ADVISERS ACT OF ASSOCIATES" : 1940, MAKING FINDINGS AND : IMPOSING REMEDIAL SANCTIONS _____________________________: I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that an administrative proceeding be instituted pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") and Sections 203(e) and (f) of the Investment Advisers Act of 1940 ("Advisers Act") against Michael Anthony Pierce, individually and doing business as Pierce & Associates ("Pierce"). II. In anticipation of the institution of this administrative proceeding, Pierce has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings contained herein, except those findings pertaining to the jurisdiction of the Commission over him and over the subject matter of these proceedings and the entry of the injunction and criminal conviction described in paragraphs D and E of Section III below, which he admits, Pierce consents to the entry of the findings and the imposition of the remedial sanctions set forth herein. Accordingly, IT IS ORDERED that proceedings pursuant to Sections 15(b) and 19(h) of the Exchange Act and Sections 203(e) and (f) of the Advisers Act be, and hereby are, instituted. ==========================================START OF PAGE ii====== III. On the basis of this Order Instituting Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, and Sections 203(e) and (f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions, and the Offer submitted by Pierce, the Commission finds that: -[1]- A. During all periods relevant to this proceeding, Pierce was registered with the Commission as an investment adviser as Michael Anthony Pierce d/b/a Pierce & Associates pursuant to Section 203(c) of the Advisers Act, and, from May 1983 to November 1995, Pierce was an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act. B. On March 21, 1996, the Commission filed a complaint against Pierce, in the U.S. District Court for the District of Massachusetts, -[2]- alleging, among other things, that, from January 1990 through December 1995, Pierce had violated the antifraud provisions of the Securities Act of 1933 ("Securities Act"), the Exchange Act and the rules thereunder, and the Advisers Act. C. Specifically, the Commission's complaint alleges that during that period Pierce misappropriated and converted to his own personal benefit assets valued at $1.7 million or more which at least twenty-three of his investment advisory clients had entrusted to him to invest on their behalf. D. On January 9, 1997, without admitting or denying any of the allegations contained in the complaint, except as to jurisdiction which he admitted, Pierce consented to a final judgment of permanent injunction, which was entered on February 21, 1997, pursuant to which Pierce was permanently enjoined from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act. E. On September 25, 1996, in the United States District Court for the District of Massachusetts, Pierce pled guilty to a criminal information charging him with twenty counts of mail fraud arising from essentially the same facts alleged by the Commission in its complaint and, on December 23, 1996, on the ---------FOOTNOTES---------- -[1]- The findings contained herein are not binding on anyone other than Pierce. -[2]- Securities and Exchange Commission v. Michael Anthony Pierce, Civil Action No. 96-10600 (RCL) (filed March 21, 1996). ==========================================START OF PAGE 3====== basis of that plea, a judgment of conviction was entered against Pierce. -[3]- IV. In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Pierce and to impose the sanction specified therein. Accordingly, IT IS HEREBY ORDERED that: A. the investment adviser registration of Michael Anthony Pierce, doing business as Pierce & Associates, be, and hereby is, revoked; and B. Michael Anthony Pierce be, and hereby is, barred from association with any broker, dealer, municipal securities dealer, investment adviser or investment company. By the Commission. Jonathan G. Katz Secretary ---------FOOTNOTES---------- -[3]- United States v. Michael Anthony Pierce, Criminal Action No. 96-40023-NMG.