UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     SECURITIES EXCHANGE ACT OF 1934
     Release No. 39154 / September 30, 1997

     Administrative Proceeding File No. 3-9458

     ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDING INSTITUTED AGAINST SANDRA
     SIMPSON AND DAPHNE PATTEE

            The Commission announced today that it has issued an Order Instituting
     Public Administrative and Cease-and-Desist Proceedings against Sandra
     Simpson and Daphne Pattee, two registered representative formerly
     associated with Prudential Securities, Inc.'s Flint, Michigan branch
     office.  The Commission alleges that from May 1991 until March 1995,
     Simpson and her sales assistant, Pattee, engaged in a scheme to defraud at
     least 42 customers, many of whom they had identified as "easy targets", by,
     among other things, engaging in unauthorized and unsuitable trading,
     unauthorized and unsuitable margin trading and churning.  In addition, in
     an attempt to cover up their fraudulent activities, Simpson and Pattee lied
     to customers about the nature and value of their investments and, in an
     attempt to cover up losses sustained by certain customers, made
     unauthorized transfers of funds between customer accounts by, among other
     things, forging letters of authorization.  The Commission alleges that, as
     a result of this conduct, Simpson and Pattee willfully violated Section
     17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the
     Securities Exchange Act of 1934 (Exchange Act), and Rule 10b-5 promulgated
     thereunder. 
























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