UNITED STATES SECURITIES AND EXCHANGE COMMISSION


          SECURITIES EXCHANGE ACT OF 1934
          RELEASE NO.    40309 /  August 7, 1998

          ADMINISTRATIVE PROCEEDING FILE NO.  3-9669

          The  Commission  has instituted public administrative proceedings
          pursuant to Sections  15(b)  and 19(h) of the Securities Exchange
          Act  of  1934  ("Exchange  Act")  against   Cesar   A.   Montilla
          ("Montilla").   Montilla  was  the  chief  executive  officer and
          registered  principal  of the Clark Melvin Securities Corporation
          ("CMS" or "the firm").   CMS is located in Hato Rey, Puerto Rico,
          and has been registered with  the  Commission  as a broker-dealer
          since  1959.   The  administrative  proceedings  are  based  upon
          allegations that between at least January 1995 through  September
          1997  and  during  the  time that Montilla was the supervisor  of
          Hernan Perez ("Perez"), Perez,  a  registered  representative  of
          CMS,   willfully   violated   the  antifraud  provisions  of  the
          Securities Act of 1933 and the  Exchange  Act by misappropriating
          at least approximately $2.9 million from at  least  approximately
          nineteen  customers  of CMS and from one person who provided  him
          with funds for the purpose  of opening a securities account.  The
          proceedings  are  based  upon  allegations   that  Montilla,  the
          registered  principal  of  CMS  and  Perez's  supervisor,  failed
          reasonably  to supervise Perez with a view to preventing  Perez's
          violations of the federal securities laws.

          A hearing will  be scheduled to determine whether the allegations
          against Montilla are true, and if so, what sanctions, if any, are
          appropriate in the public interest against Montilla.