UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Investment Advisers Act of 1940
     Release No.  1662 / September 15, 1997

     Securities Exchange Act of 1934
     Release No. 39073 / September 15, 1997

     Administrative Proceeding File No. 3-9407
      

                        ADMINISTRATIVE PROCEEDINGS INSTITUTED
                              AGAINST JOHN D. MACKENZIE

          The Commission issued an Order instituting public administrative
     proceedings against John D. MacKenzie ( MacKenzie ), who, between 1990 and
     1994, served as the Controller of BTS/Bond Timing, Inc. ( BTS ), a
     registered investment adviser, for his role in an embezzlement scheme.  The
     order alleges that, on December 20, 1994, MacKenzie pled guilty to a 40-
     count indictment charging him with 23 counts of interstate transportation
     of property taken by fraud, three counts of mail fraud, 13 counts of money
     laundering and one count of criminal forfeiture.  The Order further alleges
     that, on March 14, 1995, MacKenzie was sentenced to serve 51 months in
     federal prison, to be followed by three years of supervised release, and
     was ordered to pay $3,917,511.59 in restitution to BTS.  The proceedings
     were instituted pursuant to Sections 15(b) and 19(h) of the Securities
     Exchange Act of 1934 ( Exchange Act ) and Section 203(f) of the Investment
     Advisers Act of 1940 ( Advisers Act ).

          According to the Order, the criminal indictment underlying the
     convictions charged MacKenzie with, among other things, utilizing his
     knowledge and access as a high level officer of BTS to execute a scheme to
     defraud BTS out of approximately $3,300,000 between 1990 and September
     1994.  The indictment further alleged that MacKenzie caused BTS to issue
     approximately 700 checks to two sham entities, Equity Financial Management
     and Financial Solutions, and that he thereafter transferred the funds to
     bank accounts that he controlled and caused substantial payments to be made
     for his personal benefit.

          A hearing will be scheduled to determine whether the allegations
     against MacKenzie are true, and, if so, whether remedial sanctions should
     be imposed.










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