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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No.  14679 / October 4, 1995     

SECURITIES AND EXCHANGE COMMISSION v. ROBERT PIERCE et al., 95
Civ. 8215, USDC, SDNY (SHS)

NEW YORK -- The Securities and Exchange Commission ("Commission")
announced that, on October 3, 1995, Preliminary Injunctions were
issued by Judge Sidney H. Stein of the U.S.D.C., S.D.N.Y.,
against Robert Pierce ("Pierce"), Carrie Williams Pierce
("Williams") and Pierce Investments Co., a/k/a Pierce Investments
& Co., Inc. ("Pierce Investments").  The Court's orders also
freeze the defendants' assets and order the defendants to submit
an accounting.  The defendants, without admitting or denying the
Commission's allegations, consented to the entry of the
Preliminary Injunctions.  The Preliminary Injunctions stem from a
Complaint filed by the Commission on September 26, 1995, charging
the defendants with violations of the antifraud provisions of the
federal securities laws and charging Pierce and Pierce
Investments with violations of various provisions of the
Investment Advisers Act of 1940, including the books and records
provisions.  Judge Robert P. Patterson had previously entered a
Temporary Restraining Order against the defendants on September
26, 1995 (Lit. Rel. No. 14653).

As detailed in the Complaint, beginning in or about 1993 through
the present, Pierce, Williams and Pierce Investments have raised
approximately $65,000 from at least 5 investors, for whom they
were providing investment advisory services.  The Complaint
alleges that Pierce told his clients that their funds would be
invested in "blue chip" securities, but that Pierce has refused
to provide the Commission's staff with any records which would
substantiate the fact that his firm has purchased securities on
behalf of his investment advisory clients.  The Complaint further
alleges that, in an attempt to deceive the Commission's staff,
Pierce and Williams claimed that they had no investment advisory
clients.  In addition, the Complaint alleges that, since August
1995, Pierce has refused to return approximately $20,000 to at
least one client, and that the defendants have misappropriated
their clients' funds.

The Commission's Complaint against Pierce, Williams and Pierce
Investments seeks a permanent injunction against further
violations of the antifraud and other provisions of the federal
securities laws, disgorgement of ill-gotten gains, including
prejudgment interest, civil penalties and other ancillary relief.