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             U.S. SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 14765 / December 22, 1995

SECURITIES AND EXCHANGE COMMISSION V. JAMES A. PEARCE

Civil Action No. CV 95-6533 RJK (C.D. Cal.)

     The Securities and Exchange Commission ("Commission") 
announced on December 11, 1995, that a Judgment of Permanent
Injunction and Other Relief was obtained against James A. Pearce
("Pearce").  A civil Complaint was filed by the Commission
against Pearce on September 5, 1995 in the Central District of
California alleging that Defendant Pearce participated in a
fraudulent scheme with Steven D. Wymer ("Wymer") and the
investment advisers controlled by Wymer, Denman & Co and
Institutional Treasury Management, Inc. (collectively "ITM"). 

     From 1987 through December, 1991, Wymer, through ITM,
conducted a massive fraudulent scheme against his advisory
clients, principally small cities and towns, local government
agencies and financial institutions.  Wymer misappropriated and
diverted his advisory clients' funds, commingling and using the
funds to pay purported profits on non-existent securities
transactions made on behalf of his clients, to cover client and
personal trading losses, to fund ITM's operations and to pay for
Wymer's lavish personal living expenses.  In prior actions, Wymer
was enjoined from future securities law violations, pleaded
guilty to nine felony counts of racketeering, securities fraud,
mail fraud, bank fraud, obstruction of justice and was ordered to
pay $209 million in restitution to his former clients.  Wymer is
currently serving a prison sentence of 14 years and 7 months.

     The Commission's Complaint made the following allegations
against Pearce.  As ITM's marketing director and salesman, Pearce
prepared and distributed false and misleading marketing
materials.  Pearce assured an ITM client that the fraudulent
trades it questioned were legitimate and agreed to assist Wymer
in the concealment of excessive trading mark-ups in exchange for
a portion of the mark-ups.  Pearce acted as a registered
representative without informing clients of the investment
advisers and signed and filed with the Commission a materially
false Form ADV and Form ADV-Amendment for ITM.  For this conduct,
Wymer paid Pearce $338,000 (above Pearce's normal salary). 
Pearce also received $266,096 in undisclosed commissions from
broker-dealers on ITM clients' trades while an ITM employee.  

     Without admitting or denying the allegations contained in
the Complaint, Pearce consented to the entry of a Judgment
permanently enjoining him from future violations of the anti-
fraud provisions of the Securities Act, the Exchange Act and the
Advisers Act, Section 207 of the Advisers Act and Rule 206(4)-
1(a)(5), orders him to disgorge $604,096 plus prejudgment
interest and waives payment based on his demonstrated financial
inability to pay.  The judgment against Pearce notes the
appropriateness of civil penalties but does not impose them based
upon his demonstrated inability to pay.  In a separate
proceeding, Pearce also consented to the entry of an
administrative order barring him from association with any
broker-dealer, municipal securities dealer, investment adviser or
investment company.