Clyde Wayne Gregory

SECURITIES ACT OF 1933
Release No. 7873 / July 18, 2000

SECURITIES EXCHANGE ACT OF 1934
Release No. 43045 / July 18, 2000

INVESTMENT ADVISERS ACT OF 1940
Release No. 1886 / July 18, 2000

ADMIINISTRATIVE PROCEEDING FILE NO. 3-10252

ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST CLYDE WAYNE GREGORY

The Securities and Exchange Commission ("Commission") announced today that it issued an order instituting public administrative and cease-and-desist proceedings ("Order") against Clyde Wayne Gregory, a resident of Madison, Alabama ("Gregory"). According to the Order, Gregory formerly was a registered representative associated with a registered broker-dealer, and an investment adviser.

The Order alleges that, from at least 1995 until at least his arrest in December of 1997, Gregory violated several antifraud provisions of the federal securities laws. Among other things, the Order alleges that Gregory willfully misappropriated client investment funds, misrepresented and omitted material facts to clients, and delivered false or misleading documents to clients. In addition, the Order alleges that, in July of 1998, a Madison County, Alabama grand jury named Gregory in a ninety-two count indictment charging Gregory with state securities violations and the theft of over $4 million in securities and insurance investments. According to the Order, in June of 1999, Gregory pled guilty in the circuit court of Madison County, Alabama to thirty-five counts of the indictment, consisting of thirty counts of theft and five counts of state securities fraud. The Order further alleges that, in July of 1999, the court sentenced Gregory to thirty years in jail as a result of his conviction.

A hearing will be held before an administrative law judge to determine whether the staff's allegations against Gregory are true, and if so, what sanctions, if any, are appropriate in the public interest against him.