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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SECURITIES ACT OF 1933
Release No.  7347 / September 30, 1996

SECURITIES EXCHANGE ACT OF 1934
Release No. 37750 / September 30, 1996

ADMINISTRATIVE PROCEEDING FILE NO. 3- 9120 

In the Matter of Stires & Co., Inc., and Sidney H. Stires

     On September 30, 1996, the Commission instituted public
administrative and cease-and-desist proceedings against Stires &
Co., Inc., a broker/dealer headquartered in New York City, and
Sidney H. Stires, a principal of that firm, pursuant to Section
8A of the Securities Act of 1933 ("Securities Act") and Sections
15(b) and 21C of the Securities Exchange Act of 1934 ("Exchange
Act").

     The Commission's Order alleges that Stires & Co. and Sidney
Stires violated or caused and aided and abetted violations of the
antifraud and broker-dealer registration provisions of the
federal securities laws in connection with the offer and sale of
non-existent guaranteed insurance contracts purportedly issued
and guaranteed by a consortium of ten European insurance and
reinsurance companies from the middle of 1993 until at least
April 1994.  According to the Order, Stires & Co. and Sidney
Stires became active participants in the fraudulent offering, in
furtherance of which they participated in the preparation of a
materially false and misleading offering memorandum and allowed
the promoters of the fraudulent offering to funnel investors'
money through Stires & Co.'s brokerage and bank accounts.  In
addition, the Order alleges that Stires & Co. and Sidney Stires
failed to perform any due diligence concerning the offering,
notwithstanding indications of its dubious nature, and allowed
unregistered persons to offer and sell the securities from the
premises of Stires & Co.
 
     The Commission also instituted a related civil action
charging the promoters of the offering, M.T.L. International
Finance, Inc., Equity Action, Inc., John K. Robinson, Leon
Howard, and Harry Walker, with violating the antifraud provisions
of the federal securities laws.  In addition, the Commission
instituted cease-and- desist proceedings against Curtis Lynch and
David Hollander for their roles in offering and selling the
guaranteed insurance contracts through Stires & Co.  Those
proceedings allege violations of the antifraud and broker-dealer
registration provisions of the federal securities laws.  Without
admitting or denying the allegations, Lynch and Hollander have
consented to the entry of an Order by the Commission which finds
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such violations and requires disgorgement of profits, but waives
payment of the disgorgement based on their demonstrated financial
conditions.

     A hearing will be scheduled to determine what, if any,
remedial action is appropriate in the public interest against
Stires & Co. and Sidney Stires.  

(See also Litigation Release No. 15090 and Admin. Proceeding File
No. 3-9121)