SECURITIES EXCHANE ACT OF 1934
RELEASE NO. 41906 / September 23, 1999

Administrative Proceeding File No. 3-10025

ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT AGAINST DAVID SCOTT HEREDIA

The Commission announced today that it issued an Order Instituting Public Administrative Proceedings and Notice of Hearing Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 against David Scott Heredia ("Heredia"). In the Order, the Division of Enforcement alleges that Heredia, from at least October 4, 1993 until March 17, 1995, while Heredia was a registered representative of Stratton, Oakmont, Inc., repeatedly and fraudulently made material misrepresentations and omitted to disclose material facts to customers in an effort to solicit transactions in the securities of at least three issuers. The Order further alleges that often, Heredia made baseless price predictions and fraudulently claimed to possess material nonpublic information. The Order further alleges that Heredia also made unauthorized purchases of certain of these securities in customer accounts and failed to execute customer sell orders. As a result of his fraudulent activities, Heredia's customers suffered combined net losses of at least $250,000.

A hearing will be held before an administrative law judge to determine whether the allegations in the Order are true and, if so, what, if any, remedial sanctions against Heredia are appropriate and in the public interest.