UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     SECURITIES EXCHANGE ACT OF 1934
     RELEASE NO. 39134 / September 26, 1997

     ADMINISTRATIVE RELEASE NO. 3-9440

          The Commission instituted public administrative proceedings against
     Kent T. Black, Joel L. Hurst, David E. Lynch, Larry E. Muller and Robert L.
     McCook.  The Order alleges that Hurst, Lynch and Muller, operating out of a
     broker-dealer's now-defunct Houston office, engaged in a scheme to "park"
     complex mortgage-backed derivative securities with other dealers in order
     to move the securities off the firm's books.  Further, it is alleged that
     these individuals utilized this scheme to manipulate the price of the
     derivative securities, thereby charging excessive markups to the firm's
     customers amounting to over $1.85 million.  As a result of this parking
     scheme, the broker-dealer failed to maintain accurate books and records and
     incurred numerous net-capital deficiencies.

          The Order also alleges that Black made numerous misrepresentations and
     omissions in connection with the sale of mortgage-backed derivative
     securities to Escambia County, Florida.  Specifically, Black failed to
     disclose the risks associated with extremely highly risky and volatile
     securities known as "inverse floaters" and "inverse interest onlys," which
     he sold to the county.  It is also alleged that Black sold certain
     derivatives to Escambia County with the misrepresentation that the broker-
     dealer would buy the securities back at a guaranteed profit to the county,
     and that Black later refused to repurchase those securities.  Escambia
     County lost over $3 million on the securities purchased from Black.
      
          The Order alleges that Black, Hurst, Lynch and Muller willfully
     violated Section 17(a) of the Securities Act of 1933 and Sections 10(b) of
     the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. 
     Additionally, it alleges Hurst, Lynch, Muller and McCook willfully aided
     and abetted the broker-dealer's violations of Sections 15(c) and 17(a) of
     the Securities Exchange Act of 1934.

















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