UNITED STATE SECURITIES AND EXCHANGE COMMISSION


SECURITIES EXCHANGE ACT OF 1934 Release No. 40131 / June 25, 1998

ADMINISTRATIVE PROCEEDING File No. 3-9635


ADMINISTRATIVE PROCEEDING INSTITUTED AGAINST CHRISTOPHER M.
PEDERSEN

The Securities and Exchange Commission ("Commission") announced
that it issued an Order Instituting Public Administrative
Proceeding Pursuant to Sections 15(b) and 19(h) of the Securities
Exchange Act of 1934 ("Order") against Christopher M. Pedersen 
("Pedersen"), the sole owner and principal of a formerly registered
broker dealer, City First Securities Corporation dba City
Associates Investment Corporation.  The Commission s Order
alleges that Pedersen was enjoined by a United States District
Court from future fraud and registration violations. In its
Complaint in the District Court action, the Commission alleged
that Pedersen made material misrepresentations and omissions in
connection with the offer and sale of interests in various
investment programs. The alleged misrepresentations and omissions
concerned, among other things, the purchase of bonds purportedly
backing oil and gas limited partnership investments, the use of
funds raised for investment programs and the financial stability
of the entities through which the investment programs were
offered. The Complaint also alleged that Pedersen withdrew
undisclosed salary advances and officer loans from the entities
and investment programs, and did not disclose that the entities
were in serious financial decline from at least July of 1991.

A hearing will be scheduled to take evidence on the staff s
allegations and to afford the Respondent an opportunity to
present any defense thereto. The purpose of the hearing is to
determine whether the allegations are true and whether any
remedial action should be ordered by the Commission.

James Howell Regional 
Trial Counsel 
Pacific Regional Office 
(213) 965-3877
















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