UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 15298 / March 17, 1997

INJUNCTION GRANTED AGAINST ROBERT PIERCE, CARRIE L. WILLIAMS
PIERCE AND PIERCE INVESTMENTS CO. 95 CV 8215 (SHS)

     On May 31, 1996, the U.S. District Court for the Southern
District of New York entered a default judgment against against
Robert Pierce ("Pierce") and Carrie L. Williams Pierce
("Williams") and Pierce Investments Co. ("Pierce Investments"). 
The Honorable Sidney H. Stein entered a judgment enjoining
Pierce, Williams and Pierce Investments from violating section
17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder, Sections 206(1), (2) and (4) of the Investment
Advisers Act of 1940 ("Advisers Act"), and Section 204 of the
Advisers Act, and Rule 204-2 thereunder.  The Court entered a
disgorgement judgment but left the amount of disgorgement and
prejudgment interest to be determined by the Court at a future
date.  The Court also entered a judgment of liability for civil
penalties in an amount to be determined by the Court at a future
date.

     The Commission's Complaint alleged, among other things,
that, from at least 1993 through August 1995, Pierce and
Williams, through Pierce Investments, raised approximately
$65,000 from at least 5 investment advisory clients and that
Pierce and Williams misappropriated some of that money.  Pierce
told his clients that their funds would be used to invest in
"blue chip" securities and provided his clients with account
statements which indicated that their securities had been
invested in the common stock of various companies.  However, no
such investments had been made on behalf of these clients.  In
addition, Pierce told some of his clients that they could
withdraw their money on twenty-four hours notice.  However, since
August 1995, Pierce refused to return approximately $20,000 to at
least one client.  In addition, Pierce refused to provide
Commission examiners with any records that would substantiate
that the defendants had purchased securities on behalf of their
investment advisory clients.  The Complaint also alleges that
Pierce and Williams used clients' funds to pay personal expenses.