FOR IMMEDIATE RELEASE					98-124

Commission Brings Pay-To-Play Cases Against Stephens Inc.
And Its Former Head Of Public Finance, William Bethea

Stephens Agrees To Pay $2.25 Million Penalty

	Washington D.C.,  November 23, 1998 -- The Securities and  
Exchange Commission today announced two pay-to-play enforcement 
actions: one against the Little-Rock-based brokerage firm of 
Stephens Inc. and the other against the former head of its Public 
Finance Department, William C. Bethea.  The securities fraud and 
other charges stem from secret payments made to three public officials 
in exchange for municipal securities business, as well as Stephens' 
use of third parties to make campaign contributions between 1989 
and 1992.  Stephens and Bethea each agreed to settle the Commission's 
actions.  At the same time, as discussed below, Stephens entered into 
a separate civil settlement with the United States Attorney for the 
Northern District of Florida ("USAO").

	As part of its settlement with the SEC, Stephens has agreed:

- to pay a $2.25 million penalty;

- to pay $111,000 in profits, plus interest, to the Cherokee County, 
Georgia Water and Sewer Authority;

- to cease and desist from future violations; and

- to retain an independent consultant to review its compliance procedures.

For his part, Bethea consented to an injunction barring him from future 
securities-law violations, agreed to pay a $30,000 penalty, and consented 
to a bar from the securities industry.

	Both SEC enforcement actions charge that Bethea authorized 
secret payments to one Florida public official (Terry Busbee of the 
Escambia County Utilities Authority) and facilitated the secret compensation 
of another (Larry O'Dell of Osceola County).  In addition, a consultant 
hired by Stephens and Bethea assisted W. Jay Ramsey, an official of the 
Florida Housing Finance Agency, in obtaining outside employment.  Each 
of these arrangements was undertaken  for the purpose of obtaining or 
retaining municipal securities business for Stephens.  Both Busbee and 
O'Dell, as well as another former Stephens investment banker, Preston 
Bynum, have been charged by the SEC in earlier enforcement actions.  
The SEC charges that Stephens' failure to disclose the arrangements, 
the payments, and the actual and potential conflicts of interest they 
created, violated the antifraud provisions of the federal securities 
laws as well as fair dealing and other rules of the Municipal Securities 
Rulemaking Board.

	Bethea is also charged with fraud in connection with a 1992 
Walton County, Florida bond issue by failing to make required disclosures 
about Stephens' compensation of a consultant and of an employee of another 
underwriting firm.  Stephens is also charged with failing to disclose its 
receipt of a commission on the sale of a Guaranteed Investment Contract 
(GIC) to the Cherokee County, Georgia Water and Sewer Authority.  The GIC 
was sold in connection with a December 1993 municipal securities offering 
by the Cherokee County WSA for which Stephens was the sole underwriter.

	Finally, Stephens and Bethea are charged with using third parties 
(including Stephens employees and outside vendors) to make approximately 
$10,000 in campaign contributions.  Those third parties were reimbursed 
for the contributions with Stephens funds.  The campaign contributions 
were made to state and local candidates in connection with Stephens' 
efforts to obtain municipal securities business.  Neither the reimbursements 
nor the payments to elected officials were accurately reflected in Stephens' 
books and records.

	For the conduct discussed above, Stephens was charged with violations 
of the antifraud and broker-dealer books and records provisions of the federal 
securities laws.  Specifically, the firm was charged with violations of:

Section 17(a) of the Securities Act of 1933 (antifraud);

Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act 
Rule 10b-5 (antifraud);

Section 15B(c)(1) of the Exchange Act and Rules G-17 and G-20 of the 
Municipal Securities Rulemaking Board (municipal broker-dealer fair-dealing 
and prohibition on gifts and gratuities); and 

Section 17(a)(1) of the Exchange Act, Exchange Act Rule 17a-3 , and Rule 
G-8 of the MSRB (broker-dealer books and records).

Bethea was charged with violations of Section 17(a) of the Securities Act, 
Sections 10(b) and 15B(c)(1) of the Exchange Act and Rule 10b-5 thereunder, 
and MSRB rules G-17 and G-20.

	Richard H. Walker, Director of the Commission's Division of Enforcement, 
said, "Today's actions by the Commission and the Department of Justice underscore 
our commitment to ensuring the integrity of the municipal securities market.  
Whenever we find  improper payments or other attempts to corrupt that market, 
we will take vigorous enforcement action against those responsible."

	Also today, the United States Attorney for the Northern District of 
Florida ("USAO") announced the indictment of Ramsey, former Vice-Chairman of 
the FHFA.  The indictment charges that Ramsey was bribed for his support of 
Stephens' naming for certain FHFA securities business.

	The USAO also announced a civil settlement with Stephens for some of 
the same conduct giving rise to the Commission's enforcement actions.  Pursuant 
to the settlement with the USAO, Stephens has agreed:

to forfeit $2.25 million to the United States Treasury (this amount is in 
addition to the $2.25 million paid in the SEC proceeding);

to pay a total of approximately $900,000 plus interest to the Escambia County 
Utilities Authority, Osceola County, and the Florida Housing Finance Agency;

to forego doing any municipal securities business in Florida for five years; 
and to stop using consultants in its municipal securities business.


	The SEC's pay-to-play investigation in Florida and Georgia continues.  

Contacts:	William R. Baker III, 202-942-4570
		Associate Director
		Division of Enforcement

		Kathleen M. Hamm, 202-942-4637
		Assistant Director
		Division of Enforcement