UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15055 / September 19, 1996

SECURITIES AND EXCHANGE COMMISSION v. ROBERT PIERCE et al., 95
Civ. 8215, USDC, SDNY (SHS)

The Securities and Exchange Commission announced that, on May 31,
1996, a Default Judgment was issued by Judge Sidney H. Stein of
the U.S.D.C., S.D.N.Y., against Robert Pierce ("Pierce"), a
registered investment adviser, Carrie Williams Pierce
("Williams") and Pierce Investments Co., a/k/a Pierce Investments
& Co., Inc. ("Pierce Investments").  The Default Judgment enjoins
the defendants from future violations of the antifraud provisions
of the federal securities laws, as well as of the books and
records provisions of the Investment Advisers Act of 1940.  The
Judgment also continued in effect the freeze of the defendants'
assets which had been imposed by earlier court orders, ordered
the defendants to submit an accounting, and ordered disgorgement
of ill-gotten gains and civil penalties in amounts to be
determined at a later date.

The Complaint, which was filed on September 26, 1995, alleges
that, beginning in or about 1993 through the date of filing,
Pierce, Williams and Pierce Investments raised approximately
$65,000 from at least 5 investors, for whom they were providing
investment advisory services.  The Complaint alleges that Pierce
told his clients that their funds would be invested in "blue
chip" securities, but that Pierce refused to provide the
Commission's staff with any records which would substantiate the
fact that his firm has purchased securities on behalf of his
investment advisory clients.  The Complaint further alleges that,
in an attempt to deceive the Commission's staff, Pierce and
Williams claimed that they had no investment advisory clients.
For further information, see Lit. Rel. Nos. 14653 and 14679.