UNITED STATES OF AMERICA
                                     before the 
                          SECURITIES AND EXCHANGE COMMISSION

     SECURITIES EXCHANGE ACT OF 1934
     Rel. No. 38770 / June 25, 1997 

     Admin. Proc. File No. 3-9256

     In the Matter of VINCENT POLISENO 

     ORDER DENYING INTERLOCUTORY APPEAL

          Administrative proceedings were instituted against Vincent Poliseno on
     February 24, 1997.  On May 14, 1997, Poliseno moved to strike ten of the
     fifteen witnesses that the Division of Enforcement proposed to call for the
     June 3, 1997 hearing on the merits.  In his motion, Poliseno argued that it
     would violate due process and fundamental fairness to permit the Division
     to call these witnesses because (i) the Division waited until May 13, 1997,
     twenty days before the start of the hearing, to disclose the identity of
     the witnesses; and (ii) the Division had previously indicated that it would
     call only five witnesses at the hearing.  At a prehearing conference on May
     15, 1997, the law judge granted Poliseno's motion.  On May 16, 1997, the
     Division filed an "Emergency Interlocutory Appeal" of the law judge's
     order.

          On May 19, 1997, the District Attorney for New York County, New York,
     informed the law judge that his office was conducting a criminal
     investigation of Poliseno and requested, with the support of the Division,
     a stay of these administrative proceedings pending the conclusion of that
     investigation.  Poliseno consented to the stay request, but asked that the
     law judge's order striking the Division's witnesses be enforced whenever
     the stay is lifted.

          On May 27, 1997, the law judge issued an order "postpon[ing]"
     proceedings in this matter.  In his order, the law judge stated that the
     postponement "renders Respondent's Motion to Strike moot."  The law judge
     added that Poliseno is free to renew his motion to strike when proceedings
     are resumed and that he will rule on such motion at that time. 
     Notwithstanding the law judge's order of May 27, 1997, the Division has not
     withdrawn its interlocutory appeal of the May 15 order.  

          As an initial matter, we note that our Rules of Practice provide for
     interlocutory review of hearing officer orders under only "extraordinary
     circumstances." <(1)>  Our Rules further provide that a ruling
     submitted for review ordinarily must be certified by the law judge.
     <(2)>  This ruling was not so certified. <(3)>  Moreover, we,


                              

          <(1)>     See Rule 400 of our Rules of Practice.

          <(2)>     Id.







     like the law judge, believe that the postponement of these proceedings has
     mooted the issue raised by Poliseno in his Motion to Strike.  Under the
     circumstances, it is appropriate to deny the Division's appeal. <(4)>

          Accordingly, IT IS ORDERED that the Division of Enforcement's
     Emergency Interlocutory Appeal from Ruling of Administrative Law Judge
     Barring Witnesses be, and it hereby is, denied.

          By the Commission.


                                             Jonathan G. Katz
                                                Secretary

























                              

          <(3)>(...continued)
          <(3)>     Nor is it clear that the Division could have satisfied
                    the requirements for certification had it sought to
                    have the law judge do so.

          <(4)>     Because we conclude that the appeal is moot, we do not
                    express any view as to the merits of the law judge's
                    May 15, 1997 ruling or the resulting relief.

               Poliseno's motion for leave to file a response to the reply
               brief of the Division is hereby granted.  The Division
               earlier was granted an extension of time until June 6, 1997
               to file its reply brief.
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