United States of America
before the
Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 42788 / May 16, 2000

Administrative Proceeding
File No. 3-10205

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be and hereby are instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act"), against Sandra L. Reeder ("Reeder").

In anticipation of the institution of these proceedings, Reeder has submitted an Offer of Settlement to the Commission which the Commission has determined to accept. Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, prior to a hearing pursuant to the Commission's Rules of Practice, 17 C.F.R.§ 201.100 et seq., and, without admitting or denying the findings contained herein, except as to entry of the injunction described below and the jurisdiction of the Commission over her in this matter as set forth in paragraphs II.A and II.B, which are admitted, Reeder consents to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below.

II.

On the basis of this Order and the Offer of Settlement submitted by Reeder, the Commission finds that:

A. From March 1997 through December 1999, Reeder was associated as a registered representative with WMA Securities, Inc., a broker-dealer registered with the Commission and a member of the National Association of Securities Dealers, Inc.

B. On April 14, 2000, Reeder was permanently enjoined from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, by the United States District Court for the Northern District of Texas (Fort Worth Division) [SEC v. Cornerstone Prodigy Group, Inc., et al., 4-99-978-Y]. Reeder consented to the entry of the permanent injunction without admitting or denying any violation of the federal securities laws, as alleged in the Commission's Complaint.

C. The Commission's Complaint in SEC v. Cornerstone Prodigy Group, Inc., et al. alleged that Reeder, individually and with others, raised more than $16.5 million through the offer and sale of unregistered securities in the form of investment contracts. The Complaint also alleged that Reeder misrepresented the nature of the investment, the uses of investment funds, and the source of funds to pay the return on investment.

D. As a result of the conduct described in the Commission's Complaint referenced in paragraph II.C. above, Reeder willfully violated Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

III.

In view of the foregoing, the Commission deems it appropriate and in the public interest to accept Reeder's Offer of Settlement.

Accordingly, IT IS ORDERED that Sandra L. Reeder be, and hereby is, barred from association with any broker or dealer.

By the Commission.

___________________________
Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-42788.htm