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               SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 14869 / April 10, 1996

SECURITIES AND EXCHANGE COMMISSION v. MICHAEL ANTHONY PIERCE AND
JOCELYN JANE O'ROURKE (United States District Court for the
District of Massachusetts, C.A. No. 96-10600-RCL)

     The Commission announced that on April 9, 1996, the
Honorable Reginald C. Lindsay of the U.S. District Court for the
District of Massachusetts entered a temporary restraining order
against Michael Anthony Pierce ("Pierce") d/b/a Pierce &
Associates and Jocelyn Jane O'Rourke ("O'Rourke"), both residents
of Worcester, Massachusetts, restraining them from continuing
their misappropriation of clients' funds and requiring them to
repatriate all misappropriated client funds.  The emergency asset
freeze of the defendants' assets ordered by the Court on March
22, 1996 continues to be in effect. 

     The Commission's complaint alleges that, in violation of the
federal securities laws, Pierce and O'Rourke repeatedly took
assets that investment advisory and securities brokerage clients
had entrusted to them and, instead of investing the assets as
directed, converted the funds to the Defendants' own personal
use.  At least $1.7 million was thus misappropriated from at
least 23 clients over a five year period.  Since both Defendants
failed and refused to provide information during the Commission's
investigation, the amount of losses and the number of victims may
be substantially higher.

     In an attempt to conceal the fraud, Defendant Pierce created
and sent to the clients false account statements, fictitious
contracts and other misleading documents.  Both Defendants caused
periodic payments to be made to certain clients to make it
falsely appear that their funds had been invested as directed. 
Both Defendants Pierce and O'Rourke are charged with violating
Section 17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder and
Defendant Pierce is charged with violating Sections 206(1) and
206(2) of the Investment Advisers Act of 1940.  

     On March 22, 1996, the Court issued, ex parte and under
seal, an order freezing all assets of the Defendants.  The Court
lifted its seal on March 25, 1996.  In its complaint, the
Commission also seeks preliminary and permanent injunctions,
disgorgement of ill-gotten gains, civil monetary penalties, and
other equitable relief.  For further information please see
Litigation Release No. 14855.