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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.


Securities Exchange Act of 1934
Release No.  38176 / January 16, 1997

Securities Investor Protection Act of 1970 
Release No.    161 / January, 1997

Administrative Proceeding File Number 3-9224


     PUBLIC ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST BRIAN
     J. MCCAHERY

      The Securities and Exchange Commission ("Commission")
instituted public administrative proceedings against Brian J.
McCahery ("McCahery") based on his misappropriation of
approximately $3 million from customers of U.S. Equity Management
Corp., a now defunct broker-dealer which he controlled, thereby
causing its demise. 

     The public administrative proceedings were instituted
pursuant to Sections 15(b) and 19(h) of the Securities Exchange
Act of 1934 ("Exchange Act") and Section 14(b) of the Securities
Investor Protection Act of 1970 ("SIPA").  The Order Instituting
Proceedings alleges that, from approximately August 1993 through
May 1995, McCahery, while in possession of the power to direct
the management and daily operations of U.S. Equity Management,
misappropriated approximately $3 million in U.S. Equity
Management's customers' funds, and, accordingly, failed to act in
a responsible manner to avoid the financial collapse of U.S.
Equity Management.  The Order also alleges that, on September 22,
1995, the Honorable Shira A. Scheindlin, United States District
Court Judge, entered an Order on consent which appointed a
trustee for the liquidation of the business of U.S. Equity
Management pursuant to SIPA.  In addition, the Order alleges
that, on December 21, 1995, McCahery pled guilty to one count of
wire fraud arising from his misappropriation of customer funds
through U.S. Equity Management, and, on May 3, 1996, McCahery was
sentenced to three years in prison and ordered to pay
restitution.

     A hearing will be scheduled to determine what remedial
sanction, if any, is appropriate against McCahery based on his
failing to act reasonably to prevent the financial demise of U.S.
Equity Management and on the criminal conviction entered against
him.