SECURITIES AND EXCHANGE COMMISSION


     Securities Act of 1933 
      Release No.  7442 / August 27, 1997

      Securities Exchange Act of 1934 

      Release No. 38978 / August 27, 1997


      ADMINISTRATIVE PROCEEDING FILE NO. 3-9376 


                 On August 27, 1997,  the Commission instituted public administrative and cease-and-desist proceedings pursuant to
         Section 8A of the Securities Act of 1933 ( Securities Act ) and Sections 15(b),  15B(c)(4), 19(h) and 21C of the Securities
         Exchange Act of 1934 ( Exchange Act ), against Derek Washington (
                                                                          Washington  ) of Brooklyn, New York.  The Order Instituting
         Proceedings ( Order
                            ) alleges that Washington was a registered vice-president of a certain broker-dealer (the "broker-dealer") 
         from August 1991 to August 1993. Although not registered with the broker-dealer since August 1993, Washington, at all relevant
         times, maintained his office within the New York headquarters of the broker-dealer and was responsible for the broker-dealer's
         trading and back office operations.  The Order further alleges that from May 10, 1995 through April 18, 1996, while
         unregistered, the broker-dealer purchased and sold over $13 million in municipal bonds and received over $200,000 in proceeds
         as a result of participating in municipal underwritings.  According to the Order,  Washington was aware of his role in the
         broker-dealer s scheme to conduct unregistered underwriting business and rendered substantial assistance by, among other
         things, executing underwriting agreements, submitting solicitations for underwritings, executing transactions and placing
         orders. In addition, the Order alleges that Washington made material misrepresentations regarding the broker-dealer to various
         municipal issuers and other underwriting firms. 
                 The Order alleges that as a result of the foregoing conduct, Washington  committed and/or caused violations of Section
         17(a) of the Securities Act and Sections 15(a)(1), 15B(a)(1), 15(c)(1) and 15B(c)(1) and 10(b) of the Exchange Act, and Rules
         10b-5 and 15c1-2, thereunder, and Rule G-17 of  the  Municipal Securities Rulemaking Board (
                                                                                                     MSRB ). The Order further alleges
         Washington willfully aided and abetted violations of Sections 15(a)(1), 15B(a)(1), 15(c)(1) and 15B(c)(1) of the Exchange Act,
         and Rule 15c1-2 thereunder, and MSRB Rule G-17.  A hearing will be conducted to determine, among other things, whether
         remedial sanctions and a cease-and-desist order should be entered against Washington.




















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