Securities Act of 1933
              Release No.  7578 / September 10, 1998

              Securities Exchange Act of 1934
              Release No. 40429 / September 10, 1998

              Administrative Proceeding
              File No. 3-9702

              ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS INSTITUTED
              AGAINST BRADFORD A. OROSEY, LARRY J. BAGWELL, CONNIE L.
              BALLY AND JOSEPH O. FALLIN AND ADMINISTRATIVE PROCEEDINGS
              INSTITUTED AGAINST MGSI SECURITIES, INC. AND JAMES W. GG


              On   September   10,   1998,  the  Commission  instituted  public
              administrative and cease-and-desist  proceedings against Bradford
              A.  Orosey ("Orosey"), Larry J. Bagwell  ("Bagwell"),  Connie  L.
              Bally  ("Bally")  and  Joseph O. Fallin ("Fallin") and instituted
              administrative proceedings  against James W. Ogg ("Ogg") and MGSI
              Securities,  Inc.  ("MGSI")  a Houston-based  registered  broker-
              dealer.   The  Order Instituting  Administrative  And  Cease-And-
              Desist Proceedings  Pursuant  To Section 8A of the Securities Act
              of 1933 ("Securities Act") and  Sections  15(b), 19(h) and 21C of
              the Securities Exchange Act of 1934 ("Exchange  Act"),  ("Order")
              alleges that from various times during 1992 through 1994, Orosey,
              Bagwell, Bally and Fallin willfully violated Section 17(a) of the
              Securities  Act  and Section 10(b) of the Exchange Act, and  Rule
              10b-5 thereunder,  in  connection  with  the  offer,  sale and/or
              purchase  of  securities  in  the form of collateralized mortgage
              obligations  ("CMOs"). The Order  alleges  that  while  at  MGSI,
              Orosey,  Bagwell,   Bally   and  Fallin  made  misstatements  and
              omissions of material fact and used offering materials containing
              false   and   misleading  information   concerning   the   risks,
              volatility, yield  projections  and  lack of liquidity associated
              with the CMO investments they sold to their municipal clients.

              The  Order  also alleges that MGSI's compliance  procedures  were
              inadequate  to  detect  the  false  information  disseminated  to
              investors.  Furthermore, the Order alleges that MGSI and Ogg, its
              president, CEO  and  compliance  officer,  failed  reasonably  to
              supervise Orosey, Bagwell, Bally and Fallin within the meaning of
              Exchange  Act  Section  15(b)  in  their  solicitation  of  their
              municipal clients.

              A  hearing will be scheduled to determine whether the allegations
              against  Orosey,  Bagwell,  Bally, Fallin, Ogg and MGSI are true,
              and if so, what sanctions, if  any, are appropriate in the public
              interest against them.