UNITED STATES OF AMERICA

Before the�

COMMODITY FUTURES TRADING COMMISSION

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I.

The Commodity Futures Trading Commission ("Commission") has received information from its staff which tends to show, and the Commission's Division of Enforcement ("Division") alleges and is prepared to prove, that:

1. William M. Stephens ("Registrant") resides at 1056 Greenwich Street, San�Francisco, California 94104.

2. Since February 16, 1999, Registrant has been registered with the Commission, pursuant to Section 4k of the Commodity Exchange Act, as amended ("Act"), 7�U.S.C. � 6k (1994), as an associated person of Husic Capital Management, a registered commodity trading advisor located in San Francisco, California.

3. On or about June 12, 2000, the United States Attorney for the Southern District of New York filed an indictment, entitled United States v. Lino, et al., 00 CR 632 (S.D.N.Y.), charging Registrant with at least eight federal felonies, including, but not limited to: 15�U.S.C.���80b-6 (fraud�by an investment advisor), 18 U.S.C. � 1954 (payment of illegal pension kickbacks), 18�U.S.C.���1961 (racketeering), and 18�U.S.C. � 1343 (wire fraud).

4. The indictment charges Registrant with the commission of, or participation in, crimes involving violations of federal law that reflect on the honesty or the fitness of Registrant to act as a fiduciary and that are punishable by imprisonment for a term exceeding one year.

5. The continued registration of Registrant may pose a threat to the public interest or may threaten to impair public confidence in markets regulated by the Commission. Accordingly, Registrant is subject to having his registration suspended or modified under Section 8a(11)(A) of the Act.

II.

Pursuant to its responsibilities under the Act and by reason of the foregoing allegations by the Division, the Commission deems it necessary and appropriate that public proceedings be conducted in accordance with the provisions of Commission Regulation 3.56, 17 C.F.R.���3.56 (1999), to determine whether Registrant is subject to modification or suspension of his registration status as alleged and, if so, whether the current registration of Registrant should be modified or suspended.

III.

WHEREFORE, IT IS HEREBY ORDERED that this Notice of Intent to Suspend or Modify ("Notice") be filed and that a proceeding be conducted in accordance with the provisions of Regulation 3.56 to determine whether the Registrant is subject to suspension or modification of his registration, and if so, whether the current registration of the Registrant should be suspended or modified.

Pursuant to Regulation 3.56(b)(1), Registrant may submit a written response to the Proceedings Clerk within twenty (20) days after service, and shall serve two copies of such written submission and any documents filed in this proceeding upon Scott R. Williamson, Acting Regional Counsel, and David M. Cole, Trial Attorney, Division of Enforcement, Commodity Futures Trading Commission, 300 South Riverside Plaza, Suite 1600N, Chicago, Illinois 60606.

Pursuant to Regulation 3.56(b)(2), Registrant may also request an oral hearing.

IT IS FURTHER ORDERED that this Notice shall be served on Registrant personally or by registered or certified mail forthwith.

In the absence of an appropriate waiver, no officer or employee of the Commission engaged in the performance of the investigative or prosecutorial functions in this or any factually related proceeding will be permitted to participate or advise in the decision upon this matter except as witness or counsel in proceedings held pursuant to notice.

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