UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 42237December 15, 1999
INVESTMENT ADVISERS ACT OF 1940
Release No. 1847December 15, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-10018
___________________________________
In the Matter of
ORDER MAKING FINDINGS AND
BRIAN D. O'TOOLE, d/b/a O'TOOLE IMPOSING CEASE AND DESIST
CAPITAL MANAGEMENT, ORDER AND REMEDIAL SANCTIONS
SPECTRUM SECURITIES INC., BY DEFAULT
and STEVEN D. PIRRONE
___________________________________
The Securities and Exchange Commission (Commission) initiated this
proceeding on September 20, 1999, by an Order Instituting Proceedings
(OIP), pursuant to Sections 15(b) and 21C of the Securities Exchange
Act of 1934 (Exchange Act) and Sections 203(e), (f), and (k) of the
Investment Advisers Act of 1940 (Advisers Act).
The OIP was served on Respondent Brian D. O'Toole (O'Toole) on
September 28, 1999. By the terms of the OIP and Rule 220(b) of the
Commission's Rules of Practice, 17 C.F.R. § 201.220(b), O'Toole's
Answer was due twenty days after service of the OIP. To date, O'Toole
has failed to file an Answer or other responsive pleading in this
matter.
Pursuant to Rules 155(a)(2) and 220(f), a respondent that fails to
file an Answer to the OIP or otherwise defend the proceeding may be
deemed to be in default. The administrative law judge may determine
the proceeding against the respondent upon consideration of the
record, including the OIP, the allegations of which may be deemed to
be true. On November 4, I ordered O'Toole to show cause, by November
24, why he should not be held in default and why I should not impose
the remedies the Division requested. No Answer or other responsive
pleadings were received from O'Toole.
O'Toole is in default within the meaning of Rule 155(a). He failed to
answer the OIP and has not otherwise defended the proceeding. See
Rules 155(a)(2) and 220(f). Accordingly, I find that the allegations
in the OIP are true
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
ADMINISTRATIVE PROCEEDING
The Securities and Exchange Commission initiated this proceeding on September 20, 1999, by an
The OIP was served on Respondent Brian D. O'Toole on September 28,
Pursuant to Rules 155and 220, a respondent that fails to file an Answer to the OIP or
O'Toole was associated with several broker-dealers as a registered representative from 1987
O'Toole has done business as O'Toole Capital Management (OTCM) since the summer of 1996.
O'Toole lived in the Denver, Colorado area until March or April 1998, when he moved to
Spectrum Securities, Inc. is a corporation registered with the Commission as a broker-dealer
O'Toole contends that he withdrew his request to associate with Spectrum shortly after he
During at least the last half of 1996, O'Toole held himself out to clients, potential
He informed at least 150-200 of his Prior Firm customers that he was affiliated with Spectrum
In the period from approximately August 1996 through August 1997, he transferred over
Chikly had other full-time employment, in addition to her employment with Spectrum, from
Chikly knew that O'Toole was using, and allowed him to use, her registration at Spectrum to
O'Toole willfully violated Section 10of the Exchange Act and Rule 10b-5 thereunder in that,
, not misleading; or engaged in acts, transactions, practices, or courses of business which would
The Division requests a cease and desist order, remedial sanctions, and civil money penalties.
SEC, 603 F.2d 1126, 1140 (5th Cir.
They provide that the Commission may issue an order against "such person, and any other
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