UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7778 / November 17, 1999
In the Matter of
BT Alex. Brown Incorporated,
Respondent.
ORDER UNDER RULE 602(e) UNDER THE
SECURITIES ACT OF 1933, GRANTING
A WAIVER OF THE DISQUALIFICATION
PROVISION OF RULE 602(C)(3)
BT Alex. Brown Incorporated ("BT Alex. Brown") has submitted a letter,
dated September 10, 1999, for a waiver of the disqualification from
the exemption under Regulation E arising from BT Alex. Brown's
settlement of an administrative proceeding commenced by the
Commission. On November 17, 1999, pursuant to BT Alex. Brown's offer
of settlement, the Commission issued an Order Instituting
Administrative Proceedings, Making Findings of Fact, Instituting a
Cease-and-Desist Order, and Imposing Remedial Sanctions (the "Order").
The Order censures BT Alex. Brown and requires BT Alex. Brown (a) to
cease and desist from committing or causing any violations and any
future violations of Section 17(a) of the Securities Act of 1933
("Securities Act") and Section 10(b) of the Securities Exchange Act of
1934 ("Exchange Act") and Rule 10b-5 thereunder; (b) to pay
disgorgement of $603,996; and (c) to comply with its undertaking to
pay $14,701,250 as follows (1) $14,573,576 to the United States,
which, together with the $603,996 in disgorgement described above,
will total $15,177,572, such total amount being the Settlement Amount
under an agreement simultaneously entered into among BT Alex. Brown,
the Internal Revenue Service and the United States Attorney for the
Southern District of New York related to the March Refunding and other
refundings; and (2) $127,674 to certain issuers related to other
refundings, as set forth in BT Alex. Brown's offer of settlement.
The Regulation E exemption is not available for the securities of an
issuer if a director, officer, principal security holder, investment
adviser or underwriter of the securities to be offered, or any
partner, director or officer of such investment adviser or
underwriter, is subject to a Commission order pursuant to Section
15(b) of the Exchange Act. Rule 602(c)(3) under the Securities Act.
The Commission may waive the disqualification upon a showing of good
cause. Rule 602(e).
Based on the representations set forth in BT Alex. Brown's request,
SNIPPETS:
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
BT Alex.
Brown Incorporated, Respondent.
SECURITIES ACT OF 1933, GRANTING A WAIVER OF THE DISQUALIFICATION PROVISION OF RULE 602
Brown") has submitted a letter, dated September 10, 1999, for a waiver of the
Brown's settlement of an administrative proceeding commenced by the Commission.
On November 17, 1999, pursuant to BT Alex.
Brown's offer of settlement, the Commission issued an Order Instituting Administrative
Brown to cease and desist from committing or causing any violations and any future violations
n agreement simultaneously entered into among BT Alex.
Brown, the Internal Revenue Service and the United States Attorney for the Southern District
The Regulation E exemption is not available for the securities of an issuer if a director,
Based on the representations set forth in BT Alex.
Brown's request, the Commission has determined that a showing of good cause has been made
IT IS ORDERED, pursuant to Rule 602under the Securities Act, that a waiver from the
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