UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Rel. No. 8286 / September 11, 2003
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 48479 / September 11, 2003
Admin. Proc. File No. 3-10229
_________________________________________________________________
In the Matter of
SALVATORE PIAZZA, JAMES S. LABATE, WILLIAM F. PALLA EMMANUEL GENNUSSO,
CARY F. CIMINO, TODD M. NEJAIME, KEVIN P. RADIGAN, ROBERT GALLO,
ROBERT J. DACUNTO, MICHAEL P. DACUNTO, JOSEPH P. MEDURI, VINCENT A.
PADULO, JR., JOHN BRUZZESE, SALVATORE F. RUGGIERO, PATRICK GIGLIO,
IRVING STITSKY, PAUL L. BURTON, MARC I. BURTON, KENNETH J. FUINA, MARC
L. WEISSMAN, ANTHONY P. DINOTA, JR., CHESTER L. CHICOSKY, LAWRENCE M.
CHOINIERE, WILLIAM P. BURKE, MICHAEL CASO, JOHN CATALANO, JR., GEORGE
BISNOFF, DAMIEN DOUGLAS, CRAIG P. MCGUINN II,
and
MARK DANIELI,
Respondents
_________________________________________________________________
ORDER GRANTING THE DIVISION OF ENFORCEMENT'S MOTION TO MODIFY THE
ORDER INSTITUTING PROCEEDINGS TO WITHDRAW DISGORGEMENT AND CIVIL
PENALTIES CLAIMS AGAINST ALL RESPONDENTS
On June 24, 2000, the Commission instituted proceedings against the
Respondents set forth in the caption above. The Order Instituting
Proceedings ("OIP") alleged that, in connection with the manipulation
of the securities of certain issuers and the payment of bribes to
securities salespersons to sell these securities to their retail
customers, Respondents willfully violated Section 17(a) of the
Securities Act of 1933, Section 10(b) of the Securities Exchange Act
of 1934, and Exchange Act Rule 10b-5. The OIP sought disgorgement,
prejudgment interest, and civil penalties, among other sanctions,
against the Respondents.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
On June 24, 2000, the Commission instituted proceedings against the Respondents set forth in
The Order Instituting Proceedings alleged that, in connection with the manipulation of the
The OIP sought disgorgement, prejudgment interest, and civil penalties, among other
On July 27, 2000, the administrative law judge stayed this proceeding at the request of the
With one exception, each Respondent who has been sentenced has been ordered to pay
In November 2002 and May 2003, the law judge lifted the stay of proceedings as to the
Simultaneously with this motion, filed on August 19, 2003, the Division filed with the law
The motion seeks cease-and-desist orders and broker-dealer and penny stock bars against
In this motion, the Division seeks to modify the OIP to withdraw claims for disgorgement,
The Division states that it seeks disgorgement and civil penalties even where there are
The Division notes that, in most instances here, the criminal court ordered the Respondents
The Division further believes that the Commission would be unlikely to be able to collect the
The motion excludes Facundo Ponce since Ponce previously settled with the Commission.
Facundo Ponce, Securities Act Rel No. 8068, 77 SEC Docket 80 (barring Ponce from association
The court declined to order restitution against Kevin P. Radigan on the basis that there was
the OIP sought $5 million from James S. Labate.
The seven are William P. Burke, Mark I. Burton, Chester L. Chicosky, Lawrence M. Choiniere,
Salvatore Piazza, Paul L. Burton, and Palla have pleaded guilty.
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