Initial Decision of an SEC Administrative Law Judge
Salvatore Piazza, et al.
INITIAL DECISION RELEASE NO. 236
ADMINISTRATIVE PROCEEDING
FILE NO. 3-10229
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
_________________________________________________________________
In the Matter of
SALVATORE PIAZZA,
et al.
_________________________________________________________________
INITIAL DECISION
September 26, 2003
APPEARANCES Peter A. Pizzani, Jr. and Daphna Abrams, for the Division
of Enforcement, Securities and Exchange Commission
Avraham C. Moskowitz, for Respondent John Bruzzese
Respondent Robert Gallo,
BEFORE Robert G. Mahony, Administrative Law Judge
INTRODUCTION
The Securities and Exchange Commission (Commission) initiated this
proceeding on June 14, 2000, with an Order Instituting Proceedings
(OIP) pursuant to Section 8A of the Securities Act of 1933 (Securities
Act) and Sections 15(b)(6) and 21C of the Securities Exhange Act of
1934 (Exchange Act), against thirty-two Respondents. The OIP charged
Respondents with willful participation in securities manipulation
schemes in violation of Section 17(a) of the Securities Act, and
Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
On July 5, 2000, Respondent John Bruzzese (Bruzzese) filed an Answer
to the OIP, in effect, denying all of the allegations in the OIP
except those found in paragraph fifteen, which concerned his
association with broker-dealers. On January 21, 2003, Respondent
Robert Gallo (Gallo) filed an Answer, but failed to deny any of the
allegations in the OIP.
SNIPPETS:
Initial Decision of an SEC Administrative Law Judge
and Daphna Abrams, for the Division of Enforcement, Securities and Exchange Commission
The Securities and Exchange Commission initiated this proceeding on June 14, 2000, with an
The OIP charged Respondents with willful participation in securities manipulation schemes in
On July 5, 2000, Respondent John Bruzzese filed an Answer to the OIP, in effect, denying all
On January 21, 2003, Respondent Robert Gallo filed an Answer, but failed to deny any of the
On August 19, 2003, the Division of Enforcement filed a motion for summary disposition of
The OIP alleges that, from 1995 through 1996, Bruzzese allegedly participated in three
During the relevant period, Gallo allegedly participated in those manipulation schemes in
By willfully participating in these securities manipulation schemes, Bruzzese and Gallo
Pursuant to Rule 250of the Commission's Rules of Practice,
a party may make a motion for summary disposition as to any or all allegations against a
June 5, 2000), which alleged conspiracy to commit securities fraud, wire fraud, and
In his plea, Bruzzese admitted that he agreed to, and did accept, undisclosed commissions in
Respondent Bruzzese participated in fraudulent schemes in connection with penny stocks and
The sanctions under Section 15of the Exchange Act include a bar from association with any
IT IS FURTHER ORDERED that, pursuant to Section 8A of the Securities Act of 1933 and Section
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