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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES ACT OF 1933
Release No. 7990 / June 28, 2001

SECURITIES EXCHANGE ACT OF 1934
Release No. 44492 / June 28, 2001

ADMINISTRATIVE PROCEEDING
File No. 3 - 9141


In the Matter of

Norman Lescht,

Respondent


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ORDER MAKING FINDINGS,
IMPOSING REMEDIAL SANCTIONS
AND ISSUING A CEASE-AND-
DESIST ORDER

I.

In connection with a public administrative proceeding instituted against him on October 10, 1996 pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 15(b), 19(h) and 21C of the Securities Exchange Act of 1934 ("Exchange Act"), Norman Lescht ("Lescht") has submitted an Offer of Settlement ("Offer") to the Securities and Exchange Commission ("Commission"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except as to jurisdiction which is admitted, Lescht consents to the entry of the findings and orders set forth below.

II.

On the basis of this Order Making Findings, Imposing Remedial Sanctions, and Issuing a Cease-and-Desist Order ("Order") and the Offer submitted by Lescht, the Commission makes the following findings1:

A. Norman Lescht ("Lescht"), at the time of the conduct in question was 37 years old, and a resident of New Jersey. He has been a registered representative since 1983 at various broker-dealers registered with the Commission. At the time of the conduct in question, Lescht was associated with a registered broker-dealer.

B. Princeton American Corp. f/k/a Princeton Electronic Products, Inc. is located in Phoenix, Arizona. The company purports to manufacture and distribute hair care products to the beauty and barber industry. It also purports to manage commercial office buildings. The company's securities are penny stocks and are registered with the Commission pursuant to Section 12(g) of the Exchange Act and are listed on the NASDAQ SmallCapSM Market under the symbol PELT.

C. During the period from at least in or about October 1995 through November 1995, Lescht offered to pay, and did pay, undisclosed compensation to person(s) whom he believed to be registered representative(s) or registered principal(s), to induce such registered representatives, registered principals or persons to purchase the common stock of PELT for the account of customers. For example, on or about November 16, 1995, Lescht paid a broker-dealer $3,225 in undisclosed compensation for a previous purchase of 47,000 shares of PELT at approximately $.38 per share by the broker-dealer. Accordingly, Lescht willfully violated, and committed and caused violations of, Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

III.

Based on the foregoing, the Commission deems it appropriate and in the public interest and for the protection of investors to impose the sanctions and issue the cease-and-desist order as specified in the Offer of Settlement.

Accordingly, IT IS HEREBY ORDERED that:

1. Respondent Lescht, effective immediately, cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;

2. Respondent Lescht, effective immediately, be and hereby is barred from association with any broker or dealer; and

3. Respondent Lescht, effective immediately, be and hereby is barred from participation in penny stock offerings; and

4. Respondent Lescht, prior to the close of business one year after the date of the Order, pay disgorgement in the amount of $1,200, plus interest from October 1995 to the date of the Order,2 to the United States Treasury. Such payment shall be: (a) made by United States postal money order, certified check, bank cashier's check or bank money order; (b) made payable to the U.S. Securities and Exchange Commission; (c) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Mail Stop 0-3, 6432 General Green Way, Alexandria, Virginia 22312; and (d) submitted under cover letter which identifies Norman Lescht as the Respondent in this proceeding, the file number of this proceeding, 3-9141, and a copy of which cover letter and money order or check shall be sent to Burk Burnett, Esq., Securities and Exchange Commission, Northeast Regional Office, 7 World Trade Center, 13th Floor, New York, New York 10048.

By the Commission.

Jonathan G. Katz
Secretary


Footnotes

1 Any findings contained herein are made pursuant to Respondent Lescht's Offer of Settlement and are not binding on any other person or entity named as a respondent in this or any other proceeding.
2 The amount of prejudgment interest is to be calculated using the Internal Revenue Service late payment rate.

http://www.sec.gov/litigation/admin/33-7990.htm


Modified: 06/29/2001