Salvatore Piazza, et al. Robert G. Mahony, Administrative Law Judge
Securities Act of 1933
Release No. 8068 / March 7, 2002
Securities Exchange Act of 1934
Release No. 45512 / March 7, 2002
Administrative Proceeding
File No. 3-10229
In the Matter of Facundo Ponce, Respondent. |
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ORDER MAKING FINDINGS, IMPOSING REMEDIAL SANCTIONS, AND IMPOSING A CEASE-AND-DESIST ORDER PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 AND SECTIONS 15(b)(6) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 |
I.
On June 14, 2000, the Securities and Exchange Commission ("Commission") entered an Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 ("Securities Act"), Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934 ("Exchange Act") ("Initial Order") against respondent Facundo Ponce ("Ponce").
II.
Ponce has submitted an Offer of Settlement of Facundo Ponce ("Offer") to these administrative proceedings, which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings set forth herein, except as to personal and subject matter jurisdiction, and paragraphs III.A and III.C., which are admitted, Ponce consents to the entry of the findings, remedial sanctions, and cease-and-desist order set forth below.
III.
Based on this Order, the Initial Order and Ponce's Offer, the Commission finds1:
- Ponce, age 32, resides in Williston Park, New York. From April 1996 through July 1996, Ponce was a registered representative associated with Monitor Investment Group, Inc
- Ponce received bribes in exchange for creating retail demand for two penny stocks, Beachport Entertainment Group, Inc. ("Beachport") and International Nursing Services, Inc. ("International Nursing"), by recommending those stocks to his retail customers. Ponce did not disclose to his customers that he received additional compensation to make his penny stock recommendations.
- Ponce has pleaded guilty to certain charges in a related criminal proceeding, United States v. Facundo Ponce, a/k/a "Frank", S1 00 Cr. 620 (AGS). In a plan administered in that proceeding, Ponce will be returning $74,168.75 to the customers who purchased Beachport and International Nursing stock on Ponce's recommendation.
- By recommending the purchase of Beachport and International Nursing, Ponce participated in penny stock offerings.
- Ponce willfully violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
IV.
Based on the foregoing, the Commission deems it in the public interest to impose the sanctions specified in Ponce's Offer, and
ACCORDINGLY, IT IS HEREBY ORDERED that
- pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Ponce cease and desist from committing or causing any violation and any future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.
- that Ponce be, and hereby is, barred from participating in any offering of penny stock, including: acting as a promoter, finder, consultant, agent, or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock; or inducing or attempting to induce the purchase or sale of any penny stock.
- that Ponce be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
Secretary
Endnotes
1 The findings herein are made pursuant to Respondent' Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.