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U.S. Securities and Exchange Commission

ADMINISTRATIVE PROCEEDING
File No. 3-9367

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1933
Release No. 8129/ September 12, 2002

Securities Exchange Act of 1934
Release No. 46493 / September 12, 2002


 
In the Matter of
AMERICORP SECURITIES, INC.
and
DREW EDGAR SCHAEFER,
Respondents
 


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ORDER APPROVING AMENDED
PLAN OF DISGORGEMENT
DISTRIBUTION AND ORDERING
INITIAL DISTRIBUTION

On November 1, 2000, the Commission issued an Order Approving a Plan of Disgorgement Distribution;

On September 11, 2001, all records relating to the distribution of the disgorgement fund pursuant to the Plan of Disgorgement Distribution were lost; and

The Plan Administrator sought approval of the Commission to amend the Plan of Disgorgement Distribution: (i) to permit a partial distribution of the disgorgement fund to claimants who have submitted or resubmitted claim forms since the relocation of the Commission's Northeast Regional Office following the events of September 11, 2001; (ii) to post a notice on the Commission's investor claim funds website [www.sec.gov/divisions/enforce/claims.htm] indicating that all potential claimants who have not submitted or resubmitted claim forms since September 11, 2001 will have an opportunity to submit (or resubmit) a claim against the Disgorgement Fund for a period after the posting of such notice; and (iii) to permit a second calculation of the pro rata share of each claimant who submits a valid Proof of Claim, in the event that a substantial portion of the Disgorgement Fund would otherwise go to the U.S. Treasury.

IT IS HEREBY ORDERED that the annexed Amended Plan of Disgorgement Distribution (Exhibit A) is approved; and

IT IS HEREBY FURTHER ORDERED that, pursuant to the Amended Plan of Disgorgement Distribution, the Comptroller of the Commission make an initial distribution to the Claimants, and in the amounts, set forth on Exhibit B attached hereto.

By the Commission.
 
 
 
Margaret H. McFarland
Deputy Secretary

 


EXHIBIT A

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Administrative Proceeding File No. 3-9367


 
In the Matter of
AMERICORP SECURITIES, INC. and
DREW EDGAR SCHAEFER,
Respondents
 


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AMENDED PLAN OF
DISGORGEMENT DISTRIBUTION

INTRODUCTION

On August 11, 1999, an Order Making Findings, Imposing Remedial Sanctions, and Issuing a Cease-and-Desist Order ("Order") was issued in this matter against Respondents Americorp Securities, Inc. ("Americorp"), then a registered broker-dealer, and Drew Edgar Schaefer ("Schaefer"), Americorp's former chief executive officer and chairman of the board. Americorp Securities, Inc. and Drew Edgar Schaefer, Exchange Act Release No. 41728 (August 11, 1999). The Commission accepted Respondents' Offers of Settlement in which they consented to the issuance of the Order without admitting or denying the Commission's findings.

In the Order, the Commission found that Americorp and Schaefer violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by: (1) illegally soliciting aftermarket orders for the stock of PHC, Inc. ("PHC") before its initial public offering ("IPO") on March 3, 1994 became effective; and (2) illegally delaying the execution of orders for PHC stock until the end of the trading day on March 3, 1994 in order to sell PHC stock to Americorp's customers at higher prices.

The Order required Schaefer to pay to the Commission disgorgement of $750,000, plus prejudgment interest, representing Respondents' alleged unjust enrichment from the above-described violations of the securities laws. Based upon Schaefer's demonstrated inability to pay more than $200,000 in disgorgement, the Order waived $550,000 in disgorgement plus prejudgment interest, and ordered Schaefer to pay $200,000 in disgorgement. The disgorgement was paid on August 26, 1999.

On November 1, 2000, by delegated authority the Commission approved a Plan of Disgorgement Distribution ("Distribution Plan").

Pursuant to Rule 610 of the Commission's Rules of Practice, 17 C.F.R. 201.610, the Division of Enforcement submitted this Amended Plan of Disgorgement Distribution ("Amended Distribution Plan").

A. DEFINITIONS

  1. "Affected Accounts" shall mean all retail customer accounts in which purchase orders for PHC common stock were executed by Americorp at the end of the day on March 3, 1994, in one of two batched transactions, at a price of $6 per share (including markup) (the "March 3, 1994 batched transactions"). Affected Accounts, however, shall not include the accounts of Respondents or any officers, employees, and family members thereof, nor the three retail accounts into which Respondents placed approximately 19 percent of the units offered in the PHC IPO as part of a prearranged plan, as described in Paragraph II.5. of the Order ("Nominee Accounts").
     
  2. "Claimants" shall mean the holders of Affected Accounts, or their lawful successors or representatives.
     
  3. "Disgorgement Fund" shall mean the $200,000 in disgorgement paid to the Commission by Schaefer.

B. ALLOCATION OF THE DISGORGEMENT FUND

  1. Each Claimant returning a valid Proof of Claim form shall receive the total of the Affected Account's pro rata distribution for each Affected Account for which such Claimant has made a claim on the Disgorgement Fund. Claimants who had more than one Affected Account will be entitled to receive the pro rata distribution for each Affected Account.
     
  2. Each Affected Account's pro rata distribution shall be calculated as follows: The Disgorgement Fund ($200,000) shall be divided by the total number of shares of PHC common stock purchased in all the Affected Accounts in the March 3, 1994 batched transactions (408,500 shares), yielding a per-share amount of $0.489596. Each individual Affected Account's pro rata distribution shall be calculated by multiplying the total number of shares of PHC common stock purchased in each Affected Account by $0.489596. All pro rata distributions shall be rounded to the nearest dollar ($1.00).
     
  3. If, after following the procedures for locating Claimants as set forth in Section C below, the Plan Administrator is unable to distribute more than 80% of the Disgorgement Fund ($160,000), the Plan Administrator shall distribute pro rata the remainder of the Disgorgement Fund to all Claimants who returned a valid Proof of Claim form ("Secondary Distribution"). The Secondary Distribution shall be calculated as follows: The remainder of the Disgorgement Fund shall be divided by the total number of shares of PHC common stock purchased by all Claimants who returned a valid Proof of Claim, yielding a second per-share amount. Each such Claimant's second pro rata distribution shall be calculated by multiplying the total number of shares of PHC common stock purchased in that Claimant's Affected Account by the second per-share amount. All pro rata distributions shall be rounded to the nearest dollar ($1.00). In no event shall the sum of any claimant's Initial and Secondary Distributions be greater than the total number of shares of PHC common stock in their Affected Accounts multiplied by $1.836 ($750,000/408,500).

C. IDENTIFICATION AND LOCATION OF CLAIMANTS

  1. On the basis of its investigation, and using records and information provided by Respondents and others, the Division has identified all potential Affected Accounts and Claimants. Using information provided by Respondents and others and any information obtained as a result of publication of notices of the Division's proposed Distribution Plan, the Division has compiled, and will continue to update, a list of the Claimants' last known addresses.
     
  2. By February 28, 2002, the Administrator had caused Proof of Claim forms, substantially in the form of Exhibit A hereto, to be sent to all Claimants by First Class Mail, requesting Claimants to send in completed Proof of Claim forms within 45 days.
     
  3. The Administrator has caused reasonable efforts, including the use of commercial computer databases, to be made to locate any Claimants whose Proof of Claim forms have been returned by the Post Office as undeliverable or whose Proof of Claim forms have not been returned. Within 10 days after the approval of this Amended Plan, the Administrator shall cause a notice to be published on the Commission website informing all potential claimants of the Amended Plan. (the "Notice")

D. DISTRIBUTION OF THE DISGORGEMENT FUND

  1. Within the first 10 days of the end of the calendar quarter following the Commission's approval of this Amended Plan of Disgorgement, the Administrator shall report to the Commission on the status of the distribution, including (a) the number of Claimants who were sent Proof of Claim forms, (b) the number of Claimants submitting completed Proof of Claim forms, (c) the number of Proof of Claim forms returned as undeliverable, and (d) the steps taken to locate Claimants whose Proof of Claim forms were returned as undeliverable ("Quarterly Report"). The Administrator shall thereafter submit a Quarterly Report to the Commission within 10 days of the end of each subsequent quarter until the Disgorgement Fund is terminated as described in paragraph 12 below.
     
  2. Simultaneous with the submission to the Commission of this Amended Plan of Disgorgement, the Administrator has applied to the Commission for an order approving a distribution to all claimants who, at that point in time, have returned valid Proof of Claim forms.
     
  3. When the Administrator concludes that all Claimants who can be located through reasonable efforts have been located, and that it is appropriate to terminate the Disgorgement Fund, she shall apply to the Commission for an order approving the Secondary Distribution, if any, to all Claimants who have returned valid Proof of Claim forms, terminating the Disgorgement Fund, and directing the payment of any remaining funds to the United States Treasury. The Administrator shall not seek a distribution under this paragraph until the Notice has been on the Commission web site for at least six months.

E. APPOINTMENT AND DUTIES OF ADMINISTRATOR

  1. Due to the manageable size of the Disgorgement Fund and limited pool of potential claimants, and in order to maximize the funds available for distribution, Leslie Kazon, Esq., an Assistant Regional Director in the Division's Northeast Regional Office, shall be appointed Administrator of the Disgorgement Fund.
     
  2. The Administrator shall carry out the duties specified by this Plan of Distribution including the following:
     
    a.identification of all Affected Accounts;
    b.identification of all Claimants;
    c.calculation of the dollar amount to be allocated to each Claimant based on the number of PHC shares purchased in the Affected Accounts through the March 3, 1994 batched transactions;
    d.reasonable efforts to identify and locate Claimants;
    e.the filing of any forms or reports for the Disgorgement Fund as may be required to be filed under the Internal Revenue Code;
    f.the mailing to each Claimant receiving a distribution any forms or reports as may be required under the Internal Revenue Code; and
    g.the submission of the reports specified in Paragraph 10 above.

    In carrying out her duties, the Administrator may be assisted by other Commission staff acting under her supervision. In addition, the Administrator shall be entitled to rely on information provided by Respondents concerning the identification of the Affected Accounts and Claimants, as well as the number of PHC shares purchased in the Affected Accounts in the March 3, 1994 batched transactions.
     
  3. Other than the reports specified in Paragraph 10 above, the Administrator shall not be required to report or account to the Commission.
     
  4. Pursuant to Rule 614(c) of the Commission's Rules of Practice, 17 C.F.R. 201.614(c), the Administrator shall receive no compensation, other than her regular salary as an employee of the Commission, for her services in administering the Disgorgement Fund.
     
  5. The Administrator shall be entitled to rely on any orders issued in this proceeding by the Commission, the Secretary by delegated authority, or an Administrative Law Judge, and may not be held liable to any person for any act or omission to act in the course of administering the Disgorgement Fund, except upon a finding by the Commission or an Administrative Law Judge in this proceeding of gross negligence or willful failure to comply with the terms of the Distribution Plan or any orders issued in this proceeding.

 


EXHIBIT A

[Webmaster note: The Proof of Claim form is available in PDF format.]

 

EXHIBIT B

Name of Claimant No of Shares Dollar Amount
AARNELL FUNDING CORP PEN PL 2,250 $ 1,102
AARON FAMILY IRREVOCABLE TRUST 1,300 $  636
ALBERT HENDERSON AND300 $  147
ALFRED C BEVILACQUA AND300 $  147
ALFRED DEMKO AND400 $  196
ALLA RESMAN C/F200 $  98
ALOYSIUS J AHEARN300 $  147
ALVIN GLICKMAN600 $  294
ANDREW MARTINGANO 1,000 $  490
ANDREW ROBERTS (IRA) 1,400 $  685
ANGELO SOUKAS300 $  147
ANN PAPACCIOLI300 $  147
ANTHONY J DISANTI MD 5,000 $ 2,448
ANTHONY LOTITO AND500 $  245
ARTHUR A. MCTIGHE ESQ, EXECUTOR300 $  147
AUGUSTUS HALL 1,000 $  490
AURORA H MONTINI150 $  73
AYAD NJADEH500 $  245
BAIYING GUO500 $  245
BANAVARA MYLARI MD500 $  245
BARBARA LAMB 7,500 $ 3,672
BARRY L STRAUSS750 $  367
BARRY ROSENBERG 1,000 $  490
BELVIN STANISLAUS AND 1,900 $  930
BERNARD EGAN AND200 $  98
BERNARD ZICHERMAN500 $  245
BETTY GLICKMAN300 $  147
BEVERLY WESTON100 $  49
BRUCE GREENSPAHN500 $  245
BYRON LASSIN 1,750 $  857
CARL ROMEO AND600 $  294
CARLOS TAPIA AND500 $  245
CARMEN C GINSBERG500 $  245
MARY PIGNATARO EXECUTRIX200 $  98
CAROL ANN PISANI500 $  245
CAROL R SCHWARZMAN (IRA)400 $  196
CAROL R SCHWARZMAN AND300 $  147
CHARLES M ALBANESE 1,500 $  734
COLETTE JEMMOTT350 $  171
CORINNE P BORRUP (IRA)400 $  196
DALE O EARNEST300 $  147
DAN ECKARD AND500 $  245
DANIEL BEGALMAN AND300 $  147
DANIEL RENN500 $  245
DAVID C ANTHONY JR AND 1,900 $  930
DAVID PALER500 $  245
DAVID PALER SEP (IRA)200 $  98
DAVID SHUTVET AND100 $  49
DAVID ULRICH AND400 $  196
DIAN R KISH300 $  147
DIANE KAPIKIAN500 $  245
DOMINICK D BAX300 $  147
DONALD EATON JR AND300 $  147
DOROTHEA ANN FAST, EXECUTRIX500 $  245
DOROTHY BOROSON500 $  245
EASTON A BELL AND500 $  245
ED SCHEER MD (IRA)100 $  49
EDWARD C SENSOR750 $  367
EDWARD M FISHEL AND200 $  98
EDWARD SARTI MD AND500 $  245
EDWARD SCHRAG (IRA)250 $  122
EILEEN M SCANDRETT500 $  245
ELIZABETH GAY500 $  245
ELIZABETH M RAMONAS (IRA)750 $  367
ELIZABETH MORRONE750 $  367
ELVIRA A LOHMANN500 $  245
EMILY M ROCK, EXECUTRIX500 $  245
ERIC BAUER600 $  294
ERIC MITNICK400 $  196
EVELYN CARLSON AND600 $  294
EVELYN CARLSON AND600 $  294
F CLARE MASELLI600 $  294
FELICE ODDO500 $  245
FELICIA SAGER 1,800 $  881
FRANCIS X OCONNOR750 $  367
FRANCO ODDO C/F300 $  147
FRANCO ODDO C/F500 $  245
FRANK CORBO AND300 $  147
FRANK RANERI 1,500 $  734
FRED FEINSTEIN AND500 $  245
GARRISON RUSHMORE CORWIN II750 $  367
GARY DEFILIPPIS250 $  122
GEORGE BALLY AND 3,500 $ 1,714
GEORGE KIMBLER AND300 $  147
GEORGE MARAFATSOS AND400 $  196
GERALD C RYERSON AND300 $  147
GLENN GRAVEL AND500 $  245
GORDON C KILTS AND300 $  147
GRACE L HAGERMAN (IRA)400 $  196
GREGORY MOTLOW 2,500 $ 1,224
HAROLD STARK AND750 $  367
HARRY H GASSON700 $  343
HARRY S SCOTT500 $  245
HELEN C TORO300 $  147
HENRY J BECKER 1,000 $  490
HERBERT MATMON AND300 $  147
HERMAN SAFTLAS600 $  294
HOMER E WARNER200 $  98
HONG CHAO YU 1,500 $  734
IGOR KATZ200 $  98
IRENE DE RUBERTIS AND400 $  196
IRIS C ANDERSON400 $  196
ISAAC ABADY200 $  98
J PAUL BOHEM200 $  98
JACK F HILL AND300 $  147
JAIME SOTO400 $  196
JAMES A ERICSON180 $  88
JAMES G KOUZOUKIAN DDS300 $  147
JAMES GARDEN DDS 1,000 $  490
JAMES GOSS300 $  147
JAMES MOOK600 $  294
JAMES N SCRENCI AND200 $  98
JAMES RIAL MD300 $  147
JAMIE SCHWARZMAN (IRA)475 $  233
JANET P COLE 1,450 $  710
JASON KLING200 $  98
JASON LO MONACO AND500 $  245
JEAN C WINTON600 $  294
JEAN COSENTINO AND750 $  367
JEFF T BOROWY (IRA)500 $  245
JERALD H COSSMAN300 $  147
JIN MEI CHENG300 $  147
JOAN PITTMAN500 $  245
JOHN A NOTARO400 $  196
JOHN C ALBANESE300 $  147
JOHN FALLARINO 3,500 $ 1,714
JOHN I SHEETZ500 $  245
JOHN K MEYERER700 $  343
JOHN KIRICK200 $  98
JOHN PAPA 1,200 $  588
JOHN PAPACCIOLI C/F500 $  245
JONATHAN SEIDT300 $  147
JOSEPH ODDO AND500 $  245
JOSEPH P IACONIS500 $  245
JOSEPH P IMMORDINO300 $  147
JUDITH ANN ALBANESE300 $  147
JULIAN GREENSPAN500 $  245
JULIE A ZIMMERMAN400 $  196
KATHRYN DROSENDAHL300 $  147
KEVIN PERDUE500 $  245
LAMUEL STANISLAUS500 $  245
LAWRENCE HILL300 $  147
LEONORA P WHILDIN300 $  147
LINDA ALBANESE300 $  147
LINDA BLOCH450 $  220
LINDA S BLOCH (IRA)225 $  110
LOUIS E TREMBLAY AND300 $  147
MAN-LUI YUEN200 $  98
MARCIA WITZEL AND500 $  245
MARCIE JILL ENGEL 1,500 $  734
MARGARET DOMINICK AND300 $  147
MARIA FARINA AND400 $  196
MARIA PAGANO AND500 $  245
MARIO PARREAGUIRRE AND300 $  147
MARION CHANEY300 $  147
MARK A COSMEDY SR (IRA)400 $  196
MARK DRZEWICKI AND200 $  98
MARK RUBIN 1,000 $  490
MARY CULTRERA AND500 $  245
MARY M LOUZIOTIS AND300 $  147
MAUDE DAVIS (F/N/A
MAUDE DAVIS ROWEHL) AND
350 $  171
MAX BITTAN300 $  147
MICHAEL J ZENIUCH AND500 $  245
MICHAEL P KOWAL400 $  196
MICHAEL PAGANO300 $  147
MITCHELL HEINE 1,500 $  734
MURRAY HEINOWITZ 1,200 $  588
NANCY RUTTER200 $  98
NATHAN KORNHAUSER500 $  245
NEIL BORIN300 $  147
NICHOLAS J TRANCHINA750 $  367
NIKOLAY CHECHIK350 $  171
PAT B GROTH400 $  196
PAUL GRAVEL AND500 $  245
PAUL MAMON500 $  245
PAUL P ESPOSITO AND300 $  147
PAULA A BEATON (IRA)300 $  147
PAULA ALEXANDER400 $  196
PAZ C BROWN AND500 $  245
PETER KONECKY 1,250 $  612
PETER RUGGIERI600 $  294
PHILIP DUBIN REVOCABLE TRUST300 $  147
PHILIP R DIAMOND AND 2,500 $ 1,224
RANDY T PEARCE500 $  245
RICARDO CASTRO400 $  196
RICHARD BEERY750 $  367
RICHARD ORTOLI 1,500 $  734
RICHARD SYLLA750 $  367
RITA EDWARDS (IRA)250 $  122
RITA RASPAOLO250 $  122
ROBERT A WARGO JR300 $  147
ROBERT A. MERLO, EXECUTOR 1,500 $  734
ROBERT BEATON AND400 $  196
ROBERT BERMAN AND 2,000 $  979
ROBERT DELANEY300 $  147
ROBERT M LIBUTTI SR400 $  196
ROBERT MARKOSKI150 $  73
ROBERT O'BRIEN200 $  98
ROBERT PITTMAN500 $  245
ROGER G BURRILL500 $  245
RON M GRIGOLETTO AND300 $  147
RONALD L ANDERSON (IRA)400 $  196
RONALD W PETTY AND300 $  147
ROSALIE GIBIAN AND400 $  196
ROSARIA REINA500 $  245
ROSE C WILLIAMS750 $  367
RUTH AVIS GARDNER200 $  98
SALAVTORE SPARACIO AND300 $  147
SALVATORE CONIGLIARO AND500 $  245
SAMUEL SUTTON AND500 $  245
SAMUEL GREEN200 $  98
SANTIAGO OLAGUIBEL300 $  147
SARAH SCHENCK500 $  245
SHERREE CUSHNER AND300 $  147
SHIRLEY SEGREE CUFFEE400 $  196
SIDNEY J BUXTON AND400 $  196
SIMON ATTIAS 1,000 $  490
SONDRA ROSENSTEIN AND500 $  245
SPECIALTY ADVERTISING
WITH FLYING COLORS INC.
200 $  98
STEPHEN BUSHANSKY300 $  147
STEPHEN COSENTINO AND500 $  245
STEPHEN J BABSON150 $  73
STEPHEN J PAVONE200 $  98
STUART D SAGER 1,800 $  881
SUSAN FITTER, EXECUTRIX300 $  147
SUSAN WASSER (IRA)750 $  367
SYLVIA FREEMAN400 $  196
THELMA C GREER AND300 $  147
THOMAS A BAIR300 $  147
THOMAS B PRATT REVOC LIVING TR500 $  245
THOMAS CARROLL500 $  245
THOMAS FENEZIANI300 $  147
USHA BHARDWAJ500 $  245
VINCENT CURRERI300 $  147
VINCENT J TERLIZZI AND400 $  196
VINCENT SPORTELLI600 $  294
VIRGINIA H EVERETT AND350 $  171
WALTER HAUEISEN (DECEASED)300 $  147
WALTER LIPES750 $  367
WALTER W FOX AND 3,000 $ 1,469
WARREN BILLS AND400 $  196
WILLIAM BEROZA 3,750 $ 1,836
WILLIAM D RICE (IRA)500 $  245
WILLIAM M BAILEY AND400 $  196
WILLIAM R LOIS MD250 $  122
WILLIAM T MURPHY AND200 $  98
WILLIAM TAUFMAN AND500 $  245
WILLIAM TRABOCCHI AND200 $  98
  155,480 $ 76,122

 

http://www.sec.gov/litigation/admin/33-8129.htm


Modified: 09/13/2002