UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 41942 / September 29, 1999
File No. 3-10049
: ORDER INSTITUTING PUBLIC
In the Matter of : ADMINISTRATIVE PROCEEDINGS
: PURSUANT TO SECTION 15(b)
Sterling Foster & Company, Inc. and : OF THE SECURITIES
Adam Lieberman : EXCHANGE ACT OF 1934, MAKING
: FINDINGS AND IMPOSING
: REMEDIAL SANCTIONS>
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Sterling Foster & Company, Inc. ("Sterling Foster"), a broker-dealer registered with the Commission, and Adam Lieberman ("Lieberman").
In anticipation of the institution of this administrative proceeding, Sterling Foster and Lieberman have submitted Offers of Settlement ("Offers"), 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, Sterling Foster and Lieberman, without admitting or denying the findings contained in this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order"), except the findings set forth in Paragraphs IV.A., IV.B., IV.C. and IV.D. below, which they admit, each consent to the issuance of this Order and to the entry of the findings and the imposition of the remedial sanctions set forth below.
Accordingly, it is ordered that a public administrative proceeding pursuant to Section 15(b) of the Exchange Act be, and hereby is, instituted.
On the basis of this Order and the Offers, the Commission finds1 that:
A. Since June 1994, Sterling Foster has been a broker-dealer registered with the Commission.
B. Lieberman, age 31, is the founder, president and sole shareholder of Sterling Foster.
C. On February 14, 1997, the Commission filed a Complaint in SEC v. Sterling Foster, et al., 97 Civ. 1077 (S.D.N.Y. 1997) ("SEC v. Sterling Foster") alleging, among other things, that between October 1994 and February 1997, Sterling Foster and Lieberman obtained at least $75 million by manipulating the price of securities of six public companies and using a variety of fraudulent sales practices to sell those securities at artificially inflated prices to investors.
D. On November 11, 1998, Lieberman and Sterling Foster were each permanently enjoined on consent in SEC v. Sterling Foster, without admitting or denying the allegations of the Complaint, by the United States District Court for the Southern District of New York from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Sections 10(b) and 15(c)(1) of the Exchange Act and Rules 10b-3, 10b-5, 10b-6, 15c1-2 and 15c1-8.
E. Sterling Foster and Lieberman wilfully violated Section 17(a) of the Securities Act, Sections 10(b) and 15(c)(1) of the Exchange Act and Rules 10b-3, 10b-5, 10b-6, 15c1-2, and 15c1-8.
In view of the foregoing, the Commission finds it is in the public interest to accept Sterling Foster's and Lieberman's Offers and impose the sanctions set forth below.
Accordingly, it is hereby ordered that, effective immediately, Sterling Foster's registration with the Commission as a broker-dealer be, and hereby is, revoked; and
It is further ordered that, effective immediately, Lieberman be, and hereby is, barred from association with any broker-dealer.
By the Commission.
Jonathan G. Katz
Footnotes --The findings herein are made pursuant to Sterling Foster's and Lieberman's Offers of Settlement and are not binding on any other person or entity named as a respondent in this or any other proceeding.