UNITED STATES OF AMERICA
|In the Matter of||: Order Instituting Public|
|: Proceedings, Making Findings|
|ROBERT A. SCHATZ,||: and Imposing Remedial Sanctions|
|: Pursuant to Section 15(b) of the|
|Respondent.||: Securities Exchange Act of 1934|
The Commission deems it appropriate and in the public interest that proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") be, and they hereby are, instituted against Robert A. Schatz ("Respondent") to determine whether remedial sanctions are necessary in light of the permanent injunction entered against Respondent by the United States District Court for the Southern District of New York on December 14, 1999, permanently restraining and enjoining Respondent from future violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], Section 17(a) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. § 77q(a)], and Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and 77e(c)].
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement for the purpose of disposing of the issues raised by these proceedings. The Commission has determined to accept Respondent's Offer of Settlement.
Solely for the purposes of this proceeding 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, except as to jurisdiction and as to paragraphs II.A and II.B below, which are admitted, Respondent consents to the issuance of this Order Instituting Public Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Exchange Act (the "Order").
II. Findings and Conclusions
The Commission finds that:
A. from 1991 through on or about December 22, 1994, Respondent was associated with Merrill Lynch, Pierce, Fenner & Smith, Inc., a broker-dealer registered with the Commission; and
B. a Final Judgment of Permanent Injunction was entered by the United States District Court for the Southern District of New York, in an action styled Securities and Exchange Commission v. Douglas G. McCaskey, et al., Civil Action No. 98-6153 (SWK) (S.D.N.Y., Judgment entered December 14, 1999), which permanently enjoins Respondent from future violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)], and Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and 77e(c)].
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of Settlement of Robert A. Schatz.
Accordingly, it is ordered that Respondent be, and he hereby is, barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
By the Commission.
Jonathan G. Katz
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