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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 42556 / March 21, 2000

ADMINISTRATIVE PROCEEDING
FILE NO. 3-10165

______________________________ 
 : ORDER INSTITUTING PROCEEDINGS,
In the Matter of : MAKING FINDINGS AND IMPOSING
 : REMEDIAL SANCTIONS PURSUANT TO
TUSCHNER & COMPANY, INC.,: SECTIONS 15(b) and 19(h) OF THE
 : SECURITIES EXCHANGE ACT OF 1934
Respondent. :
______________________________:

I.

The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest and for the protection of investors that public administrative proceedings be instituted against Tuschner & Company, Inc. ("Tuschner") pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act").

II.

In anticipation of the institution of these proceedings, Tuschner & Company has submitted an Offer of Settlement ("Offer") 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 to which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except the Commission's findings set forth in Paragraphs III.A. and B., which are admitted, Tuschner & Company consents to the entry of this Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions pursuant to Sections 15(b) and 19(h) of the Exchange Act ("Order").

Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Sections 15(b) and 19(h) of the Exchange Act be and hereby are instituted.

III.

On the basis of this Order and Tuschner & Company's Offer, the Commission finds that:

A. Tuschner & Company was registered with the Commission as a broker-dealer from 1994 through 1999.

B. On March 9, 2000, in the case of SEC v. Nicholas A. Zahareas, et al., (Case No. 97-2859), the Honorable David Doty, United States District Judge for the District of Minnesota, entered an Order of Permanent Injunction against Tuschner & Company, pursuant to its consent and without Tuschner & Company's admitting or denying the allegations in the Commission's Complaint, enjoining Tuschner & Company from violating Section 15(b)(6)(B)(ii) of the Exchange Act. The Complaint alleged that Tuschner & Company associated with Nicholas A. Zahareas ("Zahareas") from June 1996 to December 1997, without the consent of the Commission, when it knew, or reasonably should have known, that Zahareas was a person subject to an order barring him from association with a broker or dealer. The Complaint further alleged that, as a result of the wrongful association, Tuschner & Company earned approximately $210,000.00 in gross commissions from sales to customers obtained through its association with Zahareas.

IV.

In light of the foregoing, it is appropriate in the public interest and for the protection of investors to impose the sanction specified in the Offer submitted by Tuschner & Company.

Accordingly, IT IS HEREBY ORDERED that Tuschner & Company's registration as a broker-dealer with the Commission be, and hereby is, revoked.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-42556.htm


Modified:03/24/2000