UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 42809 / May 23, 2000
File No. 3-10207
In the Matter of
: ORDER INSTITUTING PUBLIC
: ADMINISTRATIVE PROCEEDINGS
: PURSUANT TO SECTIONS 15(b)(6)
: AND 19(h) OF THE SECURITIES
: EXCHANGE ACT OF 1934, MAKING
: FINDINGS AND IMPOSING
: REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest and for the protection of investors that a public administrative proceeding be, and hereby is, instituted pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Arnold Zousmer ("Zousmer").
In anticipation of the institution of these administrative proceedings, Respondent has submitted an Offer of Settlement (the "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 in which the Commission is a party, and without admitting or denying the findings, except as to jurisdiction over him and the subject matter of these proceedings and as to paragraphs III.A. and III.B. below, which Respondent admits, Respondent consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (the "Order").
On the basis of this Order and the Respondent's Offer, the Commission makes the following findings:
A. Respondent, during all times relevant hereto, was a person associated with a registered broker-dealer.
B. On May 5, 2000, by Respondent's consent, in which he neither admitted nor denied any of the allegations of the complaint, except as to jurisdiction which he admitted, the United States District Court for the Middle District of Florida, in an action styled S.E.C. v. Corporate Relations Group, Inc., et al., C.A. No. 99-1222-CV-22-A (filed Sept. 27, 1999), entered a Final Judgment that permanently enjoined Respondent from violating Section 5 of the Securities Act of 1933, directed him to pay, jointly and severally with three other defendants in that action, disgorgement and prejudgment interest in the amount of $963,000, and directed him to pay a civil penalty of $15,000.
Based on the foregoing, the Commission deems it appropriate in the public interest and for the protection of investors to accept the Respondent's Offer and to impose the remedial relief specified in the Offer.
Accordingly, IT IS ORDERED, that Respondent Arnold Zousmer be, and hereby is, suspended from association with any broker or dealer for a period of three months, effective on the second Monday following the entry of this Order.
IT IS FURTHER ORDERED that Respondent shall provide to the Commission, within 30 days after the end of the three-month suspension period described above, an affidavit that he has complied fully with the sanctions described in this Order.
By the Commission.
Jonathan G. Katz
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