SECURITIES EXCHANGE ACT OF 1934
Release No.43382 / September 28, 2000

ADMINISTRATIVE PROCEEDING
File No. 3-10326

In the Matter of

ALEX MOORE & CO., INC.,
LIVETRADE.COM, INC., and
MICHAEL WEISSMAN,

Respondent.

ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS, MAKING FINDINGS, IMPOSING REMEDIAL SANCTIONS AND ISSUING CEASE-AND-DESIST ORDER

I.

The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest that public administrative and cease-and-desist proceedings be instituted against Alex Moore & Co., Inc. ("Alex Moore"), Livetrade.com, Inc. ("Livetrade"), and Michael Weissman ("Weissman"), pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Exchange Act"). Accordingly, it is hereby ordered that proceedings pursuant to Sections 15(b) and 21C of the Exchange Act be, and hereby are, instituted.

II.

In anticipation of the institution of these proceedings, Alex Moore, Livetrade, and Weissman have submitted Offers of Settlement ("Offers"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings contained herein, except for the jurisdiction of the Commission over each of them and over the subject matter of these proceedings, which are admitted, Alex Moore, Livetrade, and Weissman each consentto the entry of the findings, a cease-and-desist order, and the imposition of the other sanctions set forth herein.

III.

On the basis of this Order and the Offers submitted by Alex Moore, Livetrade, and Weissman, the Commission finds that:1

Respondents

A. Alex Moore , which is located in Garden City, New York, is a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act. Alex Moore is a member of the National Association of Securities Dealers, Inc.

B. Livetrade is an online trading software provider located in Garden City, New York and is not registered with the Commission as a broker-dealer.

C. Weissman , age 43, is, and at all relevant times was, Livetrade's Chief Executive Officer ("CEO").

Related Party

D. Paul Nortman ("Nortman"), age 69, was, at all relevant times, responsible for the preparation of general ledgers, trial balances, and other information used to prepare Alex Moore FOCUS reports and made most executive decisions regarding Alex Moore. Through conveyances from their father, Mr. Nortman's daughters owned a majority interest in Alex Moore.

Summary

E. As more fully described below, from May 1998 through December 1999, Livetrade and Alex Moore, pursuant to an arrangement negotiated by Weissman and Nortman, jointly provided online securities trading services. Although Alex Moore was registered with the Commission as a broker-dealer, Livetrade was not. Consequently, Livetrade willfully2 violated Section 15(a)(1) of theExchange Act, and Weissman, and Alex Moore each willfully aided and abetted, and was a cause of, those violations.

F. Additionally, Alex Moore failed to account properly for certain assets and liabilities relating to its online securities trading activities. Specifically, Alex Moore: (1) failed to record on its books and records certain accounts payable and certain accounts receivable; (2) reported inaccurate accounts payable and/or accounts receivable in several FOCUS reports; and (3) failed to provide notice to the Commission of those inaccuracies. Consequently, Alex Moore willfully violated Section 17(a) of the Exchange Act and Rules 17a-3, 17a-5, and 17a-11.

Violations of the Broker-Dealer Registration Provision

G. With certain exceptions not applicable here, Section 15(a) of the Exchange Act makes it unlawful for any non-natural person to sell securities without being registered with the Commission as a broker-dealer. Livetrade, which is not a natural person, acted as an unregistered broker-dealer by providing online trading services jointly with Alex Moore. Nortman and Weissman, on behalf of Alex Moore and Livetrade, respectively, negotiated the terms under which the two companies jointly provided online trading services. Under that arrangement:

    (1) Livetrade:

      (a) actively solicited customers by maintaining a web site and by advertising on radio, television, and the Internet; 3

      (b) sent out brokerage account opening documents to prospective customers in Livetrade envelopes, directed customers to return the completed forms to Livetrade, and delivered the completed account opening forms to Alex Moore;

      (c) provided the online trading software;

      (d) provided the software used to route customer orders to buy and sell securities to the electronics communications network ("ECN") for execution;

      (e) paid the majority of Alex Moore's expenses for overhead; and

      (f) received transaction-based compensation.

    (2) Alex Moore:

      (a) acted as the broker-dealer of record for trades executed by customers utilizing Livetrade's software;

      (b) maintained customer accounts;

      (c) established the clearing arrangement;

      (d) received from its clearing firm commissions and other fees paid by customers utilizing Livetrade's software;

      (e) used the funds received from the clearing firm to pay certain of Alex Moore's expenses; and

      (f) paid transaction-based compensation and reimbursement of costs to Livetrade pursuant to oral agreement.

Indeed, Livetrade received the majority of the transaction-based fees that Alex Moore/Livetrade customers paid for securities transactions.

H. As a result of the foregoing, Livetrade willfully violated Section 15(a) of the Exchange Act. Weissman and Alex Moore each willfully aided and abetted, and was a cause of, Livetrade's violations of Section 15(a)(1) of the Exchange Act, in that:

    (1) Weissman:

      (a) considered whether to register Livetrade as a broker-dealer, but decided against it;

      (b) negotiated Livetrade's arrangement with Alex Moore;

      (c) oversaw Livetrade's solicitation of customers;

      (d) oversaw the process wherein Livetrade sent out brokerage account opening documents to prospective customers in Livetrade envelopes, directed customers to return the completed forms to Livetrade and delivered the completed account opening forms to Alex Moore;

      (e) caused Livetrade to pay the majority of overhead expenses of Alex Moore; and

      (f) negotiated Livetrade's receipt of transaction-based compensation.

    (2) Alex Moore:

      (a) negotiated with Livetrade and entered into the arrangement described above;

      (b) knew that under the terms of that arrangement Livetrade was, among other things, soliciting customers to open accounts, routing customer trades to an ECN for execution, and receiving transaction-based compensation; and

      (c) approved Alex Moore's payment of transaction-based compensation to an unregistered person, namely Livetrade.

Violations of the Record-Keeping and Financial Reporting Provisions

I. Section 17(a) of the Exchange Act and Rule 17a-3 require registered broker-dealers to make and keep books and records relating to its securities activities, including trial balances and general ledgers. That such records must be accurate is implicit. In re Merrill Lynch, Pierce, Fenner & Smith, Inc. , Exchange Act Release No. 33367 (Dec. 22, 1993), 55 SEC Docket 1970 (Jan. 11, 1994). Section 17(a) of the Exchange Act and Rule 17a-5 require registered broker-dealers to file periodic reports, which include financial statements. Those reports also must be accurate. Section 17(a) of the Exchange Act and Rule 17a-11 require registered broker-dealers to notify the Commission that same day of any inaccuracies in its required books and records, and to file a report within forty-eight hours of the notice stating what it had done or is doing to correct the situation.

J. From May 1998 through December 1998, Alex Moore created and maintained inaccurate trial balances and general ledgers by failing to record:

    (1) amounts that Alex Moore was owed by its clearing firm; and

    (2) amounts that Alex Moore owed to Livetrade and the ECN.

K. Alex Moore did not notify the Commission at any time between May 1998 and December 1998 that its trial balances and general ledgers were inaccurate. Alex Moore also failed to file a report with the Commission at any time between May 1998 and December 1998 stating what it had done or was doing to correct the situation.

L. Similarly, Alex Moore failed to include:

    (1) the correct accounts receivable from its clearing firm in Alex Moore's FOCUS reports for the quarters ended June 30, 1998 and September 30,1998; and

    (2) the correct accounts payable to Livetrade and the ECN in Alex Moore's FOCUS reports for the quarters ended June 30, 1998 and September 30, 1998, and the year ended December 31,1998.

M. Accordingly, Alex Moore willfully violated Section 17(a) of the Exchange Act and Rules 17a-3, 17a-5, and 17a-11 thereunder.

IV.

In view of the foregoing, it is in the public interest to impose the sanctions specified in the Offers of Settlement.

A. Accordingly, IT IS HEREBY ORDERED that:

1. Livetrade be, and hereby is, censured;

2. Livetrade cease and desist, pursuant to Section 21C of the Exchange Act, from committing or causing any violation and any future violation of Section 15(a) of the Exchange Act; and

3. Livetrade shall, within thirty days of the entry of this Order, pay a civil money penalty in the amount of $50,000 to the United States Treasury. Such payment shall be: (1) made by United States postal money order, certified check, bank cashier's check, or bank money order; (2) made payable to the Securities and Exchange Commission; (3) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and (4) submitted under cover letter which identifies Livetrade as a Respondent in this proceeding, and the Commission's case number, a copy of which cover letter and money order or check shall be sent to Leslie Kazon, Assistant Regional Director, Northeast Regional Office, Securities and Exchange Commission, 7 World Trade Center, 13th Floor, New York, N.Y. 10048.

B. IT IS FURTHER ORDERED, that:

1. Weissman be, and hereby is, censured;

2. Weissman cease and desist, pursuant to Section 21C of the Exchange Act, from committing or causing any violation and any future violation of Section 15(a) of the Exchange Act; and

3. Weissman shall, within thirty days of the entry of this Order, pay a civil money penalty in the amount of $10,000 to the United States Treasury. Such payment shall be: (1) made by United States postal money order, certified check, bank cashier's check, or bank money order; (2) made payable to the Securities and Exchange Commission; (3) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and (4) submitted under cover letter which identifies Weissman as a Respondent in this proceeding, and the Commission's case number, a copy of which cover letter and money order or check shall be sent to Leslie Kazon, Assistant Regional Director, Northeast Regional Office, Securities and Exchange Commission, 7 World Trade Center, 13th Floor, New York, N.Y. 10048.

C. IT IS FURTHER ORDERED, that:

1. Alex Moore be, and hereby is, censured;

2. Alex Moore cease and desist, pursuant to Section 21C of the Exchange Act, from committing or causing any violation and any future violation of Sections 15(a) and 17(a) of the Exchange Act and Rules 17a-3, 17a-5, and 17a-11 thereunder; and

3. Alex Moore shall, within thirty days of the entry of this Order, pay a civil money penalty in the amount of $25,000 to the United States Treasury. Such payment shall be: (1) made by United States postal money order, certified check, bank cashier's check, or bank money order; (2) made payable to the Securities and Exchange Commission; (3) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and (4) submitted under cover letter which identifies Alex Moore as a Respondent in this proceeding, and the Commission's case number, a copy of which cover letter and money order or check shall be sent to Leslie Kazon, Assistant Regional Director, Northeast Regional Office, Securities and Exchange Commission, 7 World Trade Center, 13th Floor, New York, N.Y. 10048.

By the Commission.

Jonathan G. Katz
Secretary


Footnotes

1 The findings herein are made pursuant to Respondents' Offers and are not binding on any other person or entity in this or any other proceeding.

2 In applying the term "willful" in Commission administrative proceedings instituted pursuant to Sections 15(b), 15B, 15C, 17A, and 19(h) of the Securities Exchange Act, Section 9 of the Investment Company Act, and Section 203 of the Investment Advisers Act, the Commission evaluates on a case-by-case basis whether the respondent knew or reasonably should haveknown under the particular facts and circumstances that his conduct was improper. In this case, as in all Commission administrative proceedings charging a willful violation under these statutory provisions, the Commission applies this standard to persons -- specifically, securities industry professionals -- who are directly subject to Commission jurisdiction and who have a responsibility to understand their duties to the investing public and to comply with the applicable rules and regulations which govern their behavior.

3 Customers accessing the website represent almost all of Alex Moore's customers. Prior to entering into its arrangement with Livetrade, Alex Moore was a broker-dealer with limited activity.