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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. 44384 / June 4, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10500


In the Matter of

Scott N. Draime,

Respondent.


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ORDER INSTITUTING CEASE-
AND-DESIST PROCEEDINGS
PURSUANT TO SECTION 21C OF
THE SECURITIES EXCHANGE ACT
OF 1934 AND FINDINGS AND
ORDER OF THE COMMISSION

I.

The Commission deems it appropriate that public administrative proceedings be, and they hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether Scott N. Draime ("Draime") violated Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

II.

In anticipation of the institution of these administrative proceedings, Draime ("the Respondent") has submitted an Offer of Settlement 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 to which the Commission is a party, the Respondent, without admitting or denying the matters set forth herein, consents to the issuance of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("the Order"), and to the entry of the findings, and imposition of the remedial sanctions set forth below.

III.

On the basis of this Order and the Respondent's Offer of Settlement ("Offer"), the Commission finds the following:

A. FACTS

1. Respondent

Scott N. Draime was at relevant times a beneficial owner of more than ten percent of the equity securities of Stoneridge, Inc. ("Stoneridge").

2. ISSUER

Stoneridge, Inc., an Ohio corporation with principal offices in Warren, Ohio, is a designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the automotive, medium and heavy-duty truck, and agricultural vehicle markets. According to Stoneridge's Annual Report on Form 10-K for the year ended December 31, 2000, Stoneridge had total assets of over $696 million and shareholders' equity of over $262.1 million as of December 31, 2000. Stoneridge had 22,397,311 shares of common stock outstanding as of March 22, 2001. Stoneridge reported net income of approximately $32.7 million, or $1.46 per common share, for its 2000 fiscal year. Stoneridge's common stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act, and is traded on the New York Stock Exchange.

B. APPLICABLE LAW

Section 13(g) of the Exchange Act and Rule 13d-1(c) thereunder, in relevant part, require any person who, as of December 31, 1978 or as of the end of any calendar year thereafter, beneficially owns more than 5 percent of any equity security of a company registered pursuant to Section 12 of the Exchange Act, and who is not otherwise required to file a Schedule 13D, to file a Schedule 13G with the Commission within 45 days of the end of the calendar year in which the obligation arises. Rule 13d-2(b) provides that yearly amendments shall be filed to Schedule 13G reporting changes in the information previously reported.

Section 16(a) of the Exchange Act requires that beneficial owners of more than ten percent of any class of any equity security registered pursuant to Section 12 of the Exchange Act and the officers and directors of the issuer of any such security (hereinafter "insider") file a statement with the Commission by the effective date of a registration statement filed pursuant to Section 12 of the Exchange Act, or within ten days of becoming such officer, director or beneficial owner, reporting the amount of all equity securities of such issuer of which they are a beneficial owner. Section 16(a) also requires an insider to file with the Commission within ten days after the close of each calendar month, if there has been a change in the insider's ownership of the issuer's equity securities during such month, a statement indicating such changes. The rules enacted pursuant to Section 16(a) provide that an initial statement by an insider is to be made on a Form 3 and subsequent statements of changes in beneficial ownership are to be made on a Form 4 or a Form 5.

C. DRAIME'S VIOLATIONS OF SECTIONS 13(g) and 16(a) OF THE EXCHANGE ACT AND THE RULES THEREUNDER

In connection with changes in his ownership of Stoneridge securities, Draime failed to timely file two amendments to Schedule 13G for three weeks and one year and three weeks respectively. In addition, Draime failed to timely file fifteen Forms 4 (which were late for periods ranging from one week to more than ten months), and one Form 5, which was filed more than four months late. The total value of the transactions in Stoneridge stock for which Draime filed late Forms 4 and 5 is approximately $8.8 million.

Draime's history of delinquency, compiled from the ownership reports he has filed with the Commission for Stoneridge, is set forth below:

SCOTT N. DRAIME

Forms 3, 4 and 5 For Holdings and
Transactions in the Equity Securities of

Stoneridge, Inc.

August 13, 1998 through June 23, 2000

Month
of
Trans.
Type No. of
Shares
Price
per
Share*
Total
$Value
Date
Due/
Date
Rec'd
Apprx.
Yrs/Mos/
Wks.Late
 
  Form 3            
08-98 818,240 (Indirect, c/s)   08-13-98 T  
  132,000 (direct, c/s)   08-13-98    
  Forms 4, 5            
08-98 Buy 10,000 19.00 190,000 09-10-98 T  
    10,000 18.25 182,500 09-10-98    
09-98 Buy 5,000 18.00 90,000 10-13-98 T  
    5,000 17.56 87,800 10-02-98    
    10,000 15.50 155,000      
    10,000 15.00 150,000      
09-98 Buy 5,000 17.50 87,500 10-13-98 3m3w  
    5,000 17.44 87,200 02-03-99    
        174,700      
09-98 Buy 1,000 15.00 15,000 10-13-98 3w  
    2,000 15.13 30,260 11-09-98    
    600 15.38 9,228      
    1,000 15.94 15,940      
    600 15.88 9,528      
        79,956      
10-98 Buy 1,500 15.50 23,250 11-10-98 T  
    10,000 14.50 145,000 11-09-98    
    10,000 14.00 140,000      
    10,000 14.00 140,000      
    2,300 14.94 34,362      
11-98 Buy 10,000 16.00 160,000 12-10-98 T  
    2,000 15.97 31,940 11-09-98    
    15,000 16.00 240,000      
    7,000 16.00 112,000      
11-98 Buy 10,000 16.00 160,000 12-10-98 T  
    4,000 15.75 63,000 12-10-98    
    2,000 16.00 32,000      
    300 15.69 4,707      
    1,700 15.94 27,098      
    100 15.63 1,563      
    2,000 17.56 35,120      
    400 18.00 7,200      
    100 17.94 1,794      
    300 18.25 5,475      
    500 17.50 8,750      
    300 17.38 5,214      
    1,500 18.00 27,000      
    1,700 18.25 31,025      
11-98 Buy 700 17.88 12,516 12-10-98 1m3w  
          02-03-99    
12-98 Buy 5,000 19.25 96,250 01-11-99 T  
    1,000 19.00 19,000 01-08-99    
    3,200 19.63 62,816      
    2,000 21.00 42,000      
    1,800 20.31 36,558      
    600 21.00 12,600      
    400 20.93 8,372      
    600 21.00 12,600      
    400 21.00 8,400      
    1,000 21.00 21,000      
             
12-98 Buy 1,300 17.88 23,244 01-11-99 3w  
    2,000 17.94 35,880 02-03-99    
    5,000 17.75 88,750      
    1,100 17.50 19,250      
    3,500 17.75 62,125      
        229,249      
               
01-99 Buy 2,000 22.19 44,380 02-10-99 T  
    3,000 21.50 64,500 02-10-99    
    6,000 21.00 126,000      
    1,900 20.88 39,672      
    100 21.00 2,100      
    2,000 21.13 42,260      
    200 20.94 4,188      
    1,200 20.50 24,600      
    300 20.69 6,207      
    1,800 21.00 37,800      
    1,100 20.88 22,968      
    1,000 20.94 20,940      
    1,900 21.00 39,900      
    400 20.50 8,200      
    1,700 20.75 35,275      
    1,000 21.13 21,130      
    400 20.50 8,200      
    7,000 20.38 142,660      
    2,000 19.13 38,260      
    2,000 19.25 38,500      
    6,000 19.38 116,280      
    1,000 18.63 18,630      
    1,000 18.38 18,380      
    2,000 18.75 37,500      
    3,000 18.88 56,640      
    1,000 18.50 18,500      
               
02-99 Buy 500 17.75 8,875 03-10-99 T  
    500 17.88 8,940 03-10-99    
    500 18.44 9,220      
    500 18.38 9,190      
    1,000 18.38 18,380      
    1,000 18.00 18,000      
    3,900 17.50 68,250      
    200 17.81 3,562      
    100 16.88 1,688      
    200 17.00 3,400      
    200 17.13 3,426      
    500 17.38 8,690      
    1,000 17.31 17,310      
    1,000 17.50 17,500      
    500 17.63 8,815      
    500 17.75 8,875      
    1,000 17.69 17,690      
    400 16.63 6,652      
    500 16.75 8,375      
               
03-99 Buy 7,000 14.00 98,000 04-12-99 2w  
    500 13.50 6,750 04-27-99    
    500 13.75 6,875      
    7,000 13.75 96,250      
    5,000 13.88 69,400      
        277,275      
               
04-99 Buy 1,200 13.75 16,500 05-10-99 T  
    1,800 13.94 25,092 05-10-99    
    2,000 14.00 28,000      
    6,000 14.38 86,280      
    2,000 14.50 29,000      
    3,000 16.25 48,750      
    2,000 16.38 32,760      
    600 16.44 9,864      
    400 16.31 6,524      
    2,000 16.13 32,260      
    1,300 17.75 23,075      
    500 17.63 8,815      
    1,000 16.88 16,880      
    500 16.69 8,345      
    1,000 16.19 16,190      
    1,000 16.63 16,630      
    1,000 16.75 16,750      
               
05-99 Buy 2,000 16.25 32,500 06-10-99 T  
    1,000 16.38 16,380 06-09-99    
    1,000 16.25 16,250      
    500 16.50 8,250      
    4,000 15.94 63,760      
    6,000 16.00 96,000      
    6,000 15.81 94,860      
    2,200 15.75 34,650      
    2,600 15.50 40,300      
    3,000 15.94 47,820      
    1,000 15.69 15,690      
    200 15.63 3,126      
    400 15.25 6,100      
    1,000 16.00 16,000      
    4,000 16.06 64,240      
               
06-99 Buy 2,000 14.56 29,120 07-12-99 T  
    500 14.00 7,000 07-12-99    
               
07-99 ale 5,000 16.00 80,000 08-10-99 T  
          08-13-99    
               
07-99 Buy 1,000 15.44 15,440 08-10-99 10m1w  
    6,000 15.50 93,000 06-23-00    
    300 15.88 4,764      
    4,700 15.50 72,850      
    3,000 15.63 46,890      
    1,000 15.75 15,750      
    1,000 15.81 15,810      
    3,000 15.88 47,640      
    1,000 16.00 16,000      
    2,000 16.03 32,060      
    1,000 16.13 16,130      
    1,000 16.06 16,060      
    3,000 16.13 48,390      
    500 16.38 8,190      
    500 16.44 8,220      
    500 16.50 8,250      
    500 16.63 8,315      
        473,759      
               
08-99 Buy 1,000 16.25 16,250 09-10-99 9m1w  
    5,100 17.75 90,525 06-23-00    
    1,000 17.75 17,750      
    500 17.69 8,845      
    500 17.81 8,905      
    500 17.88 8,940      
    2,500 17.94 44,850      
    700 18.00 12,600      
    600 18.25 10,950      
        219,615      
               
09-99 Buy 1,000 17.88 17,880 10-12-99 8m1w  
    500 18.06 9,030 06-23-00    
    400 17.50 7,000      
    500 17.69 8,845      
    500 17.75 8,875      
    500 17.81 8,905      
    500 17.94 8,970      
    5,000 17.63 88,150      
    1,000 17.75 17,750      
    1,000 18.00 18,000      
    1,000 18.06 18,060      
    400 18.75 7,500      
    1,000 17.81 17,810      
    1,200 17.88 21,456      
    500 17.94 8,970      
    300 17.94 5,382      
    2,500 18.00 45,000      
    500 17.69 8,845      
    1,000 17.88 17,880      
    1,000 17.94 17,940      
    200 17.81 3,562      
    1,800 17.50 31,500      
    500 17.63 8,815      
    300 17.75 5,325      
    200 17.13 3,426      
    200 17.25 3,450      
    200 17.63 3,526      
    200 17.44 3,488      
        425,340      
               
10-99 Buy 700 16.94 11,858 11-10-99 7m1w  
    200 17.00 3,400 06-23-00    
    200 16.94 3,388      
    400 16.50 6,600      
    700 16.31 11,417      
        36,663      
               
11-99 ale 1,000 13.00 13,000 12-10-99 6m1w  
          06-23-00    
               
12-99 ale 500 13.13 6,565 01-10-00 5m1w  
    500 13.63 6,815 06-23-00    
    500 13.75 6,875      
    200 13.88 2,776      
    400 13.38 5,352      
    400 13.25 5,300      
    3,000 13.31 39,930      
    3,000 13.50 40,500      
    5,000 13.63 68,150      
    500 13.75 6,875      
    1,000 13.63 13,630      
    2,000 14.50 29,000      
    1,000 14.75 14,750      
    1,000 15.19 15,190      
    1,000 16.00 16,000      
    1,000 16.06 16,060      
    2,000 15.63 31,260      
        325,028      
               
FY-99 Form 5       02-14-00 4m1w  
          06-23-00 1    
               
01-00 Buy 3,000 15.00 45,000 02-10-00 4m1w  
    200 13.25 2,650 06-23-00    
    200 13.44 2,688      
    200 13.31 2,662      
    200 13.50 2,700      
    300 13.63 4,089      
    200 13.69 2,738      
    200 12.69 2,538      
    400 12.88 5,152      
    200 13.19 2,638      
    200 12.75 2,550      
    200 12.81 2,562      
    200 12.94 2,588      
        80,555      
               
02-00 Buy 1,000 10.75 10,750 03-10-00 3m1w  
    2,500 10.13 25,325 06-23-00    
    1,500 9.84 14,775      
    600 9.88 5,928      
    1,500 9.54 14,310      
    500 9.88 4,940      
    200 10.38 2,076      
        78,104      
               
03-00 Buy 200 10.75 2,150 04-10-00 2m1w  
    800 11.25 9,000 06-23-00    
    200 11.44 2,288      
    2,600 10.50 27,300      
    1,600 10.75 17,200      
    1,500 10.81 16,215      
    1,800 10.88 19,584      
    1,500 10.94 16,410      
    100 11.00 1,100      
    500 10.13 5,065      
    200 10.19 2,038      
    200 10.56 2,112      
    100 10.69 1,069      
    300 10.94 3,282      
    300 10.44 3,132      
    200 10.31 2,062      
    1,000 10.75 10,750      
    1,000 10.81 10,810      
    200 11.13 2,226      
    1,300 11.38 14,794      
    500 11.63 5,815      
    1,000 11.25 11,250      
    200 11.00 2,200      
    800 10.38 8,304      
    200 9.88 1,976      
    700 10.88 7,616      
    700 11.00 7,700      
    200 11.13 2,226      
    200 11.25 2,250      
    500 11.31 5,655      
    700 11.38 7,966      
    400 11.06 4,424      
    2,100 11.38 23,898      
    1,500 11.44 17,160      
    2,200 11.50 25,300      
    2,100 11.63 24,423      
    700 11.75 8,225      
    2,000 11.88 23,760      
    1,000 11.94 11,940      
    2,000 12.00 24,000      
    200 12.00 2,400      
    300 12.13 3,639      
    1,800 12.25 22,050      
    500 12.31 6,155      
    500 12.38 6,190      
    1,200 12.44 14,928      
    3,000 12.50 37,500      
    1,000 12.63 12,630      
    500 12.00 6,000      
    400 12.13 4,852      
        511,019      
               
04-00 Buy 500 10.13 5,065 05-10-00 1m1w  
    500 10.19 5,095 06-23-00    
    1,100 10.25 11,275      
    600 10.38 6,228      
    4,300 10.50 45,150      
    1,000 10.63 10,630      
    500 11.25 5,625      
    500 11.31 5,655      
    500 11.50 5,750      
    1,500 11.94 17,910      
    500 12.25 6,125      
    500 12.50 6,250      
    1,000 12.63 12,630      
    500 12.69 6,345      
    500 12.81 6,405      
    100 12.88 1,288      
    400 13.00 5,200      
    200 12.81 2,562      
    200 12.88 2,576      
    200 13.00 2,600      
    400 13.19 5,276      
    500 13.25 6,625      
    500 13.38 6,690      
    500 13.44 6,720      
    2,500 13.50 33,750      
    3,000 13.63 40,890      
    1,000 13.75 13,750      
    600 13.44 8,064      
    400 13.50 5,400      
    400 13.56 5,424      
    1,700 13.63 23,171      
    900 13.75 12,375      
    1,200 12.94 15,528      
    200 13.25 2,650      
    400 13.50 5,400      
    400 13.75 5,500      
    200 13.19 2,638      
    200 13.31 2,662      
    1,800 13.38 24,084      
    3,800 13.44 51,072      
    2,800 13.50 37,800      
    3,000 13.56 40,680      
    200 13.63 2,726      
    3,000 13.69 41,070      
    1,500 13.56 20,340      
    1,100 13.63 14,993      
    6,200 13.69 84,878      
    2,700 13.75 37,125      
    200 13.63 2,726      
    800 13.69 10,952      
    1,000 13.63 13,630      
    1,000 13.69 13,690      
    1,000 13.25 13,250      
    200 13.38 2,676      
    400 13.44 5,376      
    1,100 13.50 14,850      
    700 13.56 9,492      
    200 13.63 2,726      
    2,400 13.69 32,856      
    1,200 13.56 16,272      
    800 13.69 10,952      
    200 13.75 2,750      
    600 13.88 8,328      
    1,600 13.94 22,304      
    2,400 14.00 33,600      
    1,000 13.94 13,940      
    3,000 14.00 42,000      
    1,500 14.06 21,090      
    1,000 12.50 12,500      
    2,000 12.63 25,260      
    13,800 12.75 175,950      
    6,500 12.88 83,720      
    10,200 12.94 131,988      
    1,500 13.00 19,500      
    1,000 13.13 13,130      
    1,000 13.19 13,190      
    200 13.31 2,662      
    300 12.88 3,864      
    200 12.94 2,588      
    2,700 13.00 35,100      
    1,000 13.13 13,130      
    4,200 13.19 55,398      
        1,609,085      
               
05-00 Buy 200 13.13 2,626 06-12-00 1w  
    200 13.19 2,638 06-23-00    
    100 13.25 1,325      
    300 12.94 3,882      
    400 12.75 5,100      
    400 11.44 4,576      
    1,100 11.50 12,650      
    500 11.63 5,815      
    1,000 11.56 11,560      
    300 11.63 3,489      
    200 11.75 2,350      
    1,500 11.81 17,715      
    1,000 11.88 11,880      
    200 11.69 2,338      
    800 11.75 9,400      
    1,000 11.94 11,940      
    500 12.50 6,250      
    500 12.63 6,315      
    500 12.31 6,155      
    500 12.38 6,190      
    1,700 11.94 20,298      
    500 11.99 5,995      
    1,200 12.00 14,400      
    300 12.06 3,618      
    200 11.13 2,226      
    600 11.25 6,750      
    1,000 11.38 11,380      
    500 11.50 5,750      
    200 11.63 2,326      
    100 11.38 1,138      
    100 11.50 1,150      
        209,225      
               
05-00 ale 172,000 10.88 1,871,360 06-12-00 1w    
  200,000 10.88 2,176,000 06-23-00      
        4,047,360      
               
Total value late
reported transactions:
$ 8,802,449      
               
* = Price per share rounded off
               
1 Date received reflects report on Form 4 reporting transactions in lieu of Form 5.
               
c/s = common stock
T = Timely



SCOTT N. DRAIME

Schedules 13G and Amendments

Stoneridge, Inc.

February 10, 1998 through March 6, 2001

Date
of
Trans.
Type No. of
Shares
Event
Triggering
Amendment
Date
Due/
Date
Rec'd
Apprx.
Yrs./Mos./
Wks.Late
1-31-98 13G 1,850,794   02-10-98 T
        02-12-98  
           
1998 13G Amendment Change in 02-16-99* T
      Information 02-09-99  
           
1999 13G Amendment " 02-14-00 1y3w
        03-06-01  
           
2000 13G Amendment " 02-14-01 3w
        03-06-01  
           
           
* = For the purpose of this table, the date due for amendments reflects the date the obligation to file the amendment arose.
** = Lateness calculated through March 6, 2001.

IV.

FINDINGS

Based on the above, the Commission finds that Draime violated Sections 13(g) and 16(a) of the Exchange Act, Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

V.

OFFER OF SETTLEMENT

Draime has submitted an Offer of Settlement in this proceeding which the Commission has determined to accept. Draime, in his Offer, consents to this Order making findings, as set forth above, and ordering him to cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

VI.

ORDER

Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Draime cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

By the Commission.

Jonathan G. Katz
Secretary



http://www.sec.gov/litigation/admin/34-44384.htm
Modified: 06/06/2001