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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. 44901 / October 3, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10526


In the Matter of

JAMES L. BINGE
and ERIC V. BARTOLI


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ORDER MAKING FINDINGS AND
IMPOSING SANCTIONS BY DEFAULT
AGAINST JAMES L. BINGE

The Securities and Exchange Commission (Commission) instituted this proceeding, pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 (Exchange Act) and Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act), on June 28, 2001, with an Order Instituting Public Administrative Proceedings (OIP).1

On September 13, 2001, the Division of Enforcement (Division) filed a Motion for Entry of Default Against Respondent James L. Binge (Motion).2 The Division requests that Binge be barred from association with any broker or dealer.

Pursuant to 17 C.F.R. §§ 201.155(a) and .220(f), a respondent who fails to answer, respond to a dispositive motion within the time provided, or otherwise defend the proceeding may be deemed to be in default. The administrative law judge may then determine the proceeding against him upon consideration of the record, including the OIP, the allegations of which may be deemed to be true.

Binge is in default within the meaning of 17 C.F.R. § 201.155(a). He failed to answer the allegations in the OIP, respond to a dispositive motion, or otherwise defend the proceeding. See 17 C.F.R. §§ 201.155(a) and .220(f). The certified mail receipt, executed by Binge and received by the Commission's Office of the Secretary, establishes that Binge received the OIP on July 3, 2001. See Exhibit A to Motion. Binge did not file an answer to the OIP or respond to the Motion. On September 14, 2001, Binge was ordered to show cause, by September 24, 2001, why he should not be held in default and barred from association with a broker or dealer as the Division requests. Binge did not submit an answer, correspondence, or any other pleading. Accordingly, I find that the allegations in the OIP are true.

At all relevant times, Binge was a director of Cyprus Fund, Inc. (Cyprus Fund), an unregistered foreign investment company. He was also a registered representative associated with a registered broker-dealer.

On August 27, 1999, the Commission filed an emergency action in the United States District Court for the Southern District of Florida seeking a temporary restraining order, asset freeze, and appointment of a receiver against Cyprus Fund, Latin American Services Co., Ltd, Binge, Eric V. Bartoli, and other directors of Cyprus Fund. See SEC v. Latin Am. Servs. Co., No. 99-2360-Civ-Davis (S.D. Fla. 1999). In its complaint, the Commission alleged the ongoing fraudulent sale of unregistered securities, specifically Cyprus Fund shares, and the misappropriation of investor funds by principals of Cyprus Fund, including Binge.

On September 3, 1999, the district court entered a preliminary injunction against the defendants, including Binge, and extended the asset freeze to the conclusion of the case. On September 29, 2000, a Final Judgment of Permanent Injunction and Other Relief was entered against Binge, enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

In view of the foregoing, and pursuant to Sections 15(b) and 19(h) of the Exchange Act, it is in the public interest and necessary for the protection of investors that Binge be barred from association with any broker or dealer.

Accordingly, I GRANT the Division's Motion and ORDER Respondent James L. Binge barred from association with any broker or dealer.

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Robert G. Mahony
Administrative Law Judge


Footnotes

1 Section 203(f) of the Advisers Act is triggered by the alleged conduct of Respondent Eric V. Bartoli.
2 The findings herein are binding solely upon Binge, and not on any other respondent in this proceeding.


http://www.sec.gov/litigation/admin/33-8023.htm


Modified: 10/12/2001