UNITED STATES OF AMERICA
In the Matter of
ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS PURSUANT TO SECTION 15(b)(6) OF THE SECURITIES EXCHANGE ACT OF 1934
On November 21, 2001, the Securities and Exchange Commission ("Commission") instituted public administrative proceedings against Bernadette Stevens ("Stevens") a/k/a Bernadette Stevens Bell pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act").
Following the institution of those administrative proceedings, Stevens has submitted an Offer of Settlement (the "Offer") that 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, Stevens consents to the entry of this Order Making Findings And Imposing Remedial Sanctions pursuant to Section 15(b)(6) of the Exchange Act, and admits the jurisdiction of the Commission over her and over the subject matter of these proceedings and further admits the allegations set forth in the Order Instituting Proceedings.
The Commission has determined that it is appropriate and in the public interest to accept Stevens's Offer and accordingly is issuing this Order.
FINDINGS OF FACT
On the basis of this Order and the Offer, the Commission makes the following findings:
A. From July 1985 through March 1995, and from February 1996 through at least April 1997, Stevens was associated with a series of registered broker-dealers.
B. On September 23, 1998, the Commission filed a civil injunctive action against Stevens and others [SEC v. David Morgenstern, et al., Civil Action No. 98-7044, (S.D. Fl.)], alleging that Stevens and others violated Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
C. The Commission's complaint alleged that Respondent Stevens and others, throughout most of 1996, made misrepresentations in connection with a private offering of securities issued by a publicly traded company, including, but not limited to, misrepresentations concerning the ownership and value of the company's assets, the composition and activities of its management, its business prospects, and the intended use of its stock proceeds. In addition, the complaint alleged that Stevens and others made misrepresentations in connection with a private offering of securities issued by another company, including, but not limited to, misrepresentations concerning the ownership and value of its assets, the composition and activities of its management and the intended use of the stock proceeds from its stock offering. As the result of the misconduct, investors were defrauded out of approximately $4.1 million.
D. On September 25, 2000, without admitting or denying any of the allegations contained in the Commission's complaint, except as to jurisdiction and venue which she admitted, Stevens consented to the entry of a judgment of permanent injunction permanently enjoining her from violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and ordering her to disgorge $143,684.67 plus pre-judgment interest, but waiving disgorgement and pre-judgment interest in excess of $10,000.
E. On January 16, 2001, the United States District Court for the Southern District of Florida issued an order in the Commission's civil injunctive action against Stevens [Securities and Exchange Commission v. Bernadette Stevens, Civil Action No. 98-7044, (S.D. Fla.)] that, inter alia, permanently enjoins Stevens from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and orders her to disgorge $143,684.67 plus pre-judgment interest, but waives disgorgement and pre-judgment interest in excess of $10,000, and does not impose a civil penalty based upon Stevens's demonstrated inability to pay in excess of $10,000.
In view of the foregoing, the Commission deems it appropriate and in the public interest and for the protection of investors to accept Stevens's Offer and to impose the sanctions and other relief specified in the Offer. Accordingly it is hereby ORDERED that Stevens be barred from association with any broker or dealer.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
|Home | Previous Page||