U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 45491 / March 1, 2002

Administrative Proceeding
File No. 3-10713


In the Matter of

Robert E. Duke,

Respondent.


:
:
:
:
:
:
:

ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 , MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against Robert E. Duke ("Duke" or "Respondent") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").

In anticipation of the institution of these proceedings, Respondent has 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 any of the findings contained herein, except as to the jurisdiction of the Commission over him and over the subject matter of these proceedings, and the matters set forth in paragraph II. 1., below, and the entry of the injunction set forth in paragraphs II. 4. and 6., below, which are admitted, Respondent consents to the entry by the Commission of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order").

Accordingly, IT IS HEREBY ORDERED that proceedings against Respondent be and hereby are instituted.

II.

On the basis of this Order and the Offers, the Commission finds that:

1. Respondent has never been registered with the Commission as a broker or dealer, or in any other capacity, and has never been associated with a broker or dealer registered with the Commission. At all relevant times, Respondent was associated with an unregistered broker-dealer.

2. On June 5, 2001, the Commission filed a complaint in the United States District Court for the Southern District of Florida, SEC v. William J. Tishman, et al., Civil Action No. 01-6952-CIV-Dimitrouleas, naming Respondent as a defendant (the "Complaint"), in addition to Respondent's company, Sam Sara Investments, Inc. ("Sam Sara"). The Complaint charged Respondent with violations of the offering registration and broker-dealer registration provisions of the federal securities laws.

3. The Commission alleged in its Complaint, among other things, as follows:

  1. No registration statement pursuant to the Securities Act of 1933 was in effect pursuant to any securities offerings, or any securities offered, by Medical Research Industries, Inc. ("MRI").

  2. Sam Sara was incorporated in 1997 under Florida law. Duke was a 50% or majority owner of Sam Sara during the relevant period, as well as its sole officer and director.

  3. Under Duke's direction, Sam Sara acted as an off-site boiler room selling the stock issued by MRI, a Florida company. Of the total $52 million raised in MRI's four private placement securities offerings, Sam Sara's telemarketers raised over $15 million in an approximate 18-month period.

  4. For their sales efforts, Sam Sara and Duke received sales commissions from MRI in excess of $3 million, derived from the proceeds of the MRI offerings.

  5. Sam Sara and Duke were in the business of effecting transactions in MRI stock, or inducing or attempting to induce the purchase or sale of MRI stock, while not associated with a broker-dealer that was registered with the Commission in accordance with the provisions of Section 15(b) of the Exchange Act.

4. On September 21, 2001, without admitting or denying any of the allegations in the Commission's Complaint, except as to jurisdiction and venue, Respondent consented to the entry of a final judgment of permanent injunction and other relief. On February 20, 2002, the Court permanently enjoined Respondent from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a) of the Exchange Act.

5. On March 15, 2001, the Commission filed a Complaint in the United States District Court for the Southern District of Florida, SEC v. Hawa Corporation, et al., Civil Action No. 00-8660-CIV-Hurley (S.D. Fla. March 15, 2001) (the "Hawa Complaint"), against, among others, Respondent. The Hawa Complaint charged Respondent and others with violating the securities registration, broker-dealer registration, and antifraud provisions of the federal securities laws, in connection with the unregistered offering of securities issued by Hawa Corporation, Hawa Communications, Inc. and Hawa Med., Inc.

6. On October 2, 2001, without admitting or denying any of the allegations in the Commission's Hawa Complaint, except as to jurisdiction and venue, Respondent consented to the entry of a final judgment of permanent injunction and other relief. On February 20, 2002, the Court permanently enjoined Respondent from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Exchange Act, and Rule 10b-5, thereunder.

III.

Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offers submitted by Respondent, and accordingly,

IT IS HEREBY ORDERED that:

Respondent Robert E. Duke be, and hereby is, barred from association with any broker or dealer.

By the Commission.

Jonathan G. Katz
Secretary


http://www.sec.gov/litigation/admin/34-45491.htm


Modified: 03/01/2002