United States of America
Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 45610 / March 21, 2002
File No. 3-10730
In the Matter of
|ORDER INSTITUTING |
TO SECTION 15(b) OF THE
ACT OF 1934, MAKING
FINDINGS AND IMPOSING
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be and hereby are instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"), against Oleg Feldman ("Feldman").
In anticipation of the institution of these proceedings, Feldman has submitted an Offer of Settlement to the Commission which the Commission has determined to accept. Solely for the purposes of these proceedings and any other proceedings 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 as to facts set forth in paragraphs II.A., B. and D. and the Commission's jurisdiction over him and over the subject matter of this proceeding, which are admitted, Feldman consents to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below.
On the basis of this Order and the Offer of Settlement submitted by Feldman, the Commission finds that:
- During the period February 1997 through October 2000, Feldman was a registered representative associated with various broker-dealers registered with the Commission, including, from April 1997 to November 1997, W.J. Nolan & Company, Inc. ("Nolan").
- On August 2, 1999, the Commission filed a Complaint in the United States District Court for the Northern District of Illinois against Feldman and others captioned SEC v. Kfir Barzilay, et al., No. 99 C 5023.
- The Commission's Complaint alleges that from about April through November of 1997, Feldman was associated with the Park Avenue office of Nolan. The Complaint alleges that, during this period, among other things, Feldman engaged in fraudulent sales practices in the accounts of at least thirteen customers. The Complaint alleges that Feldman's activities included: (1) churning at least six accounts; (2) trading one or more times without authorization in at least nine accounts; and (3) making unsuitable trades in at least three accounts. The Complaint also alleges that in the accounts that Feldman churned, the annualized turnover ratios ranged from approximately 8 to 32, and the annualized break even ratios ranged from approximately 9% to 172%. The Complaint further alleges that from these fraudulent transactions, Feldman earned over $17,000 in commissions.
- On March 13, 2002, in SEC v. Barzilay, the Honorable Ronald Guzman entered an Order of Permanent Injunction and Other Relief Against Oleg Feldman ("Order of Permanent Injunction") enjoining Feldman from violating Sections 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Exchange Act and Rule 17a-3 promulgated thereunder. Feldman, without admitting or denying the allegations in the Complaint, consented to the entry of the Order of Permanent Injunction.
In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of Settlement of Oleg Feldman.
Accordingly, IT IS ORDERED that Respondent Oleg Feldman is barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz