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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SECURITIES EXCHANGE ACT OF 1934
Release No. 45689 / April 4, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10702


In the Matter of

JOHN ADAMS, JR.,
RONALD BONGO,
SAMUEL DEL PRESTO,
SEAN HART,
CURTIS MARCHAND, III,
MICHAEL MCDERMOTT,
PALMER MYERS,
DAVID NELSON,
DANIEL PETRONELLI,
GARY SMOLOKOFF,
MALIK TAWIL,
LAWRENCE WEIL,
and NEIL WHITE


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ORDER MAKING FINDINGS AND IMPOSING SANCTIONS BY DEFAULT AGAINST LAWRENCE WEIL

SUMMARY

This Order bars Lawrence Weil from association with a broker-dealer, based on his felony conviction. Weil, who had been associated with a broker-dealer that operated as a boiler room, was convicted of conspiracy to commit securities fraud.

I. BACKGROUND

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) in this matter on February 15, 2002, pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). The OIP alleges that Lawrence Weil was associated with a broker-dealer from May 1992 to October 1995, and was convicted of conspiracy to commit securities fraud. Weil was served with the OIP on February 25, 2002. By letter dated March 14, 2002, Weil affirmatively stated that he would not defend the proceeding, based on his understanding that the Division of Enforcement (Division) is seeking to bar him from the securities industry and is not seeking any monetary sanction. On April 2, 2002, the Division filed a Motion for Default, pursuant to 17 C.F.R. § 201.155(a)(2), asking that Weil be barred from association with any broker or dealer.

Weil is in default within the meaning of 17 C.F.R. § 201.155(a)(2) in that he affirmatively declined to defend the proceeding. Accordingly, the undersigned finds that the allegations in the OIP as to him are true. The findings of fact and conclusions of law made in this order as to Weil are not binding on any other person in this proceeding.

II. FINDINGS OF FACT

Weil was employed as a registered representative, a co-branch manager, and a regional vice president from May 1992 to October 1995 at a registered broker-dealer, L.C. Wegard & Co., Inc. (Wegard). Wegard operated as a boiler room, and Weil and others participated in a conspiracy to commit securities fraud by inducing unsuspecting investors to purchase speculative high-risk securities through the use of fraudulent and deceptive sales practices. Weil was convicted of conspiracy to commit securities fraud on July 26, 2000. United States v. Lawrence Weil, No. 98-414-07 (D. N.J.)

III. CONCLUSIONS OF LAW

Weil has been convicted, within ten years of the commencement of this proceeding, of "conspiracy to commit" a felony that "involves the purchase or sale of any security" and also "arises out of the conduct of the business of a broker [or] dealer" within the meaning of Sections 15(b)(4)(B) and 15(b)(6)(A)(ii) of the Exchange Act. His unlawful conduct was recurring and egregious. There are no mitigating circumstances.

IV. SANCTION

The Division requests that Weil be barred from association with any broker or dealer. This sanction will serve the public interest and the protection of investors, pursuant to Sections 15(b) and 19(h) of the Exchange Act. It accords with Commission precedent and the sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979).

V. ORDER

IT IS ORDERED that LAWRENCE WEIL IS BARRED from association with any broker or dealer.

__________________________________
Carol Fox Foelak
Administrative Law Judge


http://www.sec.gov/litigation/admin/34-45689.htm


Modified: 04/05/2002