UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 45961 / May 20, 2002
File No. 3-10784
In the Matter of Kfir Barzilay, Yan Dikshteyn, Boris Fidler, Lawrence Pross, and Eugene Beigelman
COMMISSION ISSUES ORDER INSTITUTING PROCEEDINGS AGAINST KFIR BARZILAY, YAN DIKSHTEYN, BORIS FIDLER, LAWRENCE PROSS AND EUGENE BEIGELMAN
The Commission announced the entry of an Order Instituting Public Administrative Proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") against Kfir Barzilay ("Barzilay"), Yan Dikshteyn ("Dikshteyn"), Boris Fidler ("Fidler"), Lawrence Pross ("Pross"), and Eugene Beigelman ("Beigelman") (collectively "Respondents") based upon the entry of orders of permanent injunction against them for engaging in fraudulent sales practice abuses in the accounts of their customers at W.J. Nolan & Company, Inc. ("W.J. Nolan"). The Order as to Fidler is also based on his July 26, 1999 criminal conviction for one count of violating 18 U.S.C. §371 (conspiracy to commit securities fraud, wire fraud and commercial bribery), in U.S. v. Zaborsky, et al., No. 98 CRIM 1037, in the United States District Court for the Southern District of New York.
The staff alleges that during the period April 1997 through November 1997, Respondents were registered representatives associated with W.J. Nolan, a broker-dealer registered with the Commission. On August 2, 1999, the Commission filed a Complaint in the United States District Court for the Northern District of Illinois against Respondents and others captioned SEC v. Kfir Barzilay, et al., No. 99 C 5023. The Commission's Complaint alleges, among other things, that while at W.J. Nolan, Respondents engaged in unauthorized and unsuitable trading and churning in the accounts of several of their customers.
On January 24, 2002, in SEC v. Barzilay, the Honorable Ronald Guzman entered a Final Order of Permanent Injunction And Other Relief By Default Against Defendants Barzilay, Dikshteyn, Fidler and Pross, which among other things, enjoins them from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Exchange Act and Rule 17a-3 thereunder, and also enjoins Fidler and Pross from violating Section 15(b)(7) of the Exchange Act and Rule 15b7-1 thereunder. On March 13, 2002, Judge Guzman entered a Final Order of Permanent Injunction And Other Relief By Default Against Defendant Eugene Beigelman which, among other things, enjoins him from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Exchange Act and Rule 17a-3 thereunder. A hearing will be held before an administrative law judge to determine whether the staff's allegations against Respondents are true, to provide Respondents an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate in the public interest.