UNITED STATES OF AMERICA
In the Matter of
|ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Thomas Bock ("Bock"), pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").
In anticipation of the institution of this administrative proceeding, Bock has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except the Commission's findings set forth in paragraphs III. A., III. B. and III. C. below, which Bock admits, Bock consents to the issuance of this Order Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order").
Accordingly, IT IS ORDERED that an administrative proceeding be and hereby is instituted against Bock pursuant to Section 15(b) of the Exchange Act.
On the basis of this Order and the Respondent's Offer, the Commission finds that:
A. During the period from January 1993 through February 1998, Bock was a principal of Oakford Corp., a broker-dealer registered with the Commission.
B. On May 20, 1999, Bock pleaded guilty to conspiracy to violate Section 11(a) of the Exchange Act and Rule 11a-1 thereunder in U.S. v. Oakford Corporation, 98 Cr. 144 (S.D.N.Y).
C. On March 15, 2002, Bock was permanently enjoined, on consent, by the United States District Court for the Southern District of New York in SEC v. Oakford Corp., et al., 00 Civ. 2426 (the "Injunctive Action"), from violating Sections 11(a) and 17(a) of the Exchange Act and Rules 11a-1 and 17a-3 thereunder.
D. The Commission's Complaint in the Injunctive Action alleged, in part, as follows: as a principal of Oakford Corp., a broker-dealer that was not a member of the New York Stock Exchange ("NYSE"), Bock entered into illegal profit sharing arrangements with certain independent floor brokers to engage in illegal trading on the floor of the NYSE. Pursuant to the arrangement, accounts were opened at Oakford and falsely identified as firm proprietary accounts, when, in fact, they were controlled by the independent floor brokers. From October 1993 through at least December 1997, floor brokers executed transactions for their Oakford accounts and split the profits from the activity in those accounts with Bock and Oakford. Various books and records, including order tickets, were falsified to conceal the true nature of the transactions.
Based upon the foregoing, it is appropriate and in the public interest to impose the sanctions specified in the Offer. Accordingly,
IT IS HEREBY ORDERED, effective immediately, that Bock be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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