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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before The
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 46424 / August 28, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10873


In the Matter of

CHIMNEYVILLE INVESTMENTS,
GROUP, INC.,

Respondent.


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ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 15(b)(4) 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 a public administrative proceeding be instituted pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934 ("Exchange Act") against Chimneyville Investments Group, Inc. ("Chimneyville").

In anticipation of the institution of these proceedings, Chimneyville has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose 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 Commission's findings set forth herein, except as to the jurisdiction of the Commission over it and over the subject matter of these proceedings and the entry of a Final Judgment of Permanent Injunction as described in Section III, Paragraph C, below, which it admits, Chimneyville consents to the entry of this Order Instituting Proceedings Pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions, which contains the findings set forth herein and the imposition of the remedial sanctions set forth below.

II.

Accordingly, IT IS HEREBY ORDERED THAT proceedings pursuant to Section 15(b)(4) of the Exchange Act be, and hereby are, instituted.

III.

On the basis of this Order and the Offer of Settlement by Chimneyville, the Commission makes the following findings:

A. From February 1994 through at least August 1998, Chimneyville (File No. 8-47275) was a broker-dealer registered as such with the Commission in Jackson, Mississippi. Chimneyville operated under the name of Crown Investments, Inc., from February 1994 until July 1997.

B. On September 1, 1998, the Commission commenced a civil action entitled U.S. Securities and Exchange Commission v. Chimneyville Investments Group, Inc. and Joseph Randolph Belew, Civil Action Number 3:98-CV-574 WS, in the United States District Court for the Southern District of Mississippi. The Commission's complaint alleged that Chimneyville had violated Sections 10(b), 15(c)(3) and 17(a)(1) of the Exchange Act and Rules 10b-5, 15c3-1, 15c3-3, 17a-3 and 17a-4 thereunder. The complaint alleged that Chimneyville had misappropriated for its own use funds entrusted to it by customers for investments in securities and that it had failed to maintain adequate net capital and to keep adequate books and records.

C. On July 31, 1998, an order in the civil action was entered against Chimneyville by consent, enjoining it, directly or indirectly, from future violations of Sections 10(b), 15(c)(3) and 17(a)(1) of the Exchange Act and Rules 10b-5, 15c3-1, 15c3-3, 17a-3 and 17a-4 thereunder.

IV.

Based upon the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified by Chimneyville in its Offer of Settlement.

Accordingly, IT IS HEREBY ORDERED that the registration of Chimneyville as a broker-dealer is revoked.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-46424.htm


Modified: 08/29/2002