UNITED STATES OF AMERICA
| ORDER OF|
TO RULE 102(e)(2) OF THE
COMMISSION'S RULES OF PRACTICE
The Securities and Exchange Commission ("Commission") deems it appropriate that an Order of Suspension be issued against Shawn F. Hackman ("Hackman") pursuant to paragraph (2) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. § 201.102(2)] ("Rule 102(e)").1
The Commission finds that:
A. Hackman is an attorney and was licensed to practice law in the State of Nevada on October 16, 1996.
B. On August 2, 1999, the Commission filed a complaint (the "Complaint") in the United States District Court for the District of Nevada against Kanakaris Communications, Inc. ("KCI") and others, including Hackman. The Complaint alleges, among other things, that Hackman violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder by: (1) preparing a false offering memorandum for KCI; (2) selling KCI stock using the offering memorandum; (3) collecting and distributing the proceeds of those sales while retaining $333,645 of those funds for his own use; and (4) without authorization from KCI, preparing and filing a materially misleading registration statement with the Commission. The Commission is seeking a permanent injunction, disgorgement and civil penalties against Hackman.
C. On April 13, 2002, the Supreme Court of Nevada barred Hackman from practicing law in that state based on findings that Hackman had misappropriated over $700,000 in client funds at a time when he was ostensibly cooperating with bar counsel concerning allegations by other clients that Hackman had misappropriated their funds as well. In Re Discipline of Shawn F. Hackman (No. 38826).
ORDER IMPOSING SANCTIONS
Based upon the foregoing, the Commission finds that Hackman has been disbarred from the practice of law within the meaning of Rule 102(e)(2) of the Commission's Rules of Practice. The Commission deems it appropriate and accordingly, IT IS HEREBY ORDERED, that Hackman be forthwith suspended from appearing or practicing before the Commission as an attorney.
By the Commission.
Jonathan G. Katz
|1||Rule 102(e)(2) provides in pertinent part: "Any attorney who has been suspended or disbarred by a court of the United States or of any State … shall be forthwith suspended from appearing or practicing before the Commission. A disbarment … within the meaning of this section shall be deemed to have occurred when the disbarring . . . agency or tribunal enters its judgment or order .…"|
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