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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. 47744 / April 25, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11094


In the Matter of

ALFREDO SUSI,

Respondent.


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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) 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 public administrative proceedings be instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Alfredo Susi ("Susi" or "Respondent").

II.

In anticipation of the institution of these proceedings, Susi submitted an Offer of Settlement ("Offer") to the Commission, which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, Susi, without admitting or denying the findings, except as to the jurisdiction of the Commission over Susi and over the subject matter of this proceeding, and as to the entry of the injunction set forth in paragraph III.D. below, which are admitted, consents to the entry of the findings and remedial sanctions set forth below.

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

III.

On the basis of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order") and Susi's Offer, the Commission finds that:

  1. At all relevant times, Public Communication Services, Inc., n/k/a Sprawlnet.com, Inc., was a penny stock as defined in the Exchange Act and rules promulgated thereunder. Susi, as a result of his activities as principal owner, president and chief executive officer, participated in a penny stock offering.

  2. On March 11, 2003, the Commission filed a complaint ("Complaint") in the United States District Court for the Southern District of Florida, SEC v. Public Communication Services, Inc., et al., Civil Action No. 03-20557-CIV-LENARD (S.D. Fla.). The Complaint charged Susi with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

  3. According to the Complaint, the defendants raised approximately $7 million from over 300 investors located in the United States through the fraudulent, unregistered, offer and sale of securities. The Complaint alleges, among other things, that the unregistered securities were offered and sold by in-house sales agents that made materially false and misleading representations to prospective investors as well as through false and misleading written offering materials.

  4. On April 8, 2003, the District Court entered a Judgment of Permanent Injunction and Other Relief, by consent, against Susi, enjoining him from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Susi's Offer.

Accordingly, IT IS ORDERED that:

Respondent be, and hereby is, barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent, or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

By the Commission.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-47744.htm


Modified: 04/28/2003