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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. 47747 / April 25, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11095


In the Matter of

RICHARD I. BALBER,

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 Richard I. Balber ("Balber" or "Respondent").

II.

In anticipation of the institution of these proceedings, Balber 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, Balber, without admitting or denying the findings, except as to the jurisdiction of the Commission over Balber 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 Balber's Offer, the Commission finds that:

  1. At all relevant times Balber was acting as an unregistered broker-dealer.

  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 Balber with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 15(a)(1) 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.

  4. On April 8, 2003, the District Court entered a Judgment of Permanent Injunction and Other Relief, by consent, against Balber, enjoining him from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act, Sections 10(b) and 15(a)(1) 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 Balber's Offer.

Accordingly, IT IS ORDERED that:

Respondent be, and hereby is, barred from association with any broker or dealer.

By the Commission.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-47747.htm


Modified: 04/28/2003