Vadim "Steven" Shapiro

Securities Exchange Act of 1934
Release No. 47848 / May 14, 2003

Administrative Proceedings
File No. 3-11116

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against respondent Vadim "Steven" Shapiro ("Shapiro").

II.

In anticipation of the institution of these proceedings, Shapiro 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 to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.F and III.H below, which are admitted, Shapiro consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

On the basis of this Order and Shapiro's Offer, the Commission finds that:

A. Shapiro, 30, currently resides Baltimore, Maryland. From March through June 1998, Shapiro was employed by Hornblower & Weeks, Inc., ("H&W") a registered broker-dealer, as a registered representative.

B. While he was employed at H&W, Shapiro solicited individuals to invest in Diagnostic Professional Imaging Services, Inc. ("Diagnostic") from H&W's offices located at 110 Wall Street in New York, New York. The Diagnostic offering, purportedly made pursuant to Rule 504 of Regulation D, raised more than $580,000 from at least fifty investors.

C. In connection with the Diagnostic offering, Shapiro represented to investors that (1) the proceeds of the offering would be used for Diagnostic's legitimate business purposes and (2) that Diagnostic was going to launch an initial public offering in the near future. These representations were false. In fact, Diagnostic promoters diverted a substantial portion of the offering proceeds to their own personal benefit and, consequently, those proceeds were never used for Diagnostic's business. In addition, Diagnostic never had any plan to conduct an initial public offering. Shapiro knew or was reckless in not knowing that his representations to investors about Diagnostic were false. These misrepresentations were material.

D. Shapiro participated in the offering of the common stock of Diagnostic, a "penny stock" as that term is used in Section 15(b)(6) and as defined by Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder.

E. On June 14, 2000, the Commission filed a Complaint in the United States District Court for the Southern District of New York against Shapiro alleging that he engaged in the conduct described above. SEC v. Diagnostic Professional Imaging Services, Inc., 00 Civ. 4386 (NRB) (S.D.N.Y.) (the "Civil Action").

F. On February 25, 2003, a Final Judgment of Permanent Injunction and Other Relief ("Final Judgment") was entered by consent against Shapiro in the Civil Action, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

G. By reason of the foregoing, Shapiro willfully violated and has been permanently enjoined from violating Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

H. On November 20, 2000, Shapiro pled guilty to securities fraud in violation of Title 15 United States Code, Sections 78j(b) and 78ff, and mail fraud in violation of Title 18 United States Code, Section 371 before the United States District Court for the Southern District of New York, in United States v. Vadim Shapiro, 00 CR 247-006 (LAP). On March 16, 2001, a judgment in the criminal case was entered against Shapiro. He was sentenced to a prison term of two years probation and was ordered to pay $25,000 in restitution.

I. The counts to which Shapiro pled guilty alleged, among other things, that Shapiro defrauded investors and obtained money and property by means of materially false and misleading statements, and that he caused commercial carriers to deliver investor funds to Diagnostic.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Shapiro's Offer.

ACCORDINGLY, IT IS HEREBY ORDERED:

A. Pursuant to Section 15(b)(6) of the Exchange Act, Shapiro be, and hereby is, barred from association with any broker or dealer; and

B. Pursuant to Section 15(b)(6) of the Exchange Act, Shapiro 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