U.S. Securities & Exchange Commission
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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. 47973 / June 4, 2003

Investment Advisers Act Of 1940
Release No. 2135 / June 4, 2003

Administrative Proceeding
File No. 3-11146


In the Matter of

DOUGLAS FANEUIL,

Respondent.


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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, 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, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Douglas Faneuil ("Respondent").

II.

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "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.2 and III.3 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

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

1. Faneuil was a registered representative employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), which is registered with the Commission as a broker-dealer and investment adviser. Faneuil began working at Merrill Lynch in June 2001 and was suspended indefinitely with pay in June 2002. Merrill Lynch terminated Faneuil's employment on October 2, 2002. Faneuil, 27 years old, is a resident of New York, New York.

2. On October 2, 2002, Faneuil pled guilty to one count of receiving money or other valuable things as consideration for not informing against a violation of a law of the United States, namely violations of Title 15 United States Code Sections 78j(b) and 78ff; Title 18 United States Code Section 2; and Title 17 Code of Federal Regulations Section 240.10b-5, in violation of Title 18 United States Code Section 873, before the United States District Court for the Southern District of New York, in United States v. Douglas Faneuil, 02 CR 1287.

3. The count of the misdemeanor information to which Faneuil pled guilty alleged, inter alia, that Faneuil did not inform the Commission staff of the true facts surrounding a sale of securities in violation of the anti-fraud provisions of the federal securities laws and in consideration for not informing, he received money and other things of value.

IV.

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

ACCORDINGLY, IT IS HEREBY ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act, that Respondent Faneuil be, and hereby is, barred from association with any broker, dealer, or investment adviser.

Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a

customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

By the Commission.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-47973.htm


Modified: 06/04/2003