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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. 48168 / July 11, 2003

Administrative Proceeding
File No. 3-11176


In the Matter of

DANIEL M. COYLE,

Respondent.


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ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934

I.

The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest that public administrative proceedings be instituted against Daniel M. Coyle ("Coyle"), pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").

II.

In anticipation of the institution of these administrative proceedings, Coyle has submitted an Offer of Settlement of Daniel M. Coyle ("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 in which the Commission is a party, and without admitting or denying the findings set forth herein, except as to personal and subject matter jurisdiction, and the entry of the injunction set forth in Paragraph III.B below, which are admitted, Coyle consents to the entry of this Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") and to the entry of the findings and imposition of the remedial sanctions set forth below.

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

III.

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

A. Coyle, age 29, resides in Brooklyn, New York. From at least October 1994 through at least January 2001, Coyle worked as a qualifier and/or registered representative at twelve registered broker-dealers, including A.S. Goldmen, Lloyd Wade Securities, Inc., Pacific Continental Securities Corp., and Seaboard Securities, Inc. Coyle holds series 7 and 63 licenses.

B. On May 12, 2003, a final judgment was entered by consent against Coyle, permanently enjoining him from future 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) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Michael I. Nnebe, et al., Civil Action Number 01-CV-5247, in the United States District Court for the Southern District of New York.

C. In its complaint, the Commission alleged that, in connection with the sale of securities issued by Fargo Holdings, Inc. ("Fargo"), Coyle falsely told investors that Fargo would be conducting an initial public offering ("IPO") of its stock in the near future that would cause the price of Fargo stock to double, and that purchasing Fargo stock was risk free because investor funds would be returned if Fargo did not conduct an IPO. Coyle also caused a Fargo private placement memorandum to be sent to investors that contained false and misleading statements concerning, among other things, the anticipated use of the offering proceeds, the level of commissions paid for selling Fargo stock, and Fargo's purported business operations. Coyle also sold unregistered Fargo securities, and acted as an unregistered broker.

IV.

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

ACCORDINGLY, IT IS HEREBY ORDERED that, pursuant to Section 15(b)(6) of the Exchange Act, Respondent Coyle be, and hereby is, barred from association with any broker or dealer with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.

By the Commission:

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-48168.htm


Modified: 07/14/2003