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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. 48824 / November 24, 2003

Investment Advisers Act of 1940
Release No. 2195 / November 24, 2003

Administrative Proceeding
File No. 3-11342


In the Matter of

LAWRENCE M. BARSI

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 Lawrence M. Barsi ("Barsi" or "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.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. Respondent, age 48, is a resident of Chicago, Illinois.

2. From at least the late 1980s to October 2002, Respondent, doing business as Apollo Appreciation, operated as an unregistered broker-dealer and investment adviser.

3. On May 21, 2003, Barsi pled guilty to one count of mail fraud in violation of Title 18 United States Code, Section 1341 before the United States District Court for the Northern District of Illinois, in United States v. Lawrence M. Barsi, Crim. Information No. 03CR0333.

4. The criminal information to which Barsi pled guilty alleged, inter alia, that:

a. From the late 1980s until on or about October 31, 2002, Barsi devised and participated in a scheme to defraud whereby he fraudulently obtained over $2,500,000 from approximately 60 investors.

b. Barsi told the investors he would invest their money in securities. In fact, Barsi used the money for other purposes including personal expenses, other investments, and payments to other investors.

c. Barsi created and mailed account statements to investors falsely representing that he invested their money in securities and that such investments were profitable.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Barsi'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 Barsi 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/34-48824.htm


Modified: 11/24/2003