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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. 49303 / February 23, 2004

Admin. Proc. File No. 3-11368


In the Matter of

ERIC STUERKEN,

Respondent.  



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

I.

On December 29, 2003, the Securities and Exchange Commission ("Commission") instituted public administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Eric Stuerken ("Stuerken" or "Respondent").

II.

Respondent has submitted an Offer of Settlement ("Offer") that 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 herein, except for the Commission's jurisdiction over him and the subject matter of these proceedings, and except for the entry of the judgment set forth in paragraph III.C. below, which are admitted, Respondent consents to the entry of this Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") as set forth below.

III.

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

A. Respondent, age 33, is incarcerated at Allenwood Federal Prison Camp, Montgomery, Pennsylvania. During the relevant time period, Respondent was registered with the National Association of Securities Dealers. He conducted business through Investors Associates, Inc., a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act, with headquarters in Hackensack, New Jersey. Investors Associates, Inc. ceased business, except for liquidating trades, on approximately July 12, 1997. Its corporate charter was revoked by the State of New Jersey on February 16, 1998, and its broker-dealer registration was cancelled by the Commission on September 22, 1998.

B. Investors Associates, Inc. was primarily engaged in the business of telemarketing speculative securities that were underwritten and/or recommended by Investors Associates, Inc. During the period November 1995 through November 1996, while working for Investors Associates, Inc., Respondent participated in public offerings of Perry's Majestic Beer, Inc. and other securities, many of which were penny stocks within the meaning of Section 3(a)(51) of the Exchange Act, 15 U.S.C. 78c(a)(51), and Rule 3a51-1 thereunder.

C. On May 23, 2002, the United States District Court for the Southern District of New York, pursuant to his plea of guilty, found Respondent Stuerken guilty of violations of Section 10(b) of the Exchange Act, 15 U.S.C. 78j(b), and Rule 10b-5 thereunder, and 18 U.S.C. 371. He was sentenced to a prison term of 24 months followed by three years of supervised release and ordered to make restitution in the amount of $108,239.00.

D. The Court found that Respondent made, and participated with others in making, materially false or misleading statements and omissions to brokerage customers concerning the purchase and sale of securities, many of which were penny stocks within the meaning of Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder.

IV.

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

Accordingly, it is hereby ORDERED:

  1. Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Stuerken be, and hereby is, barred from association with any broker or dealer; and
     
  2. 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; and
     
  3. Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Stuerken 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 of or trading in any penny stock; or inducing or attempting to induce the purchase or sale of any penny stock.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary


http://www.sec.gov/litigation/admin/34-49303.htm


Modified: 02/23/2004