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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. 49394 / March 11, 2004

ADMINISTRATIVE PROCEEDING
File No. 3-11429


In the Matter of

ROBERT B. DIMARCO, JR.,

Respondent.


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ORDER INSTITUTING ADMINISTRATIVE
PROCEEDINGS PURSUANT TO SECTION
15(b)(6) OF THE SECURITIES EXCHANGE
ACT OF 1934, 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)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Robert B. DiMarco, Jr. ("DiMarco" or "Respondent").

II.

In anticipation of the institution of these proceedings, Respondent 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.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b)(6) 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 Respondent's Offer, the Commission finds that:

1. DiMarco, 36, is a resident of Lake Worth, Florida. From October 1996 to August 1998, DiMarco was an undisclosed principal of The Hamilton Shea Group, Inc. ("Hamilton Shea"), a broker-dealer registered with the Commission.

2. On June 26, 2001, DiMarco pled guilty to one count of conspiracy to commit securities, mail and wire fraud in violation of Title 18 United States Code, Section 371, before the United States District Court for the Middle District of Florida, in United States v. DiMarco, Case No. 01-CR-116. On November 1, 2002, a judgment in the criminal case was entered against DiMarco. He was sentenced to a term of five years probation and was ordered to make restitution in the amount of $300,000.

3. The count of the criminal information to which DiMarco pled guilty alleged that DiMarco knowingly and willfully conspired with others to defraud investors and obtain money and property by means of materially false and misleading statements, through the use of the United States Mail, commercial interstate carriers and wire interstate facilities. The information alleged that, from at least December 1996 through December 1997, DiMarco used undisclosed nominee accounts to gain control over the trading in, and to artificially inflate the prices of, the securities of Certified Diabetic Services, Inc., among other securities. In addition, the information alleged that DiMarco and others filed false documents with the Commission that concealed their ownership of Hamilton Shea, and directed Hamilton Shea brokers to make false and misleading statements in connection with the sale of the securities to the public.

4. Respondent participated in an offering of Certified Diabetic Services, Inc. stock, which is a penny stock.

IV.

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

Accordingly, it is hereby ORDERED:

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

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,

B. Respondent DiMarco 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

 

http://www.sec.gov/litigation/admin/34-49394.htm


Modified: 03/11/2004