SECURITIES EXCHANGE ACT OF 1934 Release No. 49558 / April 13, 2004
ADMINISTRATIVE PROCEEDING File No. 3-11456
In the Matter of Deborah J. Breckenridge, Respondent. |
: : : : : : : : : : |
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) 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) of the Securities Exchange Act of 1934 ("Exchange Act") against Deborah J. Breckenridge ("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 her and the subject matter of these proceedings, and the findings contained in Section III.2 and III.4 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, 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:
From 1993 to 1999, Breckenridge was a registered representative at Suncoast Capital Group, Ltd. ("Suncoast"), a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act from 1993 to 2000.
On March 31, 2004, Breckenridge was permanently restrained and enjoined by the United States District Court for the Southern District of New York (Securities and Exchange Commission v. Anthony Dong-Yin Shen, et al., Civil Action Number 01 Civ. 2438 (GBD)) from violating, directly or indirectly, and aiding and abetting any violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and from violating Section 17(a) of the Securities Act of 1933 ("Securities Act").
The Commission's complaint alleged, among other things, that Breckenridge engaged in a scheme in which she gave kickbacks, other cash payments, and improper gifts and gratuities to Anthony Dong-Yin Shen ("Shen"), a bond trader at New York Life Insurance Company, Inc. ("New York Life"). In return, Shen sent Breckenridge a flow of New York Life securities transactions, frequently at prices that favored her employer, Suncoast, at the expense of New York Life.
On March 19, 2002, Breckenridge pleaded guilty to conspiring to commit securities fraud, mail fraud, wire fraud, and commercial bribery in violation of Title 18, United States Code, Section 371, and committing securities fraud in violation of Title 15, United States Code, Sections 78(j)(B) and 78(f)(F); Title 17, Code of Federal Regulation, Section 240.10(b)(5); and Title 18, United States Code, Section 2 before the United States District Court for the Southern District of New York, in United States v. Deborah Breckenridge, 01 Cr. 248 (JGK). On October 4, 2002, a judgment in the criminal case was entered against Breckenridge. She was sentenced to a prison term of eighteen months and ordered to make restitution in the amount of $136,000.
The counts of the criminal information to which Breckenridge pleaded guilty alleged, among other things, that Breckenridge defrauded New York Life and obtained money and property by means of providing Shen with illegal kickbacks, that she used wire communications and the United States mails to carry out the kickback scheme, and that she traveled and used facilities in interstate commerce to facilitate commercial bribery.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction specified in Respondent Breckenridge's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Breckenridge 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.
By the Commission.
Secretary