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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. 49651 / May 4, 2004

INVESTMENT ADVISERS ACT OF 1940 Release No. 2234 / May 4, 2004

ADMINISTRATIVE PROCEEDING File No. 3-11476


In the Matter of

JOHN P. BORBI

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 John P. Borbi ("Borbi" 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. C 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:

A. Borbi, age 35, is a resident of Northville, Michigan. From January 1995 through May 2002, Borbi was employed by MML Investor Services, Inc. ("MML"), a broker-dealer and investment adviser registered with the Commission. At all relevant times, Borbi was a registered representative and investment advisory representative at MML.

B. On February 25, 2004, Borbi was charged in an information filed by the United States Attorney's Office for the Eastern District of Michigan. The information alleged that from July 2001 through February 2002, Borbi defrauded Robert and Sondra Meer (investment advisory clients of Borbi) by transferring approximately $480,750 from their account to various other accounts for Borbi's personal use.

C. On February 25, 2004, Borbi pled guilty to one count of wire fraud [18 U.S.C. 1343] before the United District Court for the Eastern District of Michigan, in United States v. John Borbi, Criminal Indictment No. 03-60272 (MOB).

IV.

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

Accordingly, it is hereby ORDERED:

A. Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of Advisers Act, that Respondent Borbi be, and hereby is, barred from association with any broker, dealer or investment adviser.

B. 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.

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

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-49651.htm


Modified: 05/05/2004