SECURITIES EXCHANGE ACT OF 1934
Release No. 49795 / June 2, 2004

Admin. Proc. File No. 3-11507

Commission Institutes Administrative Proceedings Against Richard Wolff, Alex Grinshpon, Alex Solon, and Jeffery Stone

The Securities and Exchange Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (the "Order") against Richard Wolff, Alex Grinshpon, Alex Solon, and Jeffery Stone (the "Respondents"). The Division of Enforcement alleges the Respondents were convicted and enjoined based on their participation in a fraudulent scheme to manipulate the public trading market for securities of International Investment Group Ltd. (IIGR) through the payment of undisclosed bribes to various registered representatives and other individuals who sold IIGR stock to the public without disclosing payment of the bribes. The scheme occurred that from June 1995 through February 1996.

Specifically, the Division of Enforcement alleges in the Order that: on November 6, 1997, Wolff pleaded guilty to one count of conspiracy to commit securities fraud, wire fraud and commercial bribery in violation of 18 U.S.C. ' 371, and one count of wire fraud in violation of 18 U.S.C. " 2, 1343 and 1346 [United States v. Richard Wolff, 97 Cr. 1156 (S.D.N.Y.) (MBM)]; on March 31, 1999, Grinshpon pleaded guilty to two counts of conspiracy to commit securities fraud, wire fraud and commercial bribery in violation of 18 U.S.C. ' 371 [United States v. Mark Zaborsky, et al., 98 Cr. 1037 (Alex Grinshpon) (S.D.N.Y.) (MBM)]; on March 26, 1999, Solon pleaded guilty to one count of conspiracy to commit securities fraud, wire fraud and commercial bribery in violation of 18 U.S.C. ' 371 [United States v. Mark Zaborsky, et al., 98 Cr. 1037 (Alex Solon) (S.D.N.Y.) (LAK)]; and on September 21, 1999, Stone pleaded guilty to one count of conspiracy to commit wire fraud and commercial bribery in violation of 18 U.S.C. ' 371, and two counts of wire fraud in violation of 18 U.S.C. " 2, 1343 and 1346 [United States v. Jeffrey Stone, 97 Cr. 1034 (S.D.N.Y.) (JSM)].

The Division of Enforcement also alleges in the Order that on July 2, 2003, Wolff was permanently enjoined by the United States District Court for the Southern District of New York from violating Section 17(a) of the Securities Act of 1933 (ASecurities Act@), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The Order further alleges that on June 26, 2003, Grinshpon, Solon, and Stone were permanently enjoined by the United States District Court for the Southern District of New York from violating Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. [SEC v. Leonard Alexander Ruge, et al., 97 Civ. 9306 (S.D.N.Y.) (DAB).]

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to afford the Respondents an opportunity to establish any defenses to such allegations, and to determine what, if any, remedial action is appropriate and in the public interest.

Pursuant to the Commission's Rules of practice, an initial decision shall be issued by the administrative law judge within 210 days from the service of the Order upon the Respondents.

See also the Order in this matter