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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. 49908 / June 23, 2004

ADMINISTRATIVE PROCEEDING
File No. 3-11419


In the Matter of

MICHAEL PUORRO,
WALTER DOROW,
JAMES C. PARRISH,
GEOFFREY W. GAZDA,
MELVIN L. LEVINE,
MICHAEL T. REITER,
BRUCE BERTMAN,
JERRY POOLE,
and LARRY W. KERSCHENBAUM


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ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION BY DEFAULT AGAINST LARRY W. KERSCHENBAUM

The Securities and Exchange Commission ("Commission") issued an Order Instituting Proceedings ("OIP") on March 3, 2004, pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"). Respondent Kerschenbaum was personally served with the OIP on May 4, 2004. The Division of Enforcement ("Division") filed a Motion for Entry of a Default Order Against Larry W. Kerschenbaum ("Default Motion") on June 9, 2004.

Findings

Rules 155(a) and 220(f) of the Commission's Rules of Practice provide that a party may be deemed to be in default and the hearing officer may make determinations based on the record, including the OIP, which allegations may be deemed to be true, if that party fails to: answer the OIP within the time specified, respond to a dispositive pleading, or appear at a prehearing conference where there was notice. 17 C.F.R. 201.155(a), .220(f).

Respondent Kerschenbaum did not file an answer to the OIP, and he did not file a response to the Default Motion.1 I GRANT the Default Motion, and I find that the following allegations in the OIP are true as to Respondent Kerschenbaum.

At all relevant times, Respondent Kerschenbaum, a forty-three-year-old resident of Wellington, Florida, was a shareholder of A1 Internet.com ("A1"), a penny stock as that term is defined in the Exchange Act and rules promulgated thereunder. The information filed on May 19, 2003, in United States v. Kerschenbaum, Case No. 03-20400-CR-Seitz (S.D. Fla.), charged Respondent Kerschenbaum with conspiracy to commit securities fraud by agreeing with certain other Respondents to bribe brokers in order to artificially increase the price of A1 stock. Respondent Kerschenbaum pled guilty to the charge on June 13, 2003, and he was sentenced to four years of probation on October 21, 2003.

Order

Based on these findings and public interest considerations, I ORDER that Larry W. Kerschenbaum is barred from participating in an offering of penny stock pursuant to Section 15(b) of the Securities Exchange Act of 1934.

_______________________________
Brenda P. Murray
Chief Administrative Law Judge

Endnotes

 

http://www.sec.gov/litigation/admin/34-49908.htm


Modified: 06/23/2004