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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. 50194 / August 13, 2004

Admin. Proc. File No. 3-11588


In the Matter of

Daniel Harris,

Respondent.



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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 Daniel Harris ("Harris" 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.2 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:

1. In 2001, Harris was a registered representative associated with Prime Charter, Ltd., a broker-dealer registered with the Commission. Harris, 25 years old, is a resident of New York, New York.

2. On August 3, 2004, a final judgment was entered by consent against Harris, inter alia, permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in the civil action entitled Securities and Exchange Commission v. Michael J. McCloskey, Rance C. Miles, Luis E. Vallejo, and Daniel Harris, Case Number 1:04CV01294, in the United States District Court for the District of Columbia.

3. The Commission's complaint alleged that Harris purchased 100 shares of Dean Foods Company common stock on April 4, 2001, the day before the public announcement that Suiza Foods Corporation would acquire and merge with Dean Foods. The complaint further alleged that Harris purchased the Dean Foods stock while in possession of material nonpublic information that he received from one of his clients and that was obtained in breach of a duty owed to the source of the information. In addition, the complaint alleged that Harris tipped one of his other clients on April 4, 2001, recommending that the client sell short the stock of Suiza Foods Corporation. The complaint alleges that Harris' client acted on the recommendation, selling short 100 shares of Suiza Foods common stock that day. According to the Commission's complaint, Harris realized illegal profits of $541.00 on the sale of Dean Foods stock on April 5, 2001 after the merger was publicly announced. Harris' client also allegedly realized $82.00 in illegal profits on April 5, 2001 when he closed his short position in Suiza Foods stock.

IV.

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

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act that Respondent Harris be, and hereby is barred from association with any broker or dealer with the right to reapply for association after two (2) years to the appropriate self-regulatory organization, or if there is none, to the Commission;

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.

Jonathan G. Katz
Secretary


http://www.sec.gov/litigation/admin/34-50194.htm


Modified: 08/13/2004