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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. 50334 / September 9, 2004

Admin. Proc. File No. 3-11638


In the Matter of

FIORE J. GALLUCCI,

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 Fiore J. Gallucci ("Respondent" or "Gallucci").

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. Gallucci, age 63, resides in Staten Island, New York. From July 1, 1997 to August 27, 1999, Gallucci was associated with Aubrey G. Lanston & Co., Inc., a broker-dealer registered with the Commission.

2. On September 3, 2004, a Final Judgment was entered by consent against Gallucci, permanently enjoining him from future violations of Sections 10(b) and 14(e) of the Exchange Act and Exchange Act Rules 10b 5 and 14e 3, in the civil action entitled U.S. Securities and Exchange Commission v. Fiore J. Gallucci, et al., 04 CV 04493 (SAS), in the United States District Court for the Southern District of New York.

3. The Commission's Complaint in U.S. Securities and Exchange Commission v. Fiore J. Gallucci, et al. alleged that, at various times during 1998 and 1999, Gallucci learned the names of certain publicly traded companies that were the targets of unannounced merger or acquisition plans from his wife, a secretary for a partner at a major corporate law firm. Gallucci's wife learned this confidential information in the course of her employment and disclosed this information to him after Gallucci expressly assured her that he would not disclose it to others or use it for trading purposes. Gallucci misappropriated this material, nonpublic information from his wife by disclosing it and its source to a long-time friend. After Gallucci tipped his friend, the friend purchased the target companies' securities and tipped other individuals, who also purchased some of those securities. One of the individuals tipped by Gallucci's friend tipped additional individuals, and at least one of those individuals tipped still others. The illegal trading profits of those trading as a result, directly or indirectly, of Gallucci's tipping ultimately aggregated at least $3 million.

IV.

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

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Gallucci 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.

Jonathan G. Katz
Secretary


http://www.sec.gov/litigation/admin/34-50334.htm


Modified: 09/09/2004