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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. 50623 / November 3, 2004

Admin. Proc. File No. 3-11573


In the Matter of

Harold F. Harris, and Ronald E. Crews,



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ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS BY DEFAULT

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) on August 3, 2004, pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). Respondents Harold F. Harris (Harris) and Ronald E. Crews (Crews) were each served with the OIP on August 7, 2004, and their Answers were initially due by August 27, 2004. See 17 C.F.R. 201.220(b); OIP at 3. I granted Harris and Crews two extensions of time to file their Answers: the first extension until September 10, 2004; the second until September 21, 2004. (Orders of August 31 and September 15, 2004). To date, neither Harris nor Crews has filed an Answer.

On October 15, 2004, the Division of Enforcement (Division) filed a motion for entry of a default order against Harris and Crews. On October 19, 2004, I issued an order requiring Harris and Crews to show cause on or by October 29, 2004, why they should not be held in default and why they should not be barred from participating in an offering of penny stock. As of today, Harris and Crews have failed to show such cause.

Harris and Crews are in default for failing to file their Answers within the time permitted. See 17 C.F.R. 201.155, .220. As authorized by Rule 155(a) of the Commission's Rules of Practice, 17 C.F.R. 201.155(a), I find the following allegations in the OIP to be true:

Harris, age sixty-two, was a resident of Jacksonville, Florida, and served as executive vice president and as a director of U.N. Dollars Corp. (U.N. Dollars) between 1999 and 2001. During that time, Harris also acted as U.N. Dollars' stock transfer agent, maintained the common stock registry, and issued stock upon approval of the board of directors.

Crews, age fifty-four, was a resident of Jacksonville, Florida, and served as chairman, chief executive officer, and president of U.N. Dollars between 1999 and 2001.

Harris and Crews participated in an offering of U.N. Dollars common stock, which is a penny stock.

On October 11, 2001, the Commission filed a complaint seeking a permanent injunction against Harris, Crews, the public company they operated then known as U.N. Dollars, and several other individuals and entities. The complaint alleged that Harris and Crews violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. As part of the action, the Commission requested ancillary relief in the form of disgorgement, prejudgment interest, officer and director bars, and penalties.

The Commission's complaint alleged that, from August 1999 through March 2000, Harris and Crews participated in a scheme to defraud investors when they entered into a contract to artificially inflate the price and trading volume of U.N. Dollars securities. The complaint alleged that Harris and Crews improperly provided ten million free-trading, unregistered U.N. Dollars shares to a stock manipulator as payment for increasing U.N. Dollars' stock price and volume. The complaint alleged that the stock manipulator traded these shares among numerous brokerage accounts that he controlled in order to artificially increase the volume and price for U.N. Dollars securities. According to the complaint, at the stock manipulator's direction, Harris and Crews issued six materially false and misleading press releases in February 2000 to create a false story to support a rising market for U.N. Dollars securities. As a result of the manipulation, U.N. Dollars securities increased in value from $0.01 per share (when virtually no shares were traded) to a price of $1.25 per share (when hundreds of thousands of shares traded daily).

On March 13, 2003, the United States District Court for the Southern District of New York entered a final judgment of default against Harris and Crews, permanently enjoining them from violating Sections 5(a), 5(c), and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, barring them from acting as officers and directors of public companies pursuant to Section 12 of the Exchange Act, ordering them (jointly and severally) to pay disgorgement and prejudgment interest of $2,350,566.99, and ordering each of them to pay a civil penalty in the amount of $110,000.1

In view of the foregoing, I find that it is in the public interest to bar Harris and Crews from participating in an offering of penny stock.

ORDER

IT IS ORDERED THAT, pursuant to Section 15(b) of the Securities Exchange Act of 1934, Harold F. Harris is hereby barred from participating in an offering of penny stock.

IT IS FURTHER ORDERED THAT, pursuant to Section 15(b) of the Securities Exchange Act of 1934, Ronald E. Crews is hereby barred from participating in an offering of penny stock.

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Lillian A. McEwen
Administrative Law Judge


Endnotes


http://www.sec.gov/litigation/admin/34-50623.htm


Modified: 11/03/2004