SECURITIES EXCHANGE ACT OF 1934
Release No. 50933 / December 27, 2004

ADMINISTRATIVE PROCEEDING
File No. 3-11784

SEC INSTITUTES ADMINISTRATIVE PROCEEDING AGAINST FORMER REGISTERED REPRESENTATIVE DIMITRIOS KOSTOPOULOS BASED ON CRIMINAL CONVICTION

The Commission issued today an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act) (Order) against Dimitrios Kostopoulos (Kostopoulos). In the Order, the Division of Enforcement (Division) alleges that on August 15, 2002, Kostopoulos pleaded guilty to one count of conspiracy to commit securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff and that on June 6, 2003, a judgment of conviction was entered against him. See U.S. v. Dimitrios Kostopoulos, (02-CR-504) (E.D. N.Y.).

The U.S. Attorney for the Eastern District of New York filed the indictment against Kostopoulos and others on April 29, 2002. Count One of the criminal indictment charged Kostopoulos and others with conspiracy to commit securities fraud. The indictment states that Kostopoulos was a licensed stockbroker employed by National Discount Brokers (NDB). Count One of the indictment, to which Kostopoulos pleaded guilty, alleged that Kostopoulos conspired with others to commit securities fraud by, among other things, during September 2000, purchasing 200 shares of WLRF Foods, Inc. (WLRF) on behalf of himself, and 2,000 shares of WLRF stock on behalf of another co-conspirator, while in possession of material non-public information regarding a merger involving WLRF.

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

The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of this Order.

See also the Order in this matter