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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Investment Advisers Act of 1940
Release No 2211 / February 3, 2004

Administrative Proceeding
File No. 3-11365


 
In the Matter of
 
PAUL JOSEPH SHEEHAN,
dba PAUL J. SHEEHAN &
ASSOCIATES
 

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ORDER MAKING FINDINGS
AND IMPOSING REMEDIAL
SANCTION BY DEFAULT

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) on December 29, 2003, pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act). Paul Joseph Sheehan d/b/a Paul J. Sheehan & Associates (Sheehan) was served with the OIP on January 6, 2004, and his Answer was due twenty days later, by January 26, 2004. See 17 C.F.R. § 201.220(b). Sheehan has not filed an Answer. On January 30, 2004, the Division of Enforcement (Division) filed a motion for default. Because he failed to file an Answer, Sheehan is now in default pursuant to Rules 155(a) and 220(f) of the Commission's Rules of Practice, 17 C.F.R. §§ 201.155(a), .220(f).

As authorized under 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:

Sheehan, age 64, is a resident of West Hollywood, California. From 1989 through 2003, Sheehan conducted business as Paul J. Sheehan & Associates, a sole proprietorship. Sheehan was registered with the Commission as an investment adviser from 1989 through March 31, 2003 (File No. 801-34484).

On October 14, 2003, the United States District Court for the Central District of California entered a consent judgment against Sheehan, permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 207 of the Advisers Act. SEC v. Sheehan, Civil Action No. LACV03-7012 MMM (PJWx).

The Commission's Complaint alleged that, in his capacity as an investment adviser and in connection with the purchase and sale of securities, Sheehan engaged in a fraudulent, cherry-picking scheme whereby he improperly allocated profitable securities trades to his personal accounts at the expense of his clients' accounts, falsely stated that he would give absolute priority to client accounts, and otherwise engaged in conduct, which operated as a fraud and deceit upon his clients.

In light of the foregoing, I find that, pursuant to Section 203(f) of the Advisers Act, it is in the public interest to bar Sheehan from association with an investment adviser.

ORDER

IT IS ORDERED that, pursuant to Section 203(f) of the Investment Advisers Act of 1940, Paul Joseph Sheehan d/b/a Paul J. Sheehan & Associates is hereby BARRED from association with an investment adviser.

 

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Robert G. Mahony
Administrative Law Judge

 

http://www.sec.gov/litigation/admin/ia-2211.htm


Modified: 02/03/2004