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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. 2287/August 30, 2004

Admin. Proc. File No. 3-11567


In the Matter of

DOMINIQUE S. ALVIERI



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ORDER MAKING FINDINGS AND IMPOSING SANCTION BY DEFAULT

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) on July 28, 2004, pursuant to Section 203(f) of the Investment Advisers Act of 1940. The Office of the Secretary has provided evidence that Respondent Dominique S. Alvieri (Alvieri) received the OIP on August 3, 2004.

Under the terms of the OIP and Rule 220 of the Commission's Rules of Practice, Alvieri's Answer was due no later than August 23, 2004. No Answer has been filed, and Alvieri is therefore in default. As authorized by Rule 155(a) of the Commission's Rules of Practice, I find the following allegations of the OIP to be true:

Alvieri, age thirty-six, is a former resident of Little Ferry, New Jersey, and Toronto, Ontario, Canada. He is currently in the custody of the United States Bureau of Prisons. Between approximately January 1996 and April 1999, Alvieri, individually or acting through a corporation he controlled, Diversified Financial Corporation, engaged for compensation in the business of advising clients on investing in securities.

On July 31, 2003, Alvieri pleaded guilty to three felony counts of investment advisory fraud and one felony count of mail fraud in violation of 15 U.S.C. 80b-6 and 80b-17 and 18 U.S.C. 1341 before the United States District Court for the Southern District of New York. United States v. Alvieri, 02 Cr. 084 (S.D.N.Y.) (GEL). On June 4, 2004, a judgment in the criminal case was entered against Alvieri. He was sentenced to a prison term of forty-two months, followed by three years of supervised release. He was also ordered to make restitution in the amount of $622,204.04.

The felony counts to which Alvieri pleaded guilty alleged, among other things, that, between approximately January 1996 and April 1999, Alvieri (a) used fraudulent misrepresentations and omissions of material fact to induce three advisory clients to give him a total of at least $660,804 to invest on their behalf; (b) misappropriated and diverted for his personal use a substantial portion of the funds given to him by these advisory clients; and (c) used the United States mails or commercial interstate carriers to perpetrate his fraud.

In view of the above, I find that remedial action is appropriate in the public interest, and that Alvieri should be barred from association with any investment adviser.

IT IS ORDERED THAT, pursuant to Section 203(f) of the Investment Advisers Act of 1940, Dominique S. Alvieri is barred from association with any investment adviser.

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James T. Kelly
Administrative Law Judge


http://www.sec.gov/litigation/admin/ia-2287.htm


Modified: 08/30/2004