UNITED STATES SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 39005 / September 2, 1997 INVESTMENT ADVISERS ACT OF 1940 Release No. 1656 / September 2, 1997 ADMINISTRATIVE PROCEEDING File No. 3-9387 In the Matter of August Mezzetta The Commission announced that on September 2, 1997, it instituted public administrative proceedings against August Mezzetta ("Mezzetta"). The Order Instituting Public Proceedings ("Order") alleges as follows: On December 5, 1996, Mezzetta was convicted of conspiring to steal from an employee pension plan ("Plan") subject to Title I of the Employee Retirement Income Security Act of 1974 ("ERISA"), stealing from the Plan, making false statements and representations of fact and failing to disclose facts in documents provided to the Plan, and making false statements and representations of fact and failing to disclose facts in documents required by ERISA. United States v. August Mezzetta, Judgment, Case No. 3:95CR2 (D. Conn. Dec. 5, 1996). The conduct underlying Mezzetta's conviction occurred from approximately 1981 through 1991 while he was the president and co- owner of GB Resources, Inc., a registered investment adviser, and was associated with a broker-dealer. On December 5, 1996, Mezzetta was sentenced to imprisonment for 87 months and ordered to pay a special assessment of $200. On January 9, 1997, Mezzetta was ordered to pay $2,819,250 in restitution to the Plan. A hearing will be scheduled to determine whether the allegations are true and what, if any, remedial action is appropriate in the public interest against Mezzetta. ======END OF PAGE 1======