UNITED STATES OF AMERICA
|In the Matter of||ORDER DECLARING INITIAL|
|DECISION FINAL AS TO|
|STIRES & CO., INC., and||RESPONDENT STIRES & CO., INC.,|
|SIDNEY H. STIRES,||EXCEPT REDUCING AMOUNT OF|
A.The Securities and Exchange Commission instituted public administrative proceedings against respondents Stires & Co., Inc. (now known as Stires, O'Donnell & Company, Inc.), and Sidney H. Stires on September 30, 1996, pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 21C and 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").
B.The law judge held a hearing in this matter on February 3, 4, and 5, 1997. Stires & Co., Inc. ("Stires & Co."), did not present evidence concerning its financial condition at the hearing.
C.The law judge issued an Initial Decision on August 11, 1998 (Initial Decision Release No. 130), in which she found that both respondents had willfully violated Section 17(a) of the Securities Act and were a cause of and willfully aided and abetted other violations of Section 17(a) of the Securities Act; caused and willfully aided and abetted violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and caused and aided and abetted violations of Rule 15(a) of the Exchange Act.
D.In the Initial Decision, the law judge ordered that Mr. Stires be suspended from being associated with a broker or dealer for ninety days; that both respondents cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5; that Stires & Co. pay a civil penalty of $300,000; and that Mr. Stires pay a civil penalty of $100,000.
E.Mr. Stires has paid the civil penalty and served the suspension imposed on him by the Initial Decision.
F.Stires & Co. filed a petition for review of the Initial Decision on or about September 7, 1998, which the Commission granted on September 28, 1998.
G.On November 9, 1998, the Commission granted Stires & Co.'s unopposed motion to remand the proceedings to the law judge for consideration of its ability to pay the civil money penalty assessed against it.
H.Stires & Co. filed a Statement of Position dated February 18, 1999, concerning its ability to pay, and thereafter provided the Division of Enforcement with audited financial statements of Stires, O'Donnell & Company, Inc., as of December 31, 1998.
Stires & Co. has submitted an Offer of Settlement to the Commission, which the Commission has determined to accept. By its Offer of Settlement, Stires & Co. consents to the entry of this Order and the relief ordered herein.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Stires & Co.'s Offer of Settlement.
Accordingly, IT IS HEREBY ORDERED that:
By the Commission.
Jonathan G. Katz
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