The Securities and Exchange Commission announced today that on March 31, 2004, the United States District Court for the Southern District of New York entered a final judgment against Deborah J. Breckenridge, a former registered representative with Suncoast Capital Group, Ltd. The Commission had charged Breckenridge with defrauding New York Life Insurance Company, Inc. by giving commission kickbacks, gifts, and gratuities to a former New York Life employee. In exchange, the former New York Life employee directed securities trades on behalf of New York Life to Breckenridge, at prices that favored Suncoast Capital to the detriment of New York Life. Breckenridge consented to the final judgment without admitting or denying the allegations in the Commission's complaint. The judgment permanently restrains and enjoins Breckenridge from violating or aiding and abetting violations of antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment orders Breckenridge to pay $236,562 in disgorgement and prejudgment interest and deems that $190,000 is satisfied by Breckenridge's payment of that amount to New York Life. The remainder of Breckenridge's disgorgement obligation shall be deemed satisfied upon payment of restitution in the amount of $136,394 to New York Life, as ordered against Breckenridge in a parallel criminal case, U.S. v. Deborah Breckenridge, 01 Cr. 248 (JGK). Previously, Breckenridge had pleaded guilty to criminal charges of securities fraud arising from the same scheme. In the criminal proceeding, in addition to the restitution order, Breckenridge was sentenced to eighteen months in prison.

Today, the Commission also instituted and settled administrative proceedings against Breckenridge. Breckenridge consented to an order, based on the entry of final judgment against her in the Commission's civil enforcement action and on her prior criminal conviction, barring her from association with any broker or dealer.

With this settlement, the Commission has concluded this action against four of the five original defendants, each of whom also was criminally convicted for the underlying conduct. The action with regard to the remaining defendant is being litigated.

[See also Litigation Release No. 16937, March 22, 2001; Litigation Release No. 18478, November 24, 2003; and Litigation Release No. 18556, January 28, 2004]