UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7582 / September 23, 1998
SECURITIES EXCHANGE ACT OF 1934
Release No. 40464 / September 23, 1998
ADMINISTRATIVE PROCEEDING
File No. 3-9456
______________________________________
:
In the Matter of : ORDER MAKING FINDINGS
: AND IMPOSING A
RAYMOND R. NEWBERG, : CEASE-AND-DESIST ORDER
:
Respondent. :
:
______________________________________:
I.
In this cease-and-desist proceeding instituted pursuant
to Section 8A of the Securities Act of 1933 ("Securities
Act") and Section 21C of the Securities Exchange Act of 1934
("Exchange Act"), Respondent Raymond R. Newberg ("Newberg"
or "Respondent") has submitted an Offer of Settlement
("Offer") which the Commission has determined to accept.
Solely for the purpose of this proceeding and any other
proceedings brought by or on behalf of the Commission or in
which the Commission is a party, and without admitting or
denying the findings contained herein, except that Newberg
admits the jurisdiction of the Commission over him and the
subject matter of this proceeding, Newberg, by his Offer,
consents to the findings and the imposition of a Cease-And-
Desist Order as contained in this Order Making Findings and
Imposing A Cease-and-Desist Order ("Order").
II.
On the basis of this Order, the Order Instituting
Cease-and-Desist Proceedings Pursuant to Section 8A of the
Securities Act of 1933 and Section 21C of the Securities
Exchange Act of 1934, and the Offer submitted by the
Respondent, the Commission finds that: [1]
A. Newberg, age 33, resides in Mesa, Arizona and has
never been registered with the Commission in any capacity.
B. Newberg caused violations of Section 17(a) of the
Securities Act, Section 10(b) of the Exchange Act, and Rule
10b-5 thereunder by allowing a bank account held in his name
to be used to receive and distribute proceeds from
fraudulent securities transactions by two former registered
representatives in June 1991 and July 1991.
C. Newberg caused violations of Section 17(a) of the
Securities Act, Section 10(b) of the Exchange Act, and Rules
10b-5 and 10b-9 thereunder by allowing a bank account held
in his name to be used from September 1991 through March
1992 to receive and distribute proceeds from fraudulent
transactions by two former registered representatives in the
offer, purchase, and sale of securities issued in a public
offering by U.S. Pawn, Inc. ("U.S. Pawn"). These fraudulent
transactions involved the registered representatives' use of
an undisclosed nominee to purchase and sell the U.S. Pawn
securities.
D. Newberg caused violations of Section 17(a) of the
Securities Act, Section 10(b) of the Exchange Act, and Rules
10b-5 and 10b-9 thereunder by acting as an undisclosed
nominee for two registered representatives in connection
with the fraudulent offer, purchase, and sale of securities
issued in a public offering by U.S. Pawn from August 1991 to
March 1992.
E. Newberg caused violations of Section 17(a) of the
Securities Act, Section 10(b) of the Exchange Act, and Rule
10b-5 thereunder by allowing a bank account held in his name
to be used in September 1992 to receive and distribute
proceeds from two former registered representatives'
fraudulent offer, purchase, and sale of securities issued in
a public offering by 2 Bi 2, Inc ("2 Bi 2"). These
fraudulent transactions involved the registered
representatives' use of an undisclosed nominee to purchase
and sell the 2 Bi 2 securities.
III.
On the basis of the foregoing, the Commission deems it
appropriate to impose the cease-and-desist order specified
in the Respondent's Offer.
Accordingly, IT IS HEREBY ORDERED that:
**FOOTNOTES**
[1]: The findings herein are made pursuant to the Offer of
Settlement of Newberg and are not binding on any other
person or entity named as a respondent in this or any
other proceeding. Newberg shall, effective immediately,
cease and desist from committing or causing any violation
and any future violation of Section 17(a) of the Securities
Act and Section 10(b) of the Exchange Act and Rules 10b-5
and 10b-9 thereunder.
By the Commission.
Jonathan G. Katz
Secretary