Securities Act of 1933 Release No. 7477 / December 1, 1997 Securities Exchange Act of 1934 Release No. 39375 / December 1, 1997 Administrative Proceeding File No. 3-9491 COMMISSION ISSUES ORDER INSTITUTING ADMINISTRATIVE AND CEASE AND DESIST PROCEEDINGS AGAINST FIVE FORMER PRINCIPALS AND ONE FORMER REGISTERED REPRESENTATIVE OF STRATTON OAKMONT, INC. The Securities and Exchange Commission Issued An Order Instituting Administrative and Cease and Desist Proceedings against Eric S. Blumen, Ira A. Boshnack, Andrew S. Friedman, Jordan I. Shamah and Irving Stitsky, all former principals and registered representatives ("RRs"), and Douglas C. Miller, a former RR, at the now defunct Stratton Oakmont, Inc. Stratton Oakmont, Inc. was a broker-dealer which had previously been a defendant and respondent in several Commission enforcement actions. The Commission's Order alleges that Blumen, Boshnack, Friedman and Miller willfully aided and abetted and caused Stratton to violate the provisions of the federal securities laws which prohibit broker-dealers from effecting securities transactions if their RRs and principals have not passed the appropriate licensing exams. Stratton effected securities transactions, through principals Blumen and Boshnack, even though neither had actually taken and passed the National Association of Securities Dealers, Inc.'s ("NASD") Series 24 exam which is required in order for a person to be a principal of a broker-dealer. Moreover, Boshnack had never actually taken the NASD's Series 7 exam which is required before a person can become a registered representative at a broker-dealer. Miller, posing as Boshnack, took and passed the licensing exams on behalf of Boshnack, and Friedman, posing as Blumen, took and passed the licensing exam for principals on behalf of Blumen. The Commission's Order also alleges that while at Stratton, Blumen, Boshnack, Friedman, Shamah and Stitsky violated the antifraud provisions of the securities laws by making baseless price predictions to at least eight customers regarding the securities of companies for which Stratton had underwritten the initial public offerings, including, but not limited to, the securities of Dualstar Technologies, Inc., Octagon, Inc., Select Media Communications, Inc., Solomon-Page Group, Ltd., Inc. and/or United Leisure Corporation. The Commission further alleges that Blumen, Boshnack, Friedman, as well as Shamah and Stitsky, made numerous unauthorized purchases of securities, including the securities listed above and others, in the accounts of at least thirteen customers. The Commission seeks remedial sanctions, cease and desist orders, and disgorgement of any ill-gotten gains against all of the respondents, as well as civil penalties against Shamah and Stitsky. For further information see Lit Rel. ## 13195, 13421, 13955, 14355, 14360, 14380, 14426, 14498, 14506, 15313, & 15333.