SECURITIES ACT OF 1933
Release No. 7677 / May 11, 1999

ADMINISTRATIVE PROCEEDING
File No. 3-9893

PUBLIC CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST DERRICK C. JOHNSON.

The Commission announced that it instituted public cease-and-desist proceedings against Derrick C. Johnson ("Johnson"). The Order Instituting Proceedings ("Order") alleges that Johnson made material misrepresentations in connection with the offer of "prime bank" securities through the use of the Internet.

Specifically, the Order alleges that from approximately May 1998 through February 1999, Johnson offered securities to potential investors through three websites on the Internet. In each case, Johnson established the website under the d.b.a. Global Financial Group ("Global"). The Order further alleges that on the Global websites, Johnson made several misrepresentations of material facts regarding Global and the securities it was offering. The Order alleges that Johnson misrepresented the returns available (from 50% to 1600% in 3 to 120 plus days) on the investments and the existence of the securities themselves. Johnson also misrepresented that the securities would be "100% insured" and "guaranteed in writing." Finally, the Order alleges that Johnson falsely represented that Global had clients in over twenty countries when, in fact, Global had no clients and no operations aside from the three websites Johnson created.

The Order alleges violation of Sections 17(a)(1) and (3) of the Securities Act of 1933, which prohibit fraudulent conduct in connection with the offer or sale of securities.

A hearing will be scheduled to determine if the allegations in the Order are true and, if so, whether a cease-and-desist order is appropriate against Johnson.