UNITED STATES OF AMERICA
|In the Matter of
Al Avasso and
|ORDER MAKING FINDINGS,
IMPOSING REMEDIAL SANCTIONS
AND ISSUING A CEASE-AND-
DESIST ORDER AS TO AL AVASSO
In connection with a public administrative proceeding instituted against him pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Exchange Act"), Al Avasso ("Avasso") has submitted an Offer of Settlement ("Offer") to the Securities and Exchange Commission ("Commission"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding 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 as to jurisdiction which is admitted, Avasso consents to the entry of the findings and remedial sanctions set forth below.
On the basis of this Order Making Findings, Imposing Remedial Sanctions, and Issuing a Cease-and-Desist Order As to Al Alvasso ("Order") and the Offer submitted by Avasso, the Commission makes the following findings1:
A. Al Avasso ("Avasso"), at the time of the conduct in question, was 56 years old and a resident of New York.
B. Grayhound Electronics, Inc. is located in Lakewood, New Jersey. It purports to manufacture coin operated amusement games, instant lottery equipment and debit card dispensers. The company's securities are penny stocks and are listed on the Over-the-Counter Bulletin Board under the symbol GRAY.
C. During the period from at least in or about September 1996 through October 1996, Avasso offered to pay, and orchestrated the payment of, undisclosed compensation to person(s) whom he believed to be registered representative(s) or registered principal(s), to induce such registered representatives, registered principals or persons to purchase the common stock of GRAY for the accounts of customers. For example, on or about September 26, 1996, Avasso, directly or indirectly, transferred or caused to be transferred, 15,000 shares of GRAY stock to a broker-dealer which was undisclosed compensation for a previous purchase of 50,000 shares of GRAY at approximately $0.375 per share by the broker-dealer. Accordingly, Avasso willfully violated, and committed and caused violations of, Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions and issue the cease-and-desist order as specified in the Offer of Settlement.
Accordingly, IT IS HEREBY ORDERED that:
1. Respondent Avasso, effective immediately, cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;
2. Respondent Avasso, effective immediately, be and hereby is barred from participation in penny stock offerings; and
3. Respondent Avasso, prior to the close of business on the sixtieth day after the date of the Order, pay disgorgement in the amount of $5,625, plus interest from September 1996 to the date of the Order,2 to the United States Treasury. Such payment shall be: (a) made by United States postal money order, certified check, bank cashier's check or bank money order; (b) made payable to the U.S. Securities and Exchange Commission; (c) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Mail Stop 0-3, 6432 General Green Way, Alexandria, Virginia 22312; and (d) submitted under cover letter which identifies Al Avasso as the Respondent in this proceeding, the file number of this proceeding, 3-9162, and a copy of which cover letter and money order or check shall be sent to Burk Burnett, Staff Attorney, Securities and Exchange Commission, Northeast Regional Office, 7 World Trade Center, 13th Floor, New York, New York 10048.
By the Commission
Jonathan G. Katz
|1||Any findings contained herein are made pursuant to Respondent Avasso's Offer of Settlement and are not binding on any other person or entity named as a respondent in this or any other proceeding.|
|2||The amount of prejudgment interest is to be calculated using the Internal Revenue Service late payment rate.|
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