SECURITIES ACT OF 1933
Release No. 8179 / January 23, 2003
SECURITIES EXCHANGE ACT OF 1934
Release No. 47238 / January 23, 2003
ADMINISTRATIVE PROCEEDING
File No. 3-9143
In the Matter of STEVEN W. BINGAMAN Respondent.
|
: : : : : : : : : : |
ORDER MAKING FINDINGS AND IMPOSING A CEASE-AND- DESIST ORDER PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 AND SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934 AS TO STEVEN W. BINGAMAN |
I.
In connection with a public administrative proceeding instituted against him on October 10, 1996, pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and 21C of the Securities Exchange Act of 1934 ("Exchange Act"), Steven W. Bingaman ("Bingaman" or "Respondent") has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, Respondent consents to the entry of this Order Making Findings And Imposing A Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 ("Order"), as set forth below.
II.
On the basis of this Order and Respondent's Offer, the Commission finds1 that:
Respondent
1. Bingaman, age 45, maintains a residence in Bedford, New York, and according to NASD records was formerly a registered representative from April 1987 through July 1988.
Other Relevant Individual and Entity
2. Ira James Blackey ("Blackey"), age 52, maintains a residence in Buffalo, New York, and was formerly a registered representative from February 1986 through July 1996. Blackey pled guilty to conspiracy to commit wire fraud and commercial bribery which encompassed, among other things, the same conduct giving rise to this public administrative proceeding. Blackey has not yet been sentenced in this matter.
3. Integrated Healthcare Systems, Inc. ("IGHS") was located in Reston, Virginia. IGHS's Form SB-2, filed with the Commission on January 31, 1996, states that the company developed and marketed software for the healthcare industry. Shares of IGHS's common stock were quoted on the Over-the-Counter Bulletin Board ("OTCBB") under the symbol IGHS. On June 14, 1999, IGHS merged with H Quotient, Inc., whose common stock is currently quoted on the OTCBB under the symbol HQNT.
Background
4. During the period from at least August 1996 through September 1996, Bingaman and Blackey offered to pay, and did pay, undisclosed compensation to an individual who represented to Bingaman and Blackey that he was a registered representative who would, in exchange for such compensation, purchase the common stock of IGHS for the accounts of his customers. Bingaman and Blackey arranged for this individual to be paid one share of stock for every three shares of stock that he said he had caused a customer to purchase. On or about September 5, 1996, Bingaman and Blackey arranged for the transfer of 1,000 shares of IGHS to a broker-dealer as undisclosed compensation for a previous purchase of 3,000 shares of IGHS for $5.50 per share. Accordingly, Bingaman and Blackey 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.
III.
In view of the foregoing, the Commission deems it appropriate to issue the Cease-and-Desist Order as specified in Respondent's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
That pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, Respondent Steven W. Bingaman 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.
By the Commission.
Jonathan G. Katz
Secretary
Footnotes
1 The findings herein are made pursuant to Respondent's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.