UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES ACT OF 1933 Release No. 7517 / March 23, 1998 SECURITIES EXCHANGE ACT OF 1934 Release No. 39780 / March 23, 1998 ADMINISTRATIVE PROCEEDING File No. 3-9368 _______________________________ : In the Matter of : : PAUL D. BLASETTI, : : ORDER MAKING FINDINGS AND : IMPOSING REMEDIAL SANCTIONS : AND CEASE-AND-DESIST ORDER Respondent.: : _______________________________: I. In these proceedings instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act"), and Sections 15(b), 19(h) and 21C of the Securities Exchange Act of 1934 ("Exchange Act"), Respondent Paul D. Blasetti has submitted an Offer of Settlement ("Offer") which the Securities and Exchange Commission ("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 for jurisdiction which he admits, Blasetti, by his Offer, consents to the findings and the imposition of the sanctions and other relief contained in this Order Making Findings and Imposing Remedial Sanctions and Cease-and-Desist Order ("Order"). II. On the basis of this Order and the Offer submitted by Blasetti, the Commission finds that: A.Blasetti, age 53, is a former registered representative who was associated with a series of brokerage firms since 1968. He has a history of customer complaints, most of which involve allegations of unauthorized trading, suitability and churning. In June 1996, the New York Stock Exchange ("NYSE") imposed a censure and a 15 month bar against him based upon some of these customer complaints. B.As more fully described below, from November 17, 1995 to November 22, 1995, Blasetti willfully violated Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, in that he, either knowingly or with reckless disregard for the facts, directly or indirectly, in connection with the offer, purchase or sale of securities, by use of the means and instruments of transportation or communication in interstate commerce, or the means and instrumentalities of interstate commerce, or the mails, employed devices, schemes or artifices to defraud; obtained money or property by making or otherwise made untrue statements of material fact, or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and engaged in transactions acts, practices, and courses of business which have operated or would operate as a fraud or deceit upon any persons, including purchasers and sellers of such securities. C.In December 1993, Blasetti became associated with a brokerage firm based in Bryn Mawr, Pennsylvania. While at the firm, he serviced numerous customer accounts and was one of its highest producing sales persons. D.In or about November 1994, an investment company registered with the Commission, launched a sales contest offering an all- expenses-paid trip to Cancun, Mexico. According to literature describing the contest, registered representatives who sold $200,000 or more worth of shares of the investment company would qualify for the trip to Cancun. The investment company made a presentation concerning the sales contest to Blasetti and other representatives of the brokerage firm in the summer of 1995. E.The official deadline of the investment company sales contest was November 1, 1995. Before the contest deadline, Blasetti contacted a representative of the investment company and negotiated an extension of the deadline until the end of November. During the extension of time, Blasetti intended to sell the required amount of shares in the investment company to qualify for the Cancun, Mexico trip. F.From November 17, 1995 through November 22, 1995, Blasetti executed 29 transactions for the purchase of shares in the investment company. All of the transactions were executed during a period of four business days. Prior to that time, Blasetti had never executed a single transaction for the purchase of the investment company shares. **FOOTNOTES** [/]:/An Order Instituting Public Proceedings against Blasetti was issued by the Commission on August 19, 1997. G.Of the 29 transactions executed by Blasetti, at least six transactions were never authorized by the customers. At the time that he executed these six transactions, Blasetti knew, or was reckless in not knowing, that the customers did not know about, and had not consented to, the transactions. The six unauthorized transactions totalled over $52,000. In executing some of the unauthorized transactions, Blasetti engaged in certain other reckless or deceptive acts. H.As a result of all of the fraudulent transactions, Blasetti earned commissions. The transactions also helped him qualify for the all-expenses-paid trip to Cancun, Mexico sponsored by the investment company. I.Several of Blasetti's customers eventually contacted the brokerage firm, claiming that they had not authorized the purchase of shares in the investment company for their accounts. Based on these complaints, Blasetti's supervisor subsequently terminated Blasetti. III. On the basis of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions and other relief specified in the Blasetti's Offer of Settlement. Accordingly, IT IS HEREBY ORDERED that: A.Blasetti 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; B.Blasetti be, and hereby is, barred from association with any broker, dealer, municipal securities dealer, investment company or investment adviser, with the right to reapply for association after two years to the appropriate self-regulatory organization, or if there is none, to the Commission; C.Blasetti pay disgorgement in the amount of $3,003.75, together with prejudgment interest in the amount of $524; and a civil penalty in the amount of $5,000; and D.the payments required by paragraph III.C. of this Order shall by made within ten days of the entry of this Order, by: (A) United States postal money order, certified check, bank cashier's check or bank money order; (B) made payable to the Securities and Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and (D) submitted under cover letter that identifies Blasetti as the Respondent in these proceedings, the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Ronald C. Long, District Administrator, Securities and Exchange Commission, Philadelphia District Office, 601 Walnut Street, Suite 1005E., Philadelphia, PA 19106. By the Commission. Jonathan G. Katz Secretary