Release No. 41807 / August 30, 1999

File No. 3-9991


The Securities and Exchange Commission ("Commission") announced that it issued an Order Instituting Public Administrative Proceeding ("Order") against Cery B. Perle ("Perle"), the former president of Waldron & Co., Inc. ("Waldron"), a now defunct broker-dealer formerly registered with the Commission. The Commission's Order alleges that Perle was enjoined by a United States District Court from future violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(c)(1) of the Securities Exchange Act of 1934 and Rules 10b-5 and 15c1-2 thereunder, and that the court also imposed $110,000 in civil penalties against Perle.

In its complaint in the District Court action, the Commission alleged that between November 25, 1997 and March 23, 1998, Perle and Waldron manipulated the stock of the Corona del Mar, California Internet retailer,, artificially raising the price of the security from its IPO price of $9.00 to more than $32.00 a share. According to the complaint, Perle manipulated's stock by controlling the supply for the security and creating artificial demand. In controlling the supply, the complaint alleged, Perle, among other things, engaged in unauthorized transactions, refused customer sell orders and parked stock in customers' accounts. To create artificial demand, the complaint alleged that Perle issued a false and misleading press release, and while Waldron was acting as a market maker, caused the firm to raise the bid for the security without economic justification.

A hearing will be scheduled to take evidence on the staff's allegations and to afford the Respondent an opportunity to present any defense thereto. The purpose of the hearing is to determine whether the allegations are true and whether any remedial action should be ordered by the Commission.