Rel. No. 41913 / September 24, 1999

Admin. Proc. File No. 3-8833

In the Matter of : ORDER
_________________________ :

The Division of Enforcement ("Division") appeals from the decision of an administrative law judge dismissing proceedings against Warren G. Trepp, the former head high-yield bond trader at Drexel Burnham Lambert, Inc. ("Drexel"). Although the law judge found that Trepp violated the law, she dismissed this matter because she concluded that the only remedy available to the Commission, a cease-and-desist order, could not be imposed because the Division had not shown that Trepp was reasonably likely to violate the securities laws in the future. Trepp has also appealed, asking that the Commission vacate the findings of violation made by the law judge and dismiss this matter.

The law judge, in large part, based her holding that Trepp was not reasonably likely to violate the securities laws in the future on the age of this case. The conduct at issue is alleged by the Division to have occurred in 1986, and this case was not instituted until nine years later, in September 1995. The law judge noted that Trepp had not violated the law since 1986, and indeed had not even been in the securities industry since 1992.

We have granted the Division's and Trepp's petitions for review, and have determined that, given these facts, no remedial purpose will be served by issuing a cease-and-desist order against Trepp. We intimate no view on the merits, nor do we address whether the standard employed by the law judge in denying the Division's request for a cease-and-desist order was the proper one.

Accordingly, IT IS ORDERED that this proceeding be, and it hereby is, dismissed.

By the Commission.

Jonathan G. Katz