Securities Exchange Act of 1934
Release No. 41940 / September 29, 1999
File No. 3-10047
______________________________ : : ORDER INSTITUTING : ADMINISTRATIVE PROCEEDINGS In the Matter of : PURSUANT TO SECTIONS 15(b) : AND 19(h) OF THE SECURITIES Mario Iacoviello, : EXCHANGE ACT OF 1934, : MAKING FINDINGS, AND IMPOSING Respondent. : REMEDIAL SANCTIONS ______________________________:
The Securities and Exchange Commission ("Commission") deems it appropriate, in the public interest and for the protection of investors that administrative proceedings pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") be, and hereby are, instituted against respondent Mario Iacoviello ("Iacoviello").
In anticipation of the institution of these proceedings, Iacoviello has submitted an Offer of Settlement ("Offer"), which the Commission has determined is in the public interest and for the protection of investors 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 set forth herein, except as to paragraphs III.A. and III.B. below, which Iacoviello admits, and the jurisdiction of the Commission over him and over the matters set forth in this Order Instituting Administrative Proceedings Pursuant To Sections 15(b) And 19(h) Of The Securities Exchange Act Of 1934, Making Findings, And Imposing Remedial Sanctions ("Order"), which Iacoviello also admits, Iacoviello consents to the entry of the findings and the imposition of the sanctions set forth below.
On the basis of this Order and Iacoviello's Offer, the Commission makes the following findings:1
A. Iacoviello, age 42, was associated from February 1993 until March 1994 as a registered representative with the San Diego branch office of La Jolla Securities Corp., a registered broker-dealer pursuant to Section 15(b) of the Exchange Act.
B. On September 10, 1999, Iacoviello was permanently enjoined by the United States District Court for the Southern District of New York in SEC v. Paul J. Montle, et al., 98 Civ. 3446 (MP), from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
C. The Commission's complaint in the above-referenced action alleged in part as follows: In June 1993, one of the defendants made two payments totaling $30,325 to Iacoviello. In return for these payments, Iacoviello and other La Jolla brokers sold shares in RMS Titanic, Inc. ("RMS Titanic") stock to their retail customers. Iacoviello never disclosed to his retail customers that he was receiving compensation in addition to his normal compensation for recommending and selling RMS Titanic stock to them.
In view of the foregoing, the Commission deems it appropriate and in the public interest to accept Iacoviello's Offer and to impose the sanctions which are set forth in his Offer.
Accordingly, it is hereby ordered that, effective immediately, Iacoviello be, and hereby is, barred from association with any broker or dealer, with a right to reapply for association after three years to the appropriate self-regulatory organization, or if there is none, to the Commission.
By the Commission.
Jonathan G. Katz
-- The findings herein are made pursuant to Iacoviello's Offer and are not binding on any other person or entity in this or any other proceeding.