UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 42066 / October 28, 1999
File No. 3-10086
: ORDER INSTITUTING PROCEEDINGS
In the Matter of : PURSUANT TO SECTIONS 15(b) AND 19(h)
: OF THE SECURITIES EXCHANGE ACT OF
Vincent J. Iovine : 1934, MAKING FINDINGS AND IMPOSING
________________________: REMEDIAL SANCTIONS
The Commission deems it appropriate in the public interest and for the
protection of investors that administrative proceedings be instituted pursuant
to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934
("Exchange Act") with respect to Vincent J. Iovine ("Iovine").
In anticipation of these proceedings, Iovine 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 contained herein, except that Iovine
admits the jurisdiction of the Commission over him and the subject matter of
this proceeding and the matters described in paragraphs III.A, D, E., F. and G
of this Order, Iovine has consented to the findings and sanctions set forth
Accordingly, IT IS ORDERED that the proceedings pursuant to Sections 15(b)
and 19(h) of the Exchange Act be, and they hereby are, instituted.
On the basis of this Order for Proceedings and the Offer submitted by the
Respondent, the Commission finds that:
A. Iovine was a registered representative and the head trader at Northeast
Securities, Inc. ("Northeast"), a registered broker-dealer, from May
1992 until March 14, 1997. He was registered with various broker-dealers from
June 1984 until June 1998.
B. In or about August 1996, the common stock of American Image Motor Co. Inc.
("American Image") became quoted on the National Association of
Securities Dealers' OTC Bulletin Board. American Image's common stock has been
quoted on the OTC Bulletin Board from August 1996 through at least March 14,
C. During the time period relevant to this proceeding, the common stock of
American Image was not registered or approved for registration upon notice of
issuance on a national securities exchange, nor were such securities authorized,
or approved for authorization upon notice of issuance for quotation on an
automated quotation system sponsored by a registered securities association
which was established and in operation before January 1, 1990, nor were such
securities issued by a registered investment company. During a portion of the
time period relevant to this proceeding the price of American Image common stock
was less than five dollars a share. At no time relevant to this proceeding did
American Image have net tangible assets in excess of $2,000,000 nor average
revenue of $6,000,000 for a three year period.
D. On March 13, 1997, the Commission filed a complaint
("Complaint") to initiate a civil injunctive action, SEC v. Global
Financial Traders, Inc., et al. (Docket No. 97 Civ. 1753 DC), in the United
States District Court for the Southern District of New York against Iovine,
among others, alleging that Iovine violated Section 10(b) of the Securities
Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 10b-6
promulgated thereunder, and Rule 101 of Regulation M.
E. The Complaint alleges Iovine participated in the distribution of American
Image stock by purchasing and selling American Image stock knowing he could
resell it to certain Northeast clients as set forth therein without disclosing
this arrangement to anyone. It is also alleged that, pursuant to an arrangement
with the same Northeast clients, Iovine entered bids for American Image stock in
a manner designed to control the flow of such clients' stock into the market.
F. The Complaint further alleges Iovine bid for and purchased shares of
American Image stock and resold those shares to certain Northeast clients set
forth therein at a time when such clients were engaged in a distribution of
American Image stock.
G. On October 25, 1999, the United States District Court for the Southern
District of New York issued an order of permanent injunction against Iovine
enjoining him from further violations of Section 10(b) of the Exchange Act and
Rule 10b-5 promulgated thereunder and Rule 101 of Regulation M and requiring him
to pay $69,565.08 in disgorgement and $11,129.63 in prejudgment interest
thereon. Payment of disgorgement and prejudgment interest was waived, based upon
Iovine's demonstrated inability to pay.
In view of the foregoing, it is in the public interest to impose the
sanctions specified in the Offer submitted by Iovine. Accordingly, IT IS ORDERED
The Respondent, Vincent J. Iovine be and hereby is:
A. Barred from participating in any offering of any penny stock; and
B. Barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz