UNITED STATES OF AMERICA
Securities Exchange Act of 1934
Respondent Steven G. Barkus ("Barkus") has submitted an Offer of Settlement for the purpose of disposing of the issues raised by this proceeding which the Securities and Exchange Commission ("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, except as to the jurisdiction of the Commission over him and over the subject matter of these proceedings and as to the entry of the injunction set forth in paragraph II.B., which are admitted, Barkus consents to the entry of this Order Making Findings and Imposing Remedial Sanctions ("Order").
On the basis of this Order, the Order Instituting Proceedings,1 and the Respondent's Offer of Settlement, the Commission finds that:
A. Barkus was a registered representative of Marsh, Block & Co., Inc. from on or about September 1991, to on or about November 1994. From at least September 1991 to November 1994, Marsh, Block & Co., Inc. was a registered broker-dealer pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").
B. On June 10, 1998, in SEC v. American Telecom Interconnect, Inc., et al., CV 96-2952 (DDP) (C.D. Cal.) ("SEC v. ATI"), the United States District Court for the Central District of California entered a final consent judgment against Barkus, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Exchange Act and Rule 10b-5.
C. The Commission's Complaint in the Injunctive Action alleged, inter alia, that Barkus was an officer, director and 49% shareholder of defendants ATI, Linq Up America (Los Angeles), Inc. and America's Choice Communications ("ACC"). The complaint further alleged that from June 1992 to February 1994, Barkus, among others, offered and sold unregistered investments in sale-and-leaseback contracts for telephone equipment through fraudulent representations and omissions of material fact, and that ATI made loans to Linq Up and ACC from the proceeds of this fraud.
In view of the foregoing, the Commission deems it appropriate in the public interest, for the protection of investors, to impose the sanction that is set forth in the Offer of Settlement submitted by Barkus.
Accordingly, IT IS HEREBY ORDERED that:
Effective immediately, Barkus be, and hereby is, barred from association with any broker or dealer, with a right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
By the Commission.
Jonathan G. Katz
1 On September 3, 1999, the Commission issued an Order Insituting Proceedings against Barkus.