UNITED STATES OF AMERICA
In the Matter of
ORDER INSTITUTING A PROCEEDING
MAKING FINDINGS AND IMPOSING
REMEDIAL SANCTIONS PURSUANT TO
SECTION 15(b)(6) OF THE SECURITIES
EXCHANGE ACT OF 1934
The Commission deems it appropriate and in the public interest to institute a public administrative proceeding pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78o(b)(6)] to determine what action, if any, is necessary in light of the entry of a permanent injunction against Peter G. Mintz ("Mintz") on May 22, 2000, which occurred in the United States District Court for the Southern District of New York.
In anticipation of the institution of these proceedings, Mintz has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding, and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings or conclusions contained herein, except for those contained in Section III. 1., 2., and 3., which are admitted, Mintz consents to the issuance of this Order Instituting A Proceeding, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (the "Order"), the entry of the findings contained herein, and the imposition of the sanction set forth below.
ACCORDINGLY, IT IS ORDERED that this proceeding pursuant to Section 15(b)(6) of the Exchange Act be and hereby is instituted.
On the basis of this Order and Mintz's Offer, the Commission finds that:
1. From March 1989 through June 1994, Mintz was associated with Josephthal Lyon & Ross, Inc., a broker-dealer registered with the Commission pursuant to Section 15 of the Exchange Act;
2. Mintz is permanently enjoined by judgment of the United States District Court for the Southern District of New York, in the action styled Securities and Exchange Commission v. Steven H. Schiffer, Joann R. Schulz, Gary S. Kramer, Jonathan Solow, Peter G. Mintz, Estate of Gary S. Kramer, and Gary S. Kramer Trust, 97 Civ. 5853 (RO) (S.D.N.Y., judgment entered May 22, 2000), from violating Sections 9(a)(2) and 10(b) of the Exchange Act and Rule 10b-5 thereunder; and
3. The Commission's complaint in SEC v. Schiffer et al. alleges, with respect to Mintz, as follows: From May 1992 through August 1992, Mintz participated in a scheme to manipulate the price of the common stock of Phoenix Laser Systems, Inc. ("Phoenix"), a now-defunct company that was in the business of developing a laser workstation to perform eye surgery. During this period, Mintz was associated with a registered broker-dealer headquartered in New York, New York. As part of the scheme to manipulate the price of Phoenix common stock, which traded on the American Stock Exchange, Mintz, at the direction of Phoenix's CEO and vice president, caused a number of purchases of Phoenix common stock to be executed in nominee accounts. These purchases were executed during the day and often at or near the end of the trading day, in a manner that increased the price of the stock. The end-of-day purchases frequently caused Phoenix's daily closing price to be higher than it would have been in the absence of those purchases.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Mintz and impose the sanctions that are consented to in that Offer.
Accordingly, IT IS HEREBY ORDERED that, effective immediately, that Mintz be, and hereby is, suspended from association with any broker or dealer for a period of twelve (12) months, effective on the second Monday following the entry of this Order.
Mintz shall provide to the Commission, within ten (10) days after the end of the twelve (12) month suspension period described above, an affidavit that he has complied fully with this sanction.
By the Commission.
Jonathan G. Katz
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