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U.S. Securities and Exchange Commission

United States of America
Before the
Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 45409 / February 6, 2002

Administrative Proceeding
File No. 3-10603

In the Matter of



The Securities and Exchange Commission ("Commission") instituted public administrative proceedings pursuant Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") in this matter on September 28, 2001. Respondent Douglas Diggins ("Diggins") 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 in which the Commission is a party, and without admitting or denying the findings, except the jurisdiction of the Commission with respect to him and the matters set forth herein, and the findings contained in paragraphs II. A., B., and H. below, which he admits, Diggins consents to the entry of this Order Making Findings and Imposing Remedial Sanctions Against Respondent Douglas Diggins ("Order").


On the basis of this Order and Respondent's Offer, the Commission makes the following findings:

  1. Cohig & Associates Inc. ("Cohig") is a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act (File No. 8-33481) since March 1985, with its principal place of business in Denver, Colorado. At relevant times, it maintained a branch office in Solana Beach, California.
  2. From September 1992 through approximately February 1993, Diggins was associated as a registered representative of Cohig.
  3. At all times relevant to this proceeding, Teletek, Inc. ("Teletek") was a reporting company with its principal place of business in Las Vegas, Nevada. At all times relevant herein, Teletek common stock traded in the over-the-counter markets, and during certain periods was listed on NASDAQ.
  4. On February 7, 1997, Diggins pled guilty to one count of an information charging him with conspiracy to commit securities fraud.
  5. In his plea agreement, Diggins admitted that, while associated with Cohig's office in Solana Beach, California, he conspired with others, including Michael Swan ("Swan"), then the president of Teletek, to receive undisclosed payments in return for selling Teletek stock to investors.
  6. In his plea agreement, Diggins further admitted that he failed to disclose this extraordinary compensation to investors.
  7. In his plea agreement, Diggins further admitted that the customers who bought Teletek stock from various brokers at Cohig who were bribed in the course of the conspiracy lost approximately $130,000 on their purchases of Teletek stock.
  8. On March 8, 2000, based upon his guilty plea, Diggins was convicted of one count of conspiracy to commit securities fraud and wire fraud. United States v. Douglas Diggins [No. CR-S-96-271-PMP (D. Nev.)].


In view of the foregoing, it is in the public interest and for the protection of investors to impose the sanctions specified in the Offer.

Accordingly, IT IS HEREBY ORDERED THAT Diggins be, and hereby is, barred from association with any broker or dealer.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz



Modified: 02/07/2002