UNITED STATES OF AMERICA
In the Matter of
|ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Scott Schoenbauer ("Respondent Schoenbauer" or "Schoenbauer").
In anticipation of the institution of these proceedings, Respondent Schoenbauer has submitted an Offer of Settlement ("Offer"), which Offer 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 contained herein, except as to the jurisdiction of the Commission over Respondent Schoenbauer and over the subject matter of these proceedings, and except as to paragraphs III.A and III.D, below, which are admitted, Respondent Schoenbauer consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order").
Accordingly, IT IS ORDERED that proceedings pursuant to Section 15(b) of the Exchange Act be, and hereby are, instituted.
On the basis of this Order and Respondent Schoenbauer's Offer, the Commission finds that:
A. At all relevant times, Respondent Schoenbauer received transaction-based compensation in the form of commissions in connection with the unregistered offer and sale of the securities of Link Express Delivery Solutions, Inc. ("Link"). During the relevant period, Respondent Schoenbauer was associated as a registered representative with three different registered broker-dealers.
B. From December 1997 to June 1999, Schoenbauer sold the unregistered securities of Link, earning commissions of $80,000. Schoenbauer sold the Link securities without the knowledge or approval of the broker-dealers with which he was associated.
C. On December 12, 2001, the Commission filed a complaint in the United States District Court for the Southern District of Florida captioned S.E.C. v. Paul R. Johnson, et al., Case No. 01-7874-HURLEY/LYNCH (S.D. Fla.), alleging, among other things, that Schoenbauer violated the registration and broker-dealer registration provisions of the federal securities laws by offering and selling the unregistered securities of Link and by acting as an unregistered broker-dealer in connection with those sales.
D. On April 1, 2002, a default judgment of permanent injunction and other relief was entered against Respondent Schoenbauer. The final judgment permanently enjoined Schoenbauer from violating Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act") and Section 15(a) of the Exchange Act. Schoenbauer consented to the entry of the Final Judgment without admitting or denying the allegations contained in the Commission's Complaint.
In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Schoenbauer, and accordingly,
IT IS ORDERED that Respondent Schoenbauer be, and hereby is, barred from association with any registered broker or dealer.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
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