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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. 46516 / September 20, 2002

Administrative Proceeding
File No. 3-10865

In the Matter of




The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) on August 15, 2002. On September 16, 2002, the Division of Enforcement (Division) filed a letter stating that the OIP had been served on both Respondents on August 20, 2002. Certified mail return receipts were attached to the Division's letter. The OIP gave Respondents twenty days, or until September 9, 2002, to file their answers. See Rule 220(b) of the Commission's Rules of Practice, 17 C.F.R. § 201.220(b). No answers have been received and the time for filing answers has expired. Accordingly, both Respondents are in default. See Rules 155(a)(2) and 220(f) of the Commission's Rules of Practice, 17 C.F.R. §§ 201.155(a)(2), .220(f).

I find that the following allegations in the OIP are true:

Joseph Orlando (Orlando) was employed as a stockbroker and manager at L.C. Wegard & Co., Inc. (Wegard), a registered broker and dealer, from November 1992 through November 1995. Victor Samaha (Samaha) was employed as a stockbroker, an assistant manager, and a regional vice president at Wegard from November 1991 through November 1995.

Both Respondents have been criminally convicted of conspiracy to commit securities fraud, a felony, and seven counts of securities fraud, also felonies. A judgment of conviction was entered against Orlando on July 17, 2000. United States v. Joseph Orlando, Criminal Case No. 98-414-08 (D.N.J. 1998). Orlando appealed the verdict and the United States Court of Appeals for the Third Circuit affirmed his conviction and sentence. See United States v. Hart, 273 F.3d 363 (3d Cir. 2001). The time for filing a petition for a writ of certiorari in the United States Supreme Court has expired. A judgment of conviction was entered against Samaha on September 25, 2001. United States v. Victor Samaha, Criminal Case No. 98-414-06 (D.N.J. 1998). The time for seeking appellate review of the conviction has expired.

The indictment alleged that Respondents, while employed as stockbrokers and in various supervisory capacities at Wegard, participated in a conspiracy to commit securities fraud, and committed securities fraud, by inducing unsuspecting investors to purchase speculative high-risk securities through the use of fraudulent and deceptive sales practices. The indictment also alleged that the conspiracy existed from in or about November 1991 to in or about November 1995.

Respondents' criminal convictions, which arose out of their conduct as associated persons of Wegard, involved fraud in the purchase or sale of securities, which was also an object of the conspiracy. The facts underlying the convictions included Respondents' concealment of the use of fraudulent sales practices from regulatory authorities.

In view of the foregoing, and pursuant to Section 15(b) of the Securities Exchange Act of 1934, I find it in the public interest and necessary for the protection of investors to order that Respondents be barred from association with any broker or dealer.

Accordingly, IT IS ORDERED THAT Joseph Orlando and Victor Samaha are barred from association with any broker or dealer.

James T. Kelly
Administrative Law Judge



Modified: 09/20/2002