Securities Exchange Act of 1934
Release No. 49007 / December 29, 2003

Administrative Proceeding
File No. 3-11368

Administrative Proceedings Instituted Against Eric Stuerken

The United States Securities and Exchange Commission announced today that it instituted public administrative proceedings against Eric Stuerken pursuant to Section 15(b) of the Securities Exchange Act of 1934.

In the Order Instituting Administrative Proceedings ("Order"), the Division of Enforcement alleges that on May 23, 2002, Stuerken pleaded guilty to charges of conspiracy to commit securities, mail and wire fraud and a substantive count of securities fraud in a criminal action, United States v. Becker, et al. (SDNY)(01 Cr. 156)(RPP)), brought by the United States Attorney for the Southern District of New York. According to the indictment, the charges against Stuerken arose from his participation in selling penny stocks promoted by Investors Associates, Inc., formerly a registered broker-dealer. In its judgment, the Court found that Stuerken made, and participated with others at Investors Associates in making, materially false or misleading statements to brokerage customers concerning the purchase and sale of certain penny stocks.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Stuerken an opportunity to dispute these allegations and to determine what, if any, remedial sanctions should be imposed against Stuerken. The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of the Order.