Frank J. Zangara

SECURITIES EXCHANGE ACT OF 1934
Release No. 49805 / June 3, 2004

Admin. Proc. File No. 3-11508

I.

The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest that a public administrative proceeding be, and hereby is, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Frank J. Zangara ("Zangara").

II.

In anticipation of the institution of these administrative proceedings, Zangara has submitted an Offer of Settlement (the "Offer") to the Commission 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 herein, except that Zangara admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, and the entry of the Final Judgment of Permanent Injunction and Other Relief by Consent as to Frank J. Zangara as set forth in Section III.D, Zangara consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (the "Order"), as set forth below.

III.

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

A. At the time of the alleged misconduct, Zangara was associated with a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act.

B. On January 27, 1999, the Commission filed a Complaint in the United States District Court for the Eastern District of New York, in an action captioned Securities and Exchange Commission v. Larry F. Smath, Gregory R. Salvage, Joseph T. Falcone, Peter L. Cohen, Seth J. Glaser, and Frank J. Zangara, Civil Action No. CV-99-523 (TCP), alleging that Zangara violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

C. In the civil injunctive action described in Paragraph III.B above, the Commission's Complaint alleged, inter alia, that Zangara engaged in insider trading involving nonpublic advance copies of the "Inside Wall Street" ("IWS") column of Business Week magazine. Specifically, the Commission alleged that Zangara and others paid another defendant in exchange for communicating the contents of the IWS columns to them before the columns were made public, and that Zangara traded securities while in possession of the nonpublic information obtained from the IWS columns. The Commission's Complaint also alleged that Zangara recommended securities mentioned in the IWS columns to his brokerage customers, while in possession of the nonpublic contents of the IWS columns.

D. A Final Judgment of Permanent Injunction by Consent as to Frank J. Zangara ("Final Judgment") was entered in the United States District Court for the Eastern District of New York on March 26, 2004. The Final Judgment permanently restrains and enjoins Zangara from, directly or indirectly, violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction specified in Zangara's Offer.

Accordingly, it is hereby ORDERED, pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Frank J. Zangara be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.

Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

By the Commission.