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U.S. Securities and Exchange Commission

Before the

Securities Exchange Act of 1934 Release No. 50132 / August 2, 2004

Administrative Proceeding File No. 3-11570

Administrative Proceedings Instituted Against Former Registered Representatives Americo Robert Gallo and Oren Fachler

On August 2, 2004 the Commission instituted administrative proceedings against Americo Robert Gallo (Gallo) and Oren Fachler (Fachler), individuals formerly associated with Goldman Lender and Traderz, which operated as unregistered broker-dealers. The Order Instituting Proceedings (Order) alleges that Gallo and Fachler were employed as registered representatives of Montrose Capital Management Ltd and Meridian Equities Co.

On June 20, 2002 and July 15, 2002, respectively, Gallo and Fachler were permanently enjoined by the United States District Court for the Southern District of New York from violating the broker-dealer registration and antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The complaint in the civil injunctive action alleged that both Gallo and Fachler participated in fraudulent offerings through several phony private placements, including Traderz and Niki Taylor. Gallo and Fachler sold stock to retail customers through high-pressure sales tactics and false and misleading representations to fraudulently induce investors to buy the stock.

In October 2001 Fachler was convicted of criminal charges arising out of the same conduct that gave rise to the civil injunctive action. In particular, Fachler was convicted, based on his guilty plea, of securities fraud and conspiracy to commit securities fraud and wire fraud and sentenced to, among other things, 30 months in prison.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Gallo and Fachler an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are appropriate and in the public interest.

See also the Order in this matter



Modified: 0X/XX/2004