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U.S. Securities and Exchange Commission

Before the

Release No. 50156 / August 5, 2004

File No. 3-11507

In the Matter of

Richard Wolff, Alex Grinshpon, Alex Solon, and Jeffery Stone,




In connection with previously instituted public administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"),1 Respondent Jeffery Stone ("Stone" or "Respondent") has submitted an Offer of Settlement ("Offer") 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 to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section II.C. and II.E., below, which are admitted, Stone consents to the entry of this Order Making Findings and Imposing Remedial Sanctions Against Jeffery Stone ("Order"), as set forth below.


On the basis of this Order and Respondent's Offer, the Commission finds that:

A. At all relevant times, International Investment Group, Ltd. ("IIGR") was a Delaware corporation whose principal offices were in New York, New York. The common stock of IIGR was publicly traded on the over-the-counter market. . B. At all relevant times, Stone was a registered representative of T.L. Group, Inc., a former broker-dealer that was registered with the Commission during the relevant time period.

C. On June 26, 2003, Stone was permanently enjoined by the United States District Court for the Southern District of New York in SEC v. Ruge, et al., 97 Civ. 9306 (S.D.N.Y.) (DAB), from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

D. The Commission's complaint in the above-referenced action alleged, among other things, that:

    1. From June 1995 through February 1996, the Defendants, including Stone, engaged in a fraudulent scheme to manipulate the public trading market for securities issued by IIGR through the payment of undisclosed bribes to various registered representatives and other individuals who sold IIGR stock to the public without disclosing payment of the bribes. The chairman of IIGR provided blocks of IIGR shares to promoters at a substantial discount from the prevailing market price so that the promoters could sell those shares to brokers who would then sell the IIGR shares to retail investors at inflated prices. The promoters paid bribes to the brokers to induce them to sell the IIGR shares. Stone paid bribes to brokers to induce them to sell IIGR shares, and also received bribes for selling IIGR shares himself. The promoters kept a portion of the proceeds from the sale of the shares for themselves and remitted the balance to IIGR's chairman. The Defendants collectively received approximately $500,000 in illegal profits from the fraudulent scheme.

    2. Stone violated Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in connection with the offer and sale of IIGR securities.

E. On September 21, 1999, Stone pleaded guilty to one count of conspiracy to commit wire fraud and commercial bribery in violation of 18 U.S.C. 371, and two counts of wire fraud in violation of 18 U.S.C. 2, 1343 and 1346. United States v. Jeffrey Stone, 97 Cr. 1034 (S.D.N.Y.) (JSM).

F. The indictment underlying Stone's guilty plea alleged, among other things, that at various times between February 1995 and September 1996, Stone accepted secret payments of cash from one of the defendants as an inducement for causing his customers to buy IIGR common stock on the open market to increase and maintain the share price of IIGR common stock at an artificially inflated price.

G. On the basis of his guilty plea, Stone was sentenced to thirty six months of imprisonment, followed by three years of supervised release, and ordered to pay a fine in the amount of $50,000.


In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Stone's Offer.

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Stone be, and hereby is barred from association with any broker or dealer.

Any reapplication for association by Respondent Stone 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.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz




Modified: 08/06/2004