SECURITIES EXCHANGE ACT OF 1934
Release No. 50284 / August 27, 2004
INVESTMENT ADVISERS ACT OF 1940
Release No. 2286 / August 27, 2004
ADMINISTRATIVE PROCEEDING
File No. 3-11615
In the Matter of PETER BACANOVIC, Respondent. |
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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS |
I.
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Peter Bacanovic ("Bacanovic" or "Respondent").
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "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 III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
III.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. Bacanovic was a registered representative employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), which is registered with the Commission as a broker-dealer and investment adviser. Bacanovic began working at Merrill Lynch in October 1993 and was suspended indefinitely with pay in June 2002. Merrill Lynch terminated Bacanovic's employment on October 2, 2002. Bacanovic, 42 years old, is a resident of New York, New York.
2. On March 5, 2004 after a jury trial in the United States District Court for the Southern District of New York, Bacanovic was found guilty of one count of conspiracy to obstruct justice, make false statements and commit perjury, in violation of Title 18 United States Code Section 371, one count of false statements, in violation of Title 18 United States Code Section 1001, one count of perjury, in violation of Title 18 United States Code Section 1621, and one count of obstruction of an agency proceeding, in violation of Title 18 United States Code Section 1505, in United States v. Martha Stewart and Peter Bacanovic, 03 CR 717 (MGC). On July 16, 2004 Bacanovic was sentenced to five months in federal prison and two years supervised release with a special condition of five months home detention and ordered to pay a $4,000 fine. A judgment of conviction against Bacanovic was entered on July 20, 2004.
3. The felony counts upon which the conviction is based alleged, inter alia, that Bacanovic: (a) entered into a conspiracy to obstruct an investigation by the Commission, make false statements and commit perjury; (b) made materially false statements and omissions in a telephone interview with the Commission staff; (c) made material misstatements in testimony before an officer of the Commission; and (d) obstructed a pending Commission proceeding.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Bacanovic's Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act, that Respondent Bacanovic be, and hereby is, barred from association with any broker, dealer, or investment adviser.
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.
For the Commission, by its Secretary, pursuant to delegated authority.
Secretary