UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 50504 / October 8, 2004
Admin. Proc. File No. 3-11700
IN THE MATTER OF JOHN N. SALERNO
On October 7, 2004, the United States Securities and Exchange Commission (Commission) entered an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Order) against John N. Salerno (Salerno). In the Order, the Division of Enforcement alleges that Salerno pled guilty April 21, 2004 to one count of filing a false broker-dealer registration statement with the Commission before the United States District Court for the Middle District of Florida arising out of his association with The Hamilton Shea Group Inc. (Hamilton Shea), a broker-dealer registered with the Commission.
The Division of Enforcement alleges that the count of the criminal information to which Salerno pled guilty alleged that he willfully violated the rules and regulations promulgated by the Commission and omitted to state a material fact in a registration statement required to be filed with the Commission. The count of the criminal information alleged that, on or about August 1, 1997 and on or about December 1, 1998, while a registered principal at Hamilton Shea, Salerno and others filed false broker-dealer registration forms with the Commission which failed to state the identity of a co-owner of Hamilton Shea who exercised control over the firm. The Division of Enforcement also alleges that while at Hamilton Shea, Salerno participated in a penny stock offering.
A hearing will be scheduled before an Administrative Law Judge to determine whether the allegations contained in the Order are true, to provide Salerno an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are appropriate and in the public interest. The Commission directed that the Administrative Law Judge issue an initial decision no later than 210 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.
See also the Order in this matter