Securities Exchange Act of 1934
Release No. 51307 / March 3, 2005

Accounting and Auditing Enforcement
Release No. 2196 / March 3, 2005

Admin. Proc. File No. 3-11840


In the Matter of

THOMAS C. TRAUGER, CPA,

Respondent.



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ORDER OF FORTHWITH SUSPENSION PURSUANT TO RULE 102(e) OF THE COMMISSION'S RULES OF PRACTICE

I.

The Securities and Exchange Commission deems it appropriate to issue an order of forthwith suspension against Thomas C. Trauger ("Trauger") pursuant to Rule 102(e)(2) of the Commission=s Rules of Practice [17 C.F.R. ' 200.102(e)(2)].1

II.

The Commission finds that:

1. Trauger is a certified public accountant licensed in the State of California. Trauger was a partner in the accounting firm Ernst & Young and was the audit partner responsible for the firm's audit of the financial statements of NextCard, Inc. ("NextCard"), a public company, for the year ended December 31, 2000 and quarterly reviews of NextCard's interim financial statements during 2001.

2. On October 29, 2004, Trauger entered a plea of guilty in a pending criminal case, admitting that, on or about April 30, 2003, he appeared before the Commission pursuant to subpoena and, while under oath, withheld information about the alteration and deletion of Ernst & Young working papers for the audit of NextCard's financial statements for the year ended December 31, 2000 and working papers for quarterly reviews in 2001. Trauger admitted that he withheld this information with the intent to impede, obstruct and influence the Commission's investigation.

3. On February 1, 2005, a judgment of conviction was entered against Trauger in U.S. v. Thomas C. Trauger, Case No. CR 03-308 ALL in the United States District Court for the Northern District of California, finding him guilty of falsification of records in a federal investigation in violation of 18 U.S.C. 1519, a felony. The Court sentenced Trauger to 12 months in federal prison and ordered him to pay a $5,000 fine.

III.

In view of the foregoing, the Commission finds that Trauger has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission=s Rules of Practice.

Accordingly, IT IS ORDERED, that Thomas C. Trauger is forthwith suspended from appearing or practicing before the Commission.

By the Commission.

Jonathan G. Katz
Secretary


Endnotes