UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 39848 / April 10, 1998 ADMINISTRATIVE PROCEEDING File No. 3-9576 ______________________________ : In the Matter of :ORDER INSTITUTING PROCEEDINGS, :MAKING FINDINGS, AND IMPOSING JAMIE CHARLES SPANGLER :REMEDIAL SANCTIONS ______________________________: I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and they hereby are, instituted against Jamie Charles Spangler ("Spangler"), pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act"). II. In anticipation of the institution of these administrative proceedings, Spangler has submitted an Offer of Settlement of Jamie Charles Spangler ("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 in which the Commission is a party, and without admitting or denying the findings set forth herein, except as to the entry of the injunction set forth in paragraph III.B., which is admitted, Spangler admits the jurisdiction of the Commission over him and over the subject matter of this administrative proceeding and consents to the entry of this Order Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order") and to the entry of the findings and imposition of the remedial sanctions set forth below. Accordingly, IT IS HEREBY ORDERED that an administrative proceeding be, and hereby is, instituted against Spangler pursuant to Sections 15(b)(6) and 19(h) of the Exchange Act. III. On the basis of this Order and Spangler's Offer, the Commission finds that: A.From at least 1990 through 1992, Spangler was employed as a registered representative associated with the following broker- dealers registered with the Commission: Palm Beach Financial, Inc., Network 1 Financial Securities, Inc., and U.S. Securities Corp. of Washington D.C.; and B.Spangler was permanently enjoined on March 17, 1998 by the United States District Court for the Western District of New York in an action captioned Securities and Exchange Commission v. Jamie Charles Spangler and Robert Albert Merrifield, 95 Civ. 814- A (W.D.N.Y.) ("Injunctive Action"), 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; C.The Commission's Complaint in the Injunctive Action alleged, inter alia, that: 1.From at least February 1991 through June 1992, Spangler solicited investments in two companies: (i) First Legal and Financial Services Ltd. ("First Legal"); and (ii) Fedelta gli Immobili la Compagniad' Investimento, Ltd. ("Fedelta"). In soliciting those investments, Spangler, among other things, falsely represented to investors that investments in First Legal were fully backed by zero-coupon bonds; that funds invested would be used to operate a credit information business, which was false because investor funds were diverted to Spangler's personal use; and that funds invested in Fedelta would be used to purchase commercial rental property, which was false because investor funds were diverted to Spangler's personal use. 2.As a result, investors to whom Spangler offered and sold First Legal and Fedelta securities lost approximately $280,000 in funds they invested. IV. Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Spangler's Offer, and accordingly, IT IS HEREBY ORDERED that, effective immediately, Spangler be, and hereby is, barred from association with any broker, dealer, investment adviser, investment company, or municipal securities dealer. By the Commission. Jonathan G. Katz Secretary - - SERVICE LIST Rule 141 of the Commission's Rules of Practice provides that the Secretary, or another duly authorized officer of the Commission, shall serve a copy of the Order Making Findings And Imposing Remedial Sanctions on each person named as a party in the Order and their legal agent. The attached Order Making Findings And Imposing Remedial Sanctions has been sent to the following parties and other persons entitled to notice: Hon. Brenda P. Murray Chief Administrative Law Judge Securities and Exchange Commission 450 5th Street, N.W. Mail Stop 11-6 Washington, D.C. 20549 Securities and Exchange Commission Division of Enforcement 450 5th Street, N.W. Mail Stop 4-8B Washington, D.C. 20549 Attn: Alma M. Angotti Senior Counsel Branch of Regional Office Assistance Carmen J. Lawrence Regional Director Securities and Exchange Commission Northeast Regional Office Seven World Trade Center 13th Floor New York, New York 10048 Attn: Brian H. Fortune Staff Attorney Branch of Enforcement No. 7 Peter A. Vinolus, Esq. 609 Ridge Road Lackawanna, New York 14218 Attorney for Defendant Jamie Charles Spangler Jamie Charles Spangler c/o Peter A. Vinolus, Esq. 609 Ridge Road Lackawanna, New York 14218 - -