 United
States of America
Before the
Securities and Exchange Commission
Securities
Act of 1933
Release No. 8017 / September 28, 2001
Administrative
Proceeding
File No. 3-10597
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___________________
In
the Matter of
Enrico
Cortesano,
Respondent
___________________
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ORDER
INSTITUTING
PROCEEDINGS PURSUANT TO
SECTION 8A OF THE SECURITIES
ACT OF 1933, MAKING FINDINGS,
AND IMPOSING A CEASE-AND-
DESIST ORDER |
I.
The
Securities and Exchange Commission ("Commission")
deems it appropriate that cease-and-desist proceedings
against Enrico Cortesano ("Respondent")
be instituted pursuant to Section 8A of the Securities
Act of 1933 ("Securities Act").
In
anticipation of the institution of these proceedings,
Respondent has submitted an Offer of Settlement
("Offer") that 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 that Respondent
admits the Commission's jurisdiction over him
and over the subject matter of these proceedings,
Respondent has consented to the entry of this
Order Instituting Public Proceedings Pursuant
to Section 8A of the Securities Act of 1933, Making
Findings, and Imposing a Cease-and-Desist Order
("Order") and to the entry of the cease-and-desist
order set forth below.
II.
On
the basis of this Order and the Offer submitted
by Respondent, the Commission finds that:
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Cortesano,
age 49 and a resident of Hollywood, Florida,
established an Internet website located at
www.europeancontact.com.
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From
late September 2000 through late March 2001,
Respondent engaged in a prime bank scheme
by offering for sale on his Internet website
securities in the form of participation interests
in bank debenture trading programs ("trading
programs") that purportedly lasted for
a time period of one year and one week. Respondent
offered the securities while no registration
statement was filed with the Commission.
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In
furtherance of his solicitations, Respondent
disseminated over his Internet website materially
false and misleading statements and omissions.
Among other things, Respondent misrepresented
that the securities offered existed; that
the returns were guaranteed to be paid on
a daily, weekly, or monthly basis; that the
returns ranged from approximately 60% to 200%
per month, depending on the amount invested;
and that there were no risks associated with
investing in the trading programs.
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Respondent
took no reasonable steps to verify whether
the securities being offered existed or whether
the representations made on his website were
true. Respondent used and published materials
without establishing or investigating their
accuracy or veracity.
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As
a result of the foregoing, Respondent violated
Sections 5(c), 17(a)(1) and 17(a)(3) of the
Securities Act by offering for sale securities
when no registration statement was filed with
the Commission, and using the means or instruments
of transportation or communication in interstate
commerce or by use of the mails, to employ
devices, schemes, or artifices to defraud,
or to engage in transactions, practices and
courses of business which operated or would
operate as a fraud or deceit upon a purchaser
in the offer or sale of a security.
III.
In
view of the foregoing, the Commission finds that
it is appropriate to impose the sanctions specified
in the Offer.
Accordingly,
IT IS HEREBY ORDERED, pursuant to Section 8A of
the Securities Act, that Respondent, Enrico Cortesano,
cease and desist from committing or causing any
violation and any future violation of Sections
5(c), 17(a)(1) and 17(a)(3) of the Securities
Act.
By
the Commission.
Jonathan
G. Katz
Secretary
from:
http://www.sec.gov/litigation/admin/33-8017.htm
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