United States of America
Before the
Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 46158 / July 2, 2002

Administrative Proceeding
File No. 3-10821

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"), against David Rubinov ("Rubinov").

In anticipation of the institution of these proceedings, Rubinov has submitted an Offer of Settlement to the Commission which the Commission has determined to accept. Solely for the purposes 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 contained herein, except as to those facts set forth in paragraphs II.A., B. and D. and the Commission's jurisdiction over him and over the subject matter of this proceeding, which are admitted, Rubinov consents to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below.

Accordingly, IT IS ORDERED that proceedings pursuant to Section 15(b) of the Exchange Act against Rubinov be, and hereby are, instituted.

II.

On the basis of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions and the Offer of Settlement submitted by Rubinov, the Commission finds that:

A. During the period August 1996 through August 1999, Rubinov was a registered representative associated with various broker-dealers registered with the Commission, including, from April 1997 to November 1997, W.J. Nolan & Company, Inc. ("Nolan").

B. On August 2, 1999, the Commission filed a Complaint in the United States District Court for the Northern District of Illinois against Rubinov and others captioned SEC v. Kfir Barzilay, et al., No. 99 C 5023.

C. The Commission's Complaint alleges that from about April through November of 1997, Rubinov was associated with the Park Avenue office of Nolan. The Complaint alleges that, during this period, among other things, Rubinov engaged in fraudulent sales practices in the accounts of at least six customers. The Complaint alleges that Rubinov's activities included: (1) churning at least five accounts; (2) trading one or more times without authorization in at least four accounts; and (3) making unsuitable trades in at least four accounts. The Complaint also alleges that in the accounts that Rubinov churned, the annualized turnover ratios ranged from approximately 12 to 14, and the annualized break even ratios ranged from approximately 26% to 158%. The Complaint further alleges that from these fraudulent transactions, Rubinov earned over $24,000 in commissions.

D. On June 24, 2002, in SEC v. Barzilay, the Honorable Ronald Guzman entered an Order of Permanent Injunction And Other Relief Against Defendant David Rubinov enjoining Rubinov from violating Sections 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Exchange Act and Rule 17a-3 promulgated thereunder. Rubinov, without admitting or denying the allegations in the Complaint, consented to the entry of the Order of Permanent Injunction.

III.

In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of Settlement of David Rubinov.

Accordingly, IT IS ORDERED that Respondent David Rubinov is barred from association with any broker or dealer, with the right to reapply for association after two years to the appropriate self-regulatory organization, or if there is none, to the Commission.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-46158.htm