UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

INVESTMENT ADVISERS ACT OF 1940
Release No. 2072 / October 29, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10698

In the Matter of CRAIG P. SCANLON, Respondent.

: : : : : : :

ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS

I.

On February 13, 2002, the Securities and Exchange Commission ("Commission") issued an Order Instituting Public Administrative Proceedings pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Respondent Craig P. Scanlon ("Scanlon").

II.

Respondent Scanlon has submitted an Offer of Settlement ("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 to which the Commission is a party, prior to a hearing pursuant to the Commission's Rules of Procedure, 17 C.F.R. § 201.1 et seq., and without admitting or denying the findings, except the jurisdiction of the Commission over him and over the matters set forth herein, and the facts in Section III, paragraphs A and C, which he admits, Respondent Scanlon consents to the entry of this Order Making Findings and Imposing Remedial Sanctions ("Order").

III.

On the basis of Respondent Scanlon's Offer and this Order, the Commission finds that:

A. At all relevant times, Scanlon was associated as an officer and director of Scanlon & Associates, Inc., an investment adviser that was not registered with the Commission or the State of Florida.

B. On August 3, 2001, the Commission filed an action seeking, among other things, a Final Default Judgment of Permanent Injunction against Scanlon and Scanlon & Associates, Inc. in Securities and Exchange Commission v. Craig P. Scanlon and Scanlon & Associates, Inc., No. 8:01-CV-1446-T-24TGW (M.D. Fla.). In pertinent part, the Commission alleged in its complaint that Scanlon fraudulently, knowingly, willfully or recklessly misappropriated clients' investment funds to pay his personal expenses by inducing them to sell their securities holdings at certain broker-dealers and to transfer their sales proceeds to him for reinvestment and management through Scanlon & Associates, Inc.

C. On October 15, 2001, a Final Default Judgment of Permanent Injunction and Other Relief as to All Defendants was entered against Scanlon and Scanlon & Associates, Inc. enjoining them from future violations of Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and Sections 206(1) and 206(2) of the Advisers Act.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of settlement submitted by Respondent Scanlon. Accordingly, it is

ORDERED that Scanlon be, and hereby is, barred from association with any investment adviser.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary

Respectfully submitted,

________________________
Kerry A. Zinn
Senior Trial Counsel
DIVISION OF ENFORCEMENT
SECURITIES AND EXCHANGE COMMISSION
1401 Brickell Avenue, Suite 200
Miami, Florida 33131
Phone: (305) 982-6379
Fax: (305) 536-7465

http://www.sec.gov/litigation/admin/ia-2072.htm