UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 51045 / January 14, 2005

Accounting and Auditing Enforcement
Release No. 2175/January 14, 2005

Admin. Proc. File No. 3-11675

SUMMARY

This Order permanently suspends Daniel S. Lezak (Lezak) from appearing or practicing before the Securities and Exchange Commission (Commission). Lezak was previously enjoined from violating the antifraud and reporting provisions of the securities laws.

I. BACKGROUND

The Commission issued its Order Instituting Proceedings (OIP) against Lezak on September 22, 2004, pursuant to 17 C.F.R. § 201.102(e)(3) and temporarily suspended him from appearing or practicing before the Commission. Lezak filed a petition, pursuant to 17 C.F.R. § 201.102(e)(3)(ii), seeking to lift the temporary suspension. The Commission denied his petition and ordered a hearing in its Order Denying Motion to Lift Temporary Suspension and Directing Hearing (Hearing Order) on November 23, 2004. The Division of Enforcement (Division) is seeking to make the temporary suspension permanent. At a prehearing conference on January 14, 2005, Lezak affirmatively stated that he would not defend the proceeding and would accept a default ordering the relief that the Division seeks.

Lezak is in default within the meaning of 17 C.F.R. § 201.155(a)(2) in that he affirmatively declined to defend the proceeding. Accordingly, the undersigned finds that the allegations in the OIP and Hearing Order are true.

II. FINDINGS OF FACT

Lezak has been permanently enjoined from violations of the antifraud and reporting provisions of the Securities Exchange Act of 1934 (Exchange Act). SEC v. Madera Int'l, Inc., Civil Action No. 01-1985 (JR) (D.D.C. Sept. 1, 2004). The wrongdoing that underlies his injunction concerned Madera International, Inc. (Madera), a now-defunct corporation. The common stock of Madera was registered with the Commission pursuant to Section 12(g) of the Exchange Act during all relevant times. Lezak was chairman, chief executive officer, and chief financial officer of Madera from early 1994 through mid-1996. During 1994, 1995, and 1996, Lezak knowingly signed and caused to be filed with the Commission falsified financial statements, which, among other things, misrepresented ownership interests in, and values of, various timberland properties.

III. CONCLUSIONS OF LAW

Lezak has been permanently enjoined "by reason of his . . . misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder" within the meaning of 17 C.F.R. § 201.102(e)(3). He has affirmatively stated that he will not defend this proceeding. See 17 C.F.R. §§ 201.102(e)(3)(iv), .155(a)(2).

IV. SANCTION

The Division requests that Lezak be permanently suspended from appearing or practicing before the Commission.¹ This sanction is consistent with 17 C.F.R. § 201.102(e)(3), and accords with Commission precedent and the sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979).

V. ORDER

IT IS ORDERED that DANIEL S. LEZAK IS PERMANENTLY SUSPENDED from appearing or practicing before the Commission.

Endnotes

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¹ "Practicing before the Commission" includes "transacting any business with the Commission." 17 C.F.R. § 201.102(f).

http://www.sec.gov/litigation/admin/34-51045.htm