UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES ACT OF 1933 Release No. 7449 / September 10, 1997 SECURITIES EXCHANGE ACT 1934 Release No. 39042 / September 10, 1997 ADMINISTRATIVE PROCEEDING File No. 3-9399 ________________________________________ | IN THE MATTER OF |ORDER INSTITUTING |PUBLIC PROCEEDINGS, JUERGENS OTTO WINKLER |MAKING FINDINGS AND RESPONDENT. |IMPOSING REMEDIAL |SANCTIONS ________________________________________ | I. The Securities and Exchange Commission (Commission) deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Sections 15(b), 19(h) and 21C of the Securities and Exchange Act of 1934 (Exchange Act) and Section 8A of the Securities Act of 1933 (Securities Act) against Juergens Otto Winkler (Winkler). In anticipation of the institution of these administrative proceedings, Winkler 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 in which the Commission is a party, and without admitting or denying the findings, except as to jurisdiction and the facts set forth in Paragraph II.A. below, which he admits, Winkler consents to the entry of this Order, its findings and the imposition of sanctions as set forth below. ACCORDINGLY, IT IS ORDERED THAT proceedings pursuant to Sections 15(b), 19(h) and 21C of the Exchange Act and 8A of the Securities Act be, and they hereby are, instituted. II. On the basis of this Order and the Offer submitted by Winkler, the Commission finds that<(1)>: <(1)> The findings herein are made pursuant to Winkler's Offer and are not binding on any other person or entity named as a respondent in this or any other proceeding. . A.From January 1973 to June 1992, Winkler, age 56, was a registered representative with broker-dealers registered with the Commission pursuant to Section 15(b) of the Exchange Act. B.On or about November 15, 1990 Winkler was a registered representative with a broker-dealer. At that time he wrote a letter on the broker- dealer's letterhead attesting to the finances of an individual and a company which were involved in a fraudulent "Prime Bank" scheme, the "Konex Roll Program," which raised at least $12.5 million from the Chicago Housing Authority (CHA) through the offer and sale of investment contracts. In fact, the Konex Roll Program was nothing more than a scheme to defraud investors and misappropriate funds. In the letter Winkler stated that the company carried brokerage account balances in excess of two million dollars. Winkler has admitted that this representation was false. C.On or about May 22, 1992, Winkler was a registered representative of another broker-dealer. At that time Winkler signed a second letter attesting to the finances of the same individual and company. This letter was addressed to the vice-president of a bank. The letter stated that Winkler had personally handled transactions on behalf of the individual and the company "ranging to the high nine figures." Winkler has admitted that this representation was false. D.Winkler did not actually write the second letter. Instead, he supplied the letterhead of the broker-dealer to the individual involved in the fraudulent scheme. This individual wrote the letter and later asked Winkler to sign it. After reviewing the letter, Winkler signed the letter knowing that it contained misrepresentations regarding the transactions of the company and the individual. E.By executing the letters described above, Winkler knowingly and substantially assisted a Prime Bank scheme which defrauded investors by creating the impression that the sellers of the Prime Bank Notes were successful businessmen. F.As a result of the activity described in paragraphs II.A. through E. above, Winkler willfully aided and abetted and caused violations of Section 17(a) of the Securities Act in that Winkler, in the offer or sale of securities, namely the Konex Roll Program, by the use of the means or instruments of transportation or communication in interstate commerce or by the use of the mails, directly or indirectly: employed devices, schemes or artifices to defraud; obtained money or property by means of untrue statements of material facts or an omission to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or engaged in transactions, practices or courses of business which operated as a fraud or deceit upon purchasers or prospective purchasers of such securities. G.As a result of the activity described in paragraphs II.A. through E. above, Winkler willfully aided and abetted and caused violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder in that Winkler, in connection with the purchase or sale of securities, namely, the ======END OF PAGE 2====== . Konex Roll Program, by the use of the means or instrumentalities of interstate commerce, or of the mails, directly or indirectly: employed devices, schemes or artifices to defraud; made untrue statements of material facts or omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or engaged in acts, practices or courses of business which operated as a fraud or deceit upon any person. III. In view of the foregoing, it is in the public interest to impose sanctions specified in the Offer of Settlement. ACCORDINGLY, IT IS ORDERED: 1. Pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Winkler cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act or Rule 10b-5 thereunder; and 2.That Winkler be, and hereby is, barred from association with any broker, dealer, municipal securities dealer, investment company or investment adviser. By the Commission. Jonathan G. Katz Secretary ======END OF PAGE 3======