UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 43373 / September 28, 2000

ADMINISTRATIVE PROCEEDING
File No. 3-10320

I.

The Securities and Exchange Commission (the "Commission") deems it appropriate in the public interest and for the protection of investors that an administrative proceedings be instituted pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") against Richard J. Fulcher, Thomas J. Dolan, Walter G. Lapp, and Lawrence E. Seppanen ("respondents")

In anticipation of the institution of these administrative proceedings, respondents have each submitted an Offer of Settlement (the "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, and without admitting or denying the findings contained herein, except as to the jurisdiction of the Commission over them and the subject matter of these proceedings and the entry of the permanent injunctions as described in paragraph II.G, below, which they admit, each respondent consents to the entry of this Order Instituting Administrative Proceedings, Making Findings and Imposing Remedial Sanctions pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Order").

Accordingly, IT IS HEREBY ORDERED that public administrative proceedings be, and hereby are, instituted against respondents pursuant to Sections 15(b) and 19(h) of the Exchange Act.

II.

On the basis of this Order and each respondent's Offer, theCommission finds that:

(A) Fulcher, age 38 and a resident of Mosley, Virginia, was, from at least April 1995 through February 1998, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.

(B) Dolan, age 47 and a resident of Northport, New York, was, from at least October 1993 through September 1998, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.

(C) Lapp, age 59 and a resident of Hamilton, New Jersey, was, from at least December 1987 through October 1998, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.

(D) Seppanen, age 42 and a resident of Marleton, New Jersey, was, from at least July 1987 through September 1998, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.

(E) On September 17, 1998, the Commission filed a Complaint, amended on April 28, 1999 ("Complaint"), in the U.S. District Court for the District of Massachusetts against respondents and others, SEC v. Koontz, et al. (Civil Action No. 98-11904NG), alleging that each respondent violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Further, the Complaint alleged that each respondent violated Sections 5(a) and 5(c) of the Securities Act by selling unregistered securities and Section 15(a) of the Exchange Act by acting as an unregistered broker-dealer.

(F) Specifically, the Commission alleged that during the period from September 1997 to the filing of the Complaint in September 1998: Fulcher sold approximately $4.7 million of unregistered securities of Private Pool, LLC to approximately 27 investors and persuaded at least 4 other individuals to market the Private Pool investment; Dolan sold at least $1.1 million of unregistered securities of Private Pool to at least 3 investors; Lapp sold at least $1.5 million of unregistered securities of Private Pool to at least 5 investors; and Seppanen sold at least $437,000 of unregistered securities of Private Pool to at least 4 investors. In addition, each respondent falsely informed investors that their funds would be invested in a 40-week bank debenture trading program with a 1% per week guaranteed return through an international bond trader, one of only six in the world authorized to buy and sell money between banks, that their funds would be secured by government bonds in a two-to-one ratio, and that investors would receive a security interest in the bonds evidenced by a UCC-1 financing statement filed with the State ofNew York; and distributed materials falsely describing the purported investment and purported UCC-1 financing statements which bore unauthorized Barclays and State of New York stamps. Moreover, Fulcher made lulling statements to investors that their money was safe; and Fulcher and Dolan falsely informed Commission staff that investor funds were loans to a movie company rather than investments in a trading program.

(G) Final judgments of permanent injunction were entered by the United States District Court for the District of Massachusetts against each respondent on June 12, 2000. Each judgment is based upon the consent of each defendant, and each defendant neither admitted nor denied any of the allegations contained in the Complaint, except as to jurisdiction, which they each admitted. The judgments permanently enjoin the respective respondents from violating Sections 5(a), 5(c) and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Section 15(a) of the Exchange Act. In addition, the judgment entered against respondent Fulcher orders him to pay $660,533, plus prejudgment interest thereon in the amount of $71,845.18, representing his illegal gains from the conduct alleged, and orders him to pay a civil monetary penalty in the amount of $75,000. The judgments entered against respondents Dolan, Lapp, and Seppanen waive payment of disgorgement and do not order payment of a civil monetary penalty on the basis of the sworn representations in their Statements of Financial Condition dated December 8, 1999, November 16, 1999, and November 15, 1999, respectively, and submitted to the Commission.

III.

In view of the foregoing, the Commission deems it appropriate in the public interest and for the protection of investors to accept each respondent's Offer of Settlement and impose the sanction agreed to in the Offers.

Accordingly, IT IS HEREBY ORDERED that, pursuant to Section 15(b) of the Exchange Act, Fulcher, Dolan, Lapp, and Seppanen be, and hereby are, barred from association with any broker or dealer.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-43373.htm