UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 43379 / September 28, 2000

Administrative Proceedings
File No. 3-10324

I.

The Commission deems it appropriate and in the public interest that public proceedings pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") be, and they hereby are, instituted against Stanley H. Van Etten ("Van Etten" or "Respondent").

II.

In anticipation of the institution of these proceedings, the Respondent has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, the Respondent, without admitting or denying the findings set forth herein, except as contained in Section III 1 and 2, below, and as to the jurisdiction of the Commission over the Respondent and over the subject matter of these proceedings, which are admitted, consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order").

III.

Based on this Order and the Respondent's Offer, the Commission finds the following.

1. From at least April 1995 through at least September 1999, Van Etten was an associated person of a broker dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act.

2. On September 17, 1999, a Final Judgment of Permanent Injunction was entered against Van Etten by the United States District Court for the Northern District of Georgia in the case of Securities and Exchange Commission v. International Heritage, Inc. et al., Civil Action No. 1:98-CV-0803-RWS (N.D. Ga.), permanently enjoining him from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), and Sections 10(b) and 15(d) of the Exchange Act and Rules 10b-5 and 15d-11 promulgated thereunder.

3. The Commission's complaint alleged that during the period from in or about April 1995 through March 16, 1998, Van Etten and others, offered and sold interests in a multilevel marketing program which, in fact, functioned as a pyramid scheme. The Complaint further alleged that Van Etten and others misrepresented or omitted to disclose material facts concerning: (a) earnings which members could expect to realize from the program; (b) the risk of market saturation which arose from the pyramid nature of the program and the risk that latecomers to the program would not realize the same returns as prior members: and (c) the backgrounds of Van Etten and other promoters. The Complaint also alleged that Van Etten aided and abetted the filing with the Commission of a misleading report on Form 8-K. The complaint alleged that Van Etten thereby violated Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5, and aided and abetted violations of Section 15(d) of the Exchange Act and Rule 15d-11.

IV.

In view of the foregoing, it is in the public interest to impose the sanction specified in the Offer. Accordingly it is hereby ordered that Van Etten is barred from association with any broker or dealer, provided that after two years, Van Etten may make application to reapply 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/34-43379.htm