UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 50913 / December 22, 2004

Admin. Proc. File No. 3-11781

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against MARK J. CHAVEZ ("Chavez" or "Respondent").

II.

In anticipation of the institution of these proceedings, Respondent has 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 herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

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

1. MARK J. CHAVEZ, age 40, was a manager of the Pompano Beach branch office of Preferred Securities Group, Inc. ("Preferred"), a registered broker dealer, from at least March through June 1999. Chavez was involved in directing the Orex Gold Mines Corporation ("Orex") solicitation campaign. Chavez currently resides in Boca Raton, Florida.

2. On November 24, 2004, a final judgment was entered by consent against Chavez, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and from aiding and abetting violations of Section 15(g) of the Exchange Act and Rules 15g-2, 15g-4, and 15g-5 thereunder, in the civil action entitled Securities and Exchange Commission v. John W. Surgent, et al., Civil Action Number 04-60493 -CIV, in the United States District Court for the Southern District of Florida.

3. The Commission's complaint alleged, among other things, that, in connection with the sale of Orex stock, an unregistered security, Chavez engaged in various sales practice abuses, allowed unregistered brokers to use his name while soliciting investments in Orex, made false and misleading statements about Orex, failed to make the required penny stock disclosures to customers concerning Orex, including but not limited to the failure to disclose the actual amount of compensation received by Chavez and other of Preferred's personnel from the transactions in Orex stock, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Chavez's Offer.

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Chavez be, and hereby is, barred from association with any broker or dealer.

Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

By the Commission.

http://www.sec.gov/litigation/admin/34-50913.htm