United States of America
Before the
Securities and Exchange Commission

Securities Act of 1933
Release No. 8017 / September 28, 2001

Administrative Proceeding

File No. 3-10597

I.

The Securities and Exchange Commission ("Commission") deems it appropriate that cease-and-desist proceedings against Enrico Cortesano ("Respondent") be instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act").

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement ("Offer") that 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 set forth herein, except that Respondent admits the Commission's jurisdiction over him and over the subject matter of these proceedings, Respondent has consented to the entry of this Order Instituting Public Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order ("Order") and to the entry of the cease-and-desist order set forth below.

II.

On the basis of this Order and the Offer submitted by Respondent, the Commission finds that:

1. Cortesano, age 49 and a resident of Hollywood, Florida, established an Internet website located at www.europeancontact.com.
    
2. From late September 2000 through late March 2001, Respondent engaged in a prime bank scheme by offering for sale on his Internet website securities in the form of participation interests in bank debenture trading programs ("trading programs") that purportedly lasted for a time period of one year and one week. Respondent offered the securities while no registration statement was filed with the Commission.
    
3. In furtherance of his solicitations, Respondent disseminated over his Internet website materially false and misleading statements and omissions. Among other things, Respondent misrepresented that the securities offered existed; that the returns were guaranteed to be paid on a daily, weekly, or monthly basis; that the returns ranged from approximately 60% to 200% per month, depending on the amount invested; and that there were no risks associated with investing in the trading programs.
    
4. Respondent took no reasonable steps to verify whether the securities being offered existed or whether the representations made on his website were true. Respondent used and published materials without establishing or investigating their accuracy or veracity.
    
5. As a result of the foregoing, Respondent violated Sections 5(c), 17(a)(1) and 17(a)(3) of the Securities Act by offering for sale securities when no registration statement was filed with the Commission, and using the means or instruments of transportation or communication in interstate commerce or by use of the mails, to employ devices, schemes, or artifices to defraud, or to engage in transactions, practices and courses of business which operated or would operate as a fraud or deceit upon a purchaser in the offer or sale of a security.

III.

In view of the foregoing, the Commission finds that it is appropriate to impose the sanctions specified in the Offer.

Accordingly, IT IS HEREBY ORDERED, pursuant to Section 8A of the Securities Act, that Respondent, Enrico Cortesano, cease and desist from committing or causing any violation and any future violation of Sections 5(c), 17(a)(1) and 17(a)(3) of the Securities Act.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/33-8017.htm