UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 46358 / August 15, 2002
ADMINISTRATIVE PROCEEDING
File No. 3-10865
PUBLIC ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST
JOSEPH ORLANDO AND VICTOR SAMAHA
On August 15, 2002, the Commission issued an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Order) against Joseph Orlando and Victor Samaha (Respondents). In the Order, the Division of Enforcement alleges that after a jury trial each Respondent was convicted of one count of conspiracy to commit securities fraud, a felony, and seven substantive counts of securities fraud, all felonies, and that judgments of conviction have been entered against them. United States v. Joseph Orlando, Criminal Case No. 98-414-08 (D. N.J. 1998) and United States v. Victor Samaha, Criminal Case No. 98-414-06 (D. N.J. 1998).
In the criminal cases, the U.S. Attorney for the District of New Jersey alleged in the indictment that the Respondents, while employed as stockbrokers and in various supervisory positions at L.C. Wegard & Co., Inc., a broker dealer whose registration was subsequently revoked, participated in a conspiracy to commit securities fraud by inducing unsuspecting investors to purchase speculative high risk securities through the use of fraudulent and deceptive sales practices, and by concealing such practices from regulatory authorities. The Respondents worked in various offices of L.C. Wegard located in Monroeville, Pennsylvania, Princeton, New Jersey and Providence, Rhode Island.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondents an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest.
This is the third administrative proceeding instituted by the Commission against individuals convicted in the conspiracy, one of whom consented to the issuance of a Commission Order barring him from association with any broker or dealer. In the Matter of Mark McDermott, Admin. Pro. No. 3-10707, Exchange Act Release No. 45461 (February 20, 2002). Thirteen others were named as respondents in another administrative proceeding, In the Matter of John Adams, et al., Admin. Pro. No. 3-10702, Exchange Act Release No. 45455 (February 15, 2002). In that proceeding, Orders Making Findings and Imposing Sanction by Default were issued as to all thirteen Respondents: Lawrence Weil (Exchange Act Release No. 45689, April 4, 2002); John Adams, Jr., Michael McDermott, Palmer Myers, and Gary Smolokoff (Exchange Act Release No. 45767, April 17, 2002); Malik Tawil (Exchange Act Release No. 45802, April 23, 2002); Curtis Marchand (Exchange Act Release No. 45841, April 29, 2002); Neil White (Exchange Act Release No. 45917, May 13, 2002); Ronald Bongo and Samuel Del Presto (Exchange Act Release No. 46063, June 12, 2002); Sean Hart and David Nelson (Exchange Act Release No. 46109, June 25, 2002); and Daniel Petronelli (Exchange Act Release No. 46199 (July 15, 2002).
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