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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Release No. 43942 / February 8, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10418


In the Matter of

M. Mahmud Awan,
Respondent.


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  ORDER INSTITUTING CEASE-
AND-DESIST PROCEEDINGS
PURSUANT TO SECTION 21C OF
THE SECURITIES EXCHANGE ACT
OF 1934 AND FINDINGS AND
ORDER OF THE COMMISSION

I.

The Commission deems it appropriate that public administrative proceedings be, and they hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether M. Mahmud Awan ("Awan") violated Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

II.

In anticipation of the institution of these administrative proceedings, Awan ("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 matters set forth herein, consents to the issuance of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("the Order"), and to the entry of the findings, and imposition of the remedial sanctions set forth below.

III.

On the basis of this Order and the Respondent's Offer of Settlement ("Offer"), the Commission finds the following:

A. FACTS

1. Respondent

M. Mahmud Awan, age 49, has been at relevant times Chairman of the Board, a Director and beneficial owner of more than ten percent of the equity securities of Technical Communications Corp. ("Technical Communications"). Awan has served as Chairman and Chief Executive Officer of TechMan International Corp., a privately held manufacturer of fiber optic medical devices and communication systems since 1982.

2. ISSUER

Technical Communications Corp., a Massachusetts corporation with principal offices in Concord, Massachusetts, designs, develops, manufactures, distributes, markets, and sells communications security devices and systems. According to Technical Communications Annual Report on Form 10-K for the year ended September 30, 2000, Technical Communications had total assets of over $7.3 million and shareholders' equity of over $7.2 million as of September 30, 2000. Technical Communications had 1,308,291 shares of common stock outstanding as of December 15, 2000. Technical Communications reported a net loss of approximately $1.7 million, or $1.35 per common share, for its 2000 fiscal year. Technical Communications common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act, and is traded on the NASDAQ SmallCap Market System.

B. APPLICABLE LAW

Section 13(g) of the Exchange Act and Rule 13d-1(c) thereunder, in relevant part, require any person who, as of December 31, 1978 or as of the end of any calendar year thereafter, beneficially owns more than 5 percent of any equity security of a company registered pursuant to Section 12 of the Exchange Act, and who is not otherwise required to file a Schedule 13D, to file a Schedule 13G with the Commission within 45 days of the end of the calendar year in which the obligation arises. Rule 13d-2(b) provides that yearly amendments shall be filed to Schedule 13G reporting changes in the information previously reported.

Section 16(a) of the Exchange Act requires that beneficial owners of more than ten percent of any class of any equity security registered pursuant to Section 12 of the Exchange Act and the officers and directors of the issuer of any such security (hereinafter "insider") file a statement with the Commission by the effective date of a registration statement filed pursuant to Section 12 of the Exchange Act, or within ten days of becoming such officer, director or beneficial owner, reporting the amount of all equity securities of such issuer of which they are a beneficial owner. Section 16(a) also requires an insider to file with the Commission within ten days after the close of each calendar month, if there has been a change in the insider's ownership of the issuer's equity securities during such month, a statement indicating such changes. The rules enacted pursuant to Section 16(a) provide that an initial statement by an insider is to be made on a Form 3 and subsequent statements of changes in beneficial ownership are to be made on a Form 4 or a Form 5.

C. AWAN'S VIOLATIONS OF SECTIONS 13(g) and 16(a) OF THE EXCHANGE ACT AND THE RULES THEREUNDER

In connection with changes in his ownership of Technical Communications securities, Awan failed to timely file a Schedule 13G for one month, and failed to file an amendment to Schedule 13G for more than eleven months. In addition, Awan failed to timely file or failed to file thirteen Forms 4 (with delinquency periods ranging from one month to more than one year and six months), and two Forms 5, resulting in delinquencies of more than one month and two months. The total value of the transactions in Technical Communications stock for which Awan filed late or failed to file Forms 4 and 5 is approximately $727,249.

Awan's history of delinquency, compiled from the ownership reports he has filed with the Commission for Technical Communications, is set forth below:


M. MAHMUD AWAN
Forms 3, 4 and 5 For Holdings and
Transactions in the Equity Securities of
Technical Communications Corp.
May 26, 1998 through January 22, 2001


Month
of
Trans.
Type No. of
Shares
Price
Per
Share*
Total
$Value
Date
Due/
Date
Rec'd
Approx.
Yrs/Mos/
Wks.Late

  Form 3

05-98   128,978     05-26-98 T
          05-22-98  

  Forms 4, 5

05-98 Buy 1,000 5.40 5,400 06-10-98 T
    2,000 6.00 12,000 06-10-98  
    3,000 6.00 18,000    
    400 6.13 2,452    
 
08-98 Buy 2,000 6.00 12,000 09-10-98 T
    2,000 6.00 12,000 09-09-98  
    2,000 6.13 12,260    
    1,000 5.38 5,380    
    1,000 5.88 5,880    
    2,000 6.00 12,000    
    3,000 6.00 18,000    
    2,000 5.38 10,760    
    200 5.50 1,100    
 
09-98 Buy 2,000 5.13 10,260 10-13-98 T
    1,250 5.00 6,250 10-09-98  
    1,000 5.13 5,130    
    1,000 4.63 4,630    
    2,000 5.00 10,000    
    3,000 5.25 15,750    
    2,000 5.50 11,000    
    2,000 5.50 11,000    
    800 5.25 4,200    
    1,000 5.50 5,500    
    1,000 5.38 5,380    
    3,000 5.38 16,140    
    3,000 5.38 16,140    
    2,000 5.38 10,760    
    2,000 5.38 10,760    
    1,600 5.38 8,608    
    1,000 5.25 5,250    
    1,000 5.38 5,380    
    1,000 5.13 5,130    
    200 5.06 1,012    
    100 5.19 519    
    100 5.00 500    
    100 5.00 500    
    2,000 4.13 8,260    
    2,000 4.63 9,260    
    1,000 4.63 4,630    
    500 4.50 2,250    
    500 4.50 2,250    
    500 4.63 2,315    
    100 4.50 450    
    1,000 4.50 4,500    
             
FY-98 Form 5       11-16-98 2m
          01-19-99  
             
10-98 Buy 500 4.50 2,250 11-10-98 2m1w
    200 4.50 900 01-19-99  
    100 4.63 463    
    200 4.50 900    
    200 4.50 900    
    200 4.63 926    
    200 4.38 876    
    200 4.38 876    
    200 4.38 876    
    200 4.38 876    
    200 4.63 926    
    200 4.50 900    
    200 4.63 926    
    200 4.75 950    
    200 4.75 950    
    200 5.13 1,026    
    100 4.50 450    
    100 4.50 450    
    200 4.19 838    
    100 4.50 450    
    100 4.25 425    
    100 4.25 425    
    100 4.25 425    
    100 4.25 425    
    100 4.38 438    
    100 4.25 425    
    100 4.38 438    
    100 4.13 413    
    100 4.13 413    
    100 4.38 438    
    100 4.25 425    
    100 4.75 475    
    100 4.38 438    
        23,312    
11-98 Buy 100 4.63 463 12-10-98 1m1w
    100 4.63 463 01-19-99  
    100 4.50 450    
    100 4.31 431    
    100 4.25 425    
        2,232    
 
02-99 Other 500 N/R N/R 03-10-99 T
  Acq(grant of c/s)       03-10-99  
 
02-99 Opt 1,000 3.40 3,400 11-15-99 T
  Grant       03-10-99  
03-99 Buy 1,000 3.50 3,500 04-12-99 9m
    500 3.38 1,690 01-10-00  
    300 3.38 1,014    
    200 3.13 626    
    100 3.13 313    
      7,143    
 
03-99 Sale 1,000 3.13 3,130 04-12-99 9m
    1,000 3.00 3,000 01-10-00  
    1,000 2.88 2,880    
    1,000 2.38 2,380    
    1,000 2.50 2,500    
    1,000 3.13 3,130    
    1,000 3.00 3,000    
    1,000 2.88 2,880    
    200 2.38 476    
    800 2.38 1,904    
    200 2.50 500    
    800 2.50 2,000    
        27,780    
 
04-99 Buy 500 2.63 1,315 05-10-99 8m
    200 2.44 488 01-10-00  
    300 2.38 714    
    1,000 2.25 2,250    
    200 3.00 600    
    200 2.94 588    
    200 3.00 600    
    200 3.06 612    
    100 3.00 300    
    100 3.00 300    
    200 3.13 626    
        8,393    
 
05-99 Buy 100 3.00 300 06-10-99 7m
    100 3.60 360 01-10-00  
    200 3.00 600    
    300 3.00 900    
    200 3.06 612    
    100 3.13 313    
    200 2.97 594    
        3,679    
 
05-99 Sale 1,000 2.56 2,560 06-10-99 7m
    1,000 2.63 2,630 01-10-00  
    1,000 2.97 2,970    
    1,000 2.56 2,560    
    1,000 2.63 2,630    
    200 2.97 594    
    800 2.97 2,376    
    200 2.81 562    
    274 2.81 770    
    1,074 2.81 3,018    
    452 2.81 1,270    
    1,000 2.81 2,810    
    48 2.81 135    
    1,000 2.81 2,810    
    952 2.81 2,675    
    548 2.69 1,474    
    1,000 2.69 2,690    
    452 2.69 1,216    
      35,750    
 
06-99 Buy 200 2.75 550 07-12-99 6m
    200 2.75 550 01-10-00  
    100 2.28 228    
    200 2.50 500    
    100 2.28 228    
      2,056    
 
06-99 Sale 1,000 2.13 2,130 07-12-99 6m
    1,000 2.25 2,250 01-10-00  
    900 2.38 2,142    
    548 2.50 1,370    
    552 2.50 1,380    
    48 2.03 97    
    730 2.03 1,482    
    1,222 2.03 2,481    
    900 2.03 1,827    
    100 2.06 206    
    778 2.13 1,657    
    222 2.13 473    
    2,000 2.25 4,500    
    900 2.13 1,917    
    100 2.25 225    
    778 2.38 1,852    
    222 2.38 528    
    2,000 2.09 4,180    
    1,000 2.44 2,440    
    1,000 2.63 2,630    
    778 2.50 1,945    
    122 2.50 305    
    878 2.75 2,415    
    222 2.75 611    
    400 2.56 1,024    
        42,067    
 
06-99 Sale 900 2.06 1,854 07-12-99 1y6m1w
    1,100 2.13 2,343 Not rec'd  
    2,000 2.16 4,320    
    400 2.13 852    
    100 2.13 213    
    500 2.13 1,065    
    1,000 2.25 2,250    
    1,000 2.09 2,090    
    1,000 2.31 2,310    
    500 2.31 1,155    
    500 2.31 1,155    
    1,000 2.38 2,380    
    800 2.44 1,952    
    200 2.88 576    
    1,000 2.88 2,880    
    1,000 2.69 2,690    
    500 2.44 1,220    
    100 2.63 263    
    400 2.66 1,064    
    1,000 2.66 2,660    
    100 2.63 263    
    500 2.75 1,375    
    1,000 2.75 2,750    
    400 2.75 1,100    
    600 2.50 1,500    
    600 2.56 1,536    
    400 2.56 1,024    
    400 2.56 1,024    
    1,500 2.50 3,750    
    500 2.56 1,280    
    1,400 2.44 3,416    
    600 2.50 1,500    
    2,000 2.38 4,760    
        60,570    
 
07-99 Sale 500 2.41 1,205 08-10-99 5m
    1,500 2.50 3,750 01-10-00  
    2,000 2.44 4,880    
    1,400 2.38 3,332    
    600 2.44 1,464    
    1,400 2.25 3,150    
    600 2.56 1,536    
    1,100 2.50 2,750    
    900 2.75 2,475    
    1,300 2.28 2,964    
    100 2.63 263    
    600 2.75 1,650    
    400 2.44 976    
    1,000 2.50 2,500    
    600 2.56 1,536    
    400 2.75 1,100    
        35,531    
 
07-99 Sale 105 2.56 269 08-10-99 1y5m1w
          Not rec'd  
07-99 Buy 200 2.50 500 08-10-99 5m
    300 2.56 768 01-10-00  
    200 2.97 594    
    200 2.88 576    
    1,000 2.75 2,750    
    105 2.56 256    
        5,444    
 
08-99 Buy 300 3.00 900 09-10-99 4m
    300 2.88 864 01-10-00  
    300 2.75 825    
        2,589    
 
09-99 Buy 500 2.69 1,345 10-12-99 3m
          01-10-00  
 
FY-99 Form 5       11-15-99 1m3w
          01-10-00  
 
10-99 Buy 1,000 2.88 2,880 11-10-99 2m
    1,000 2.88 2,880 01-10-00  
        5,760    
 
11-99 Buy 300 3.63 1,089 12-10-99 1m
          01-10-00  
 
11-99 Acq 585 N/R N/R 12-10-99 1m
  (services rendered)     01-10-00    
 
12-99 Sale 1,000 4.03 4,030 01-10-00 T
    500 4.03 2,015 01-10-00  
    300 4.03 1,209    
    200 4.03 806    
    100 4.19 419    
    500 4.19 2,095    
    200 4.19 838    
    300 4.19 1,257    
    1,000 4.19 4,190    
    200 4.17 834    
    200 4.17 834    
    200 4.17 834    
    200 4.17 834    
    100 4.17 417    
    100 4.47 447    
    200 4.47 894    
    100 4.47 447    
    100 4.13 413    
    200 4.13 826    
    300 4.13 1,239    
    200 4.13 826    
    200 4.13 826    
    100 4.13 413    
    200 4.13 826    
    200 4.13 826    
    200 4.13 826    
    200 4.13 826    
    100 4.13 413    
    100 4.41 441    
    200 4.41 882    
    300 4.41 1,323    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    200 4.41 882    
    300 4.41 1,323    
    200 4.41 882    
    200 4.41 882    
    1,000 4.41 4,410    
    300 4.88 1,464    
    300 4.88 1,464    
    300 4.88 1,464    
    100 4.88 488    
    400 4.88 1,952    
    400 4.88 1,952    
    600 4.88 2,928    
    1,000 4.88 4,880    
    100 4.88 488    
             
01-00 Sale 3,000 5.88 17,640 02-10-00 1m
    600 5.81 3,486 03-13-00  
    2,000 5.31 10,620    
    2,000 5.38 10,760    
    3,000 5.63 16,890    
    500 5.69 2,845    
    2,000 5.59 11,180    
    3,000 5.59 16,770    
    2,000 5.66 11,320    
    1,900 5.50 10,450    
    1,000 5.69 5,690    
    800 5.44 4,352    
    500 5.38 2,690    
    3,000 5.28 15,840    
    2,000 5.28 10,560    
    1,500 5.34 8,010    
    2,000 5.38 10,760    
    500 6.19 3,095    
    2,500 6.25 15,625    
    500 6.50 3,250    
    2,000 6.75 13,500    
    1,000 7.44 7,440    
    500 7.97 3,985    
    100 8.34 834    
    2,400 7.25 17,400    
    100 7.75 775    
    500 7.81 3,905    
    500 7.88 3,940    
    3,602 7.75 27,916    
    398 7.88 3,136    
    500 7.88 3,940    
    1,500 7.63 11,445    
    500 7.63 3,815    
    2,500 7.69 19,225    
    3,000 7.50 22,500    
    1,600 7.50 12,000    
    2,000 6.56 13,120    
    2,000 6.75 13,500    
    2,000 6.19 12,380    
    2,000 5.50 11,000    
    400 5.38 2,152    
    1,600 5.44 8,704    
        408,445    
 
02-00 Acq 500 N/R N/R 03-10-00 T
  (services rendered)       03-10-00  
             
02-00 Opt 1,000 5.10 5,100 03-10-00 T
  Grant       03-10-00  
 
06-00 Sale 2,000 4.63 9,260 07-10-00 1m
    3,000 4.63 13,890 08-10-00  
    3,000 4.63 13,890    
    2,000 4.63 9,260    
    500 4.63 2,315    
    700 4.50 3,150    
    500 4.06 2,030    
        53,795    
 
08-00 Acq 633 3.00 1,899 09-11-00 T
          09-11-00  
Total value late
reported transactions:
$727,249    

* = Price per share rounded off
**= Lateness calculated through January 22, 2001
T= Timely
Opt = Option
Acq = Acquired
N/R = Not reported

Schedules 13G and Amendments
Technical Communications Corporation
December 10, 1998 through January 22, 2001


Date
of
Trans.
Type No. of
Shares
  Event
Triggering
Amendment
Date
Due/
Date
Rec'd
Approx.
Yrs/Mos/
Wks.Late

12-10-98 13G 199,028     12-10-98 
01-07-99 
1m
 
1998 13G Amendment     Change
in
Information
02-15-99*
02-10-99 
T  
 
1999 13G Amendment "     02-14-00 
Not rec'd**
11m1w  

*=For the purpose of this table, the date due for amendments reflects the date the obligation to file the amendment arose.
**=Lateness calculated through January 22, 2001.

IV.

FINDINGS

Based on the above, the Commission finds that Awan violated Sections 13(g) and 16(a) of the Exchange Act, Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

V.

OFFER OF SETTLEMENT

Awan has submitted an Offer of Settlement in this proceeding which the Commission has determined to accept. Awan, in his Offer, consents to this Order making findings, as set forth above, and ordering him to cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

VI.

ORDER

Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Awan cease and desist from committing or causing any violations of, and committing or causing any future violations of, Sections 13(g) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, 16a-2 and 16a-3 promulgated thereunder.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-43942.htm


Modified: 02/21/2001