And look more on Greenway at the SEC:
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 37775 / October 2, 1996
ADMINISTRATIVE PROCEEDING
File No. 3-9050
------------------------------
:
In the Matter of :
: ORDER MAKING FINDINGS AND
DANIEL D. DIETRICH and : IMPOSING REMEDIAL SANCTIONS
ROBERT J. JUDGE : BY DEFAULT AGAINST RESPONDENT
: DANIEL D. DIETRICH
------------------------------
Respondent Daniel D. Dietrich is in default under Rules
155(a) and 220(f) of the Securities and Exchange Commission's
("Commission") Rules of Practice, 17 C.F.R. 201.155(a),
.220(f) (1996), because he has not answered the Order Instituting
Public Proceedings ("Order") issued on July 26, 1996, which he
received on July 31, 1996. The Order specifies that the
Respondent may be deemed in default and the proceeding may be
determined against him upon consideration of the allegations in
the Order, which may be deemed to be true, if the Respondent
fails to file an answer within 20 days after service upon him of
the Order. Respondent Dietrich also failed to participate in a
prehearing conference in this matter on September 5, 1996, after
being notified of the date and time, and he failed to respond to
my Order to Show Cause, issued on September 16, 1996.
Accordingly, I find that the following allegations set out
in the Order are true:-[1]-
A. From September 1992 to November 1992, Respondent
Dietrich was a registered representative of Greenway
Capital Corporation, a broker-dealer registered with
the Commission pursuant to Section 15(b)(1) of the
Securities Exchange Act of 1934 ("Exchange Act");
B. On December 8, 1993, the United States District Court
for the Southern District of New York issued a Partial
Final Judgment of Permanent Injunction by consent
against Respondent Dietrich enjoining him from further
---------FOOTNOTES----------
-[1]- The findings herein are binding solely upon
Respondent Daniel D. Dietrich and not on any other respondent in
this proceeding.
=================START OF PAGE 2======
violations of Sections 17(a) of the Securities Act of
1933 and Section 10(b) of the Exchange Act and Rule
10b-5 thereunder. SEC v. Aqua Technologies, Inc., 93
Civ. 8223 (WK) (S.D.N.Y. Dec. 8, 1993). At that time,
Respondent Dietrich did not admit any allegations or
consent to the Commission's demands for disgorgement,
civil penalties, and prejudgment interest;
C. From September 1992 through September 1993, while
associated with a registered broker-dealer, Respondent
Dietrich violated the antifraud provisions by selling
shares of Aqua Technologies, Inc. ("Aqua") common stock
to public investors through the use of materially false
and misleading statements and omissions. Respondent
Dietrich prepared and sent to prospective investors an
Aqua Technologies, Inc. Business Plan ("Business
Plan"). In that document, Respondent Dietrich
misrepresented that Aqua was the exclusive marketing
arm of Water Systems Development Corporation in the
eastern United States and Africa. The Business Plan
also misrepresented that Aqua was negotiating the
acquisition of distribution rights of products
manufactured by a Minnesota company called Coster
Engineering. These statements were false. In
addition, Respondent Dietrich failed to disclose that
the proceeds of the Aqua offering would not be used for
Aqua's purported business, but instead would be
diverted to Respondent Dietrich's personal use. These
misrepresentations and omissions were material, and
Respondent Dietrich made them knowingly or with
reckless disregard for the truth;
D. On February 14, 1995, the district court granted the
Commission's Motion for Summary Judgment as to
liability against Respondent Dietrich; and
E. On January 23, 1996, the district court entered a Final
Judgment against Respondent Dietrich, which awarded the
Commission disgorgement, civil penalties, and
prejudgment interest.
In view of the foregoing, I find it in the public interest
to sanction Respondent Dietrich pursuant to Sections 15(b) and
19(h) of the Exchange Act.
I ORDER that Daniel D. Dietrich is barred from association
with any broker or dealer and from association with a member of a
national securities exchange or registered securities
association.
=================START OF PAGE 3======
____________________________
Carol Fox Foelak
Administrative Law Judge
http://www.sec.gov/enforce/adminact/3437775.txt
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