==========================================START OF PAGE 1====== UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 38425 / March 20, 1997 ADMINISTRATIVE PROCEEDING File No. 3-9278 ______________________________ : In the Matter of : ORDER INSTITUTING A PUBLIC : ADMINISTRATIVE PROCEEDING : PURSUANT TO SECTION 15(b) : OF THE SECURITIES Joseph Riccio, : EXCHANGE ACT OF 1934, : MAKING FINDINGS AND : IMPOSING REMEDIAL Respondent. : SANCTIONS : : ______________________________: I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") be, and hereby is, instituted against respondent Joseph Riccio ("Riccio"). II. In anticipation of the institution of this proceeding, Riccio has submitted an Offer of Settlement (the "Offer"), which the Commission has determined is in the public interest to accept. Solely for the purpose of this proceeding, and any other proceeding 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 below, except as to the jurisdiction of the Commission over him and over the subject matter of this proceeding, and the entry of the injunction set forth in Paragraph III.2., which are admitted, Riccio consents to the entry of this Order and the imposition of the remedial sanctions set forth below. ==========================================START OF PAGE 2====== III. On the basis of this Order and the Offer, the Commission finds that:1/ 1. From May 1989 through March 1, 1991, Riccio was associated as head trader with Global America, Inc. ("Global"), a broker-dealer that was then registered with the Commission pursuant to Section 15(b) of the Exchange Act. 2. On February 9, 1996, the United States District Court for the Southern District of New York in Securities and Exchange Commission v. Michael J. Markowski and Joseph Riccio, 95 Civ. 6931 (KTD), entered a final consent judgment against Riccio, who neither admitted nor denied the allegations in the complaint, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Exchange Act and Rules 10b-5 and 10b-6. 3. The Commission's complaint in SEC v. Markowski alleges that, from in or about February 1990 through January 1991, (1) Global underwrote the initial public offerings ("IPOs") of common stock and units by Capucino's, Inc., Mountaintop Corp., and Auto Depot, Inc. (2) Riccio manipulated the markets for those securities through Global's high pressure sales tactics and its domination and control of the market for the securities, (3) Global representatives, under the direction of Riccio, solicited purchases of the aftermarket common shares before the effective date of each of the IPOs and tied the purchase of aftermarket shares to the units, and (4) Riccio caused the price of those securities to remain at artificially high levels, and created actual and apparent trading in those securities, by failing to execute customer sell orders, continuing to purchase those securities for Global's own inventory, and refusing to lower Global's bids. IV. In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer and to impose the remedial sanctions specified in the Offer. 1/ The findings herein are made pursuant to the Offer and shall not be binding on any other person or entity, named as a respondent or otherwise, in this or any other proceedings. ==========================================START OF PAGE 3====== Accordingly, IT IS HEREBY ORDERED that, pursuant to Section 15(b) of the Exchange Act, Riccio is barred from association with any broker, dealer, investment adviser, investment company or municipal securities dealer. By the Commission. Jonathan G. Katz Secretary