UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION Securities Exchange Act of 1934 Release No. 39993 / May 14, 1998 Administrative Proceeding File No. 3-9605 : In the Matter of :ORDER INSTITUTING PROCEEDINGS, :MAKING FINDINGS, AND IMPOSING David Walter Connochie, :REMEDIAL SANCTIONS : Respondent. : : I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against David Walter Connochie ("Connochie" or "Respondent") pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act"). II. In anticipation of this administrative proceeding, Connochie has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except as to paragraphs III.A. and III.B. below, which Respondent admits, Respondent consents to the issuance of this Order Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order"). Accordingly, IT IS ORDERED that an administrative proceeding be and hereby is instituted against Connochie pursuant to Sections 15(b)(6) and 19(h) of the Exchange Act. III. On the basis of this Order and the Offer, the Commission finds that: A.Connochie was a registered representative at the following registered broker-dealers: Schneider Securities, Inc. (February through May 1992); Mayfair Securities Limited (May through August 1992); and Paragon Capital Corporation (August 1992 through January 1994). B.On April 24, 1998, Connochie was permanently enjoined by the United States District Court for the Middle District of Florida in SEC v. Atlantic Capital Corp., et al., 96-1043-CIV-ORL-19A, from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. C.The Commission's complaint in the above-referenced action alleged, in part, as follows: From February 1992 through February 1993, Connochie knowingly or recklessly accepted $25,920 in bribes from Atlantic Capital Corporation ("Atlantic"), a stock promoter, in exchange for selling to his retail customers stocks that were promoted by Atlantic in a brochure entitled "Investor's Edge." Connochie knowingly or recklessly failed to tell his retail customers that he was receiving this money from Atlantic in exchange for selling the stocks promoted by Atlantic to these customers. IV. Based upon the foregoing, it is in the public interest to impose the sanctions specified in the Offer. Accordingly, IT IS HEREBY ORDERED, effective immediately, that Connochie be, and hereby is, barred from association with any broker, dealer, investment company, investment adviser or municipal securities dealer. By the Commission. Jonathan G. Katz Secretary Service List Rule 141 of the Commission's Rules of Practice provides that the Secretary, or another duly authorized officer of the Commission, shall serve a copy of all written orders or decisions issued by the Commission or by a hearing officer. The attached Order has been sent to the following parties and other persons entitled to notice: Honorable Brenda P. Murray Chief Administrative Law Judge Securities and Exchange Commission 450 Fifth Street, N.W., Stop 11-6 Washington, D.C. 20549 Securities and Exchange Commission Division of Enforcement 450 Fifth Street, N.W., Stop 4-8 Washington, D.C. 20549 Attention: Jill M. Peterson Securities and Exchange Commission Northeast Regional Office 7 World Trade Center, 13th Floor New York, New York 10048 Attention: Anahaita N. Kotval David W. Connochie 4202 Melrose Avenue Tampa, FL 33629 Respondent Jeffrey B. Crockett, Esq. Aragon, Burlington, Weil & Crockett 2699 South Bayshore Drive Miami, Florida 33131 Counsel for Respondent