UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION Securities Exchange Act of 1934 Release No. 40076 / June 5, 1998 Administrative Proceeding File No. 3-9621 : : In the Matter of : ORDER INSTITUTING PROCEEDINGS, : MAKING FINDINGS, AND IMPOSING Michael Cardascia, : 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 Michael Cardascia ("Cardascia" 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, Cardascia 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 Cardascia pursuant to Sections 15(b)(6) and 19(h) of the Exchange Act. ======END OF PAGE 1====== III. On the basis of this Order and the Offer, the Commission finds that: A. Between January 1992 and August 1992, Cardascia was a registered representative at the Huntington, New York branch of Corporate Securities Group, Inc., a broker-dealer registered with the Commission. B. On April 2, 1998, Cardascia 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 March 1992 through April 1992, Cardascia knowingly or recklessly accepted $95,125 in undisclosed compensation 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." Cardascia 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 Cardascia 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 ======END OF PAGE 2====== 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 Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions, 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 8-9 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 Michael C. Cardascia 15 Cherrywood Lane Manhasset, New York 11030 Respondent Ira Lee Sorkin, Esq. Squadron, Ellenoff, Plesent & Sheinfeld, LLP 551 Fifth Avenue New York, N.Y. 10176-0001 Counsel for Respondent ======END OF PAGE 3======