Cary R. Kahn

On April 29, 2004, the Commission issued an Order Instituting Proceedings ("OIP") against Cary R. Kahn. The OIP alleged that Kahn violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. On April 30, 2004, the Division of Enforcement served Kahn with the OIP. On June 8, 2004, an administrative law judge issued an order granting Kahn until June 21, 2004, to file an answer. Kahn did not file an answer and, on June 30, 2004, the law judge issued an order requiring Kahn to show cause why he should not be held in default. Kahn failed to respond and, on July 20, 2004, the law judge issued an order (the "Order") granting the Division's motion to enter a default judgment against Kahn.¹ Kahn has not moved to set aside the default.

On August 31, 2004, the Division asked that the Commission declare the Order final. Kahn has not responded to the Division's motion. We believe that, in accordance with Rule 155(b) of the Rules of Practice,² a reasonable time to set aside the default judgment has passed.

Accordingly, notice is hereby given, pursuant to Rule 360(e) of the Commission's Rules of Practice,³ that the Order has become the final decision of the Commission. The Order, which (a) ordered Kahn to cease and desist from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Exchange Act Rule 10b-5; and (b) required Kahn to disgorge $12,186.21, plus $1,217.54 in interest, is hereby declared final.

The payment of disgorgement and interest shall be made on the first day after the date of this notice.⁴ Payment shall be: (a) made by United States postal money order, certified check, bank cashier's check, or bank money order; (b) made payable to the Securities and Exchange Commission; (c) accompanied by a cover letter identifying Cary R. Kahn as the respondent in Administrative Proceeding No. 3-11468; and (d) mailed or delivered to the Office of Financial Management, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, Virginia 22312. A copy of the cover letter and instrument of payment shall be sent to Polly A. Atkinson, Division of Enforcement, Central Regional Office, Securities and Exchange Commission, 1801 California St., Suite 1500, Denver, Colorado 80202-2656.

For the Commission by the Office of the General Counsel, pursuant to delegated authority.

See Also: 34-50046

Endnotes

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¹  Cary R. Kahn, Order Making Findings and Imposing Remedial Sanctions by Default, Exchange Act Rel. No. 50046 (July 20, 2004), __ SEC Docket ____.

²  17 C.F.R. § 201.155(b).

³  17 C.F.R. § 201.360(e).

⁴  Rule of Practice 601(a) specifies that funds due pursuant to an order by a hearing officer shall be paid on the first day after the order becomes final pursuant to Rule 360. 17 C.F.R. § 201.601(a).