COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: February 27, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Stephen S. Berkeley (602) 542-0509


COMMISSION REVOKES REGISTRATIONS OF TWO SECURITIES DEALERS

The Arizona Corporation Commission issued a decision on February 24 ordering the revocation of the securities dealer registrations of Norcross Securities, Inc. ("Norcross") and Toluca Pacific Securities Corporation ("Toluca").

The Commission found grounds to revoke Norcross' dealer registration, because Norcross is insolvent or in unsound financial condition, and because Norcross is lacking in integrity or is not of good business reputation. The Commission order is based on findings that Norcross failed to pay arbitration awards and court judgments issued against the firm. Norcross ceased conducting business in February 1997.

"The Division will not allow registrants who fail to honor arbitration awards and court judgments issued against them to maintain the privileges associated with registration," said Michael G. Burton, Sr., Director of the Commission's Securities Division.

The Securities Division filed a Notice of Opportunity for Hearing against Norcross in December 1997. Norcross was properly served with the notice and failed to request a hearing within the time period prescribed.

In a separate action, the Commission ordered the revocation of Toluca's securities dealer registration. The Commission found that Toluca was enjoined from violations of federal securities laws by the United States District Court of the Central District of California. The injunction resulted from the Court's findings that Toluca manipulated the market for the stock of Kenesis, Inc.

"The Commission's Securities Division will continue to bring revocation proceedings against securities dealers or salesman who have been enjoined from violations of state and federal securities regulations," said Commissioner-Chairman Jim Irvin.

Anyone with questions regarding Norcross or Toluca please contact Stephen Berkeley at (602) 542-0509. Questions concerning other securities dealer or salesman should contact the Division at (602) 542-4242.

BACKGROUND INFORMATION

Securities Division Docket Numbers:
Norcross Securities, Inc. S-3255-I
Toluca Pacific Securities Corporation S-3259-I
January 13, 1998 Commission News Release :"Securities Division Announces Actions to Revoke Registrations of 2 Securities Dealers."
The Arizona Republic, January 14, 1998, "Securities Dealers' Licenses May Be Revoked"