UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 43378 / September 28, 2000

INVESTMENT COMPANY ACT OF 1940
Release No. 24669 / September 28, 2000

ADMINISTRATIVE PROCEEDING
File No. 3-10323

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute public administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 9(b) of the Investment Company Act of 1940 ("Investment Company Act") against Respondent Douglas R. Shisler ("Shisler").

II.

In anticipation of the institution of these proceedings, Respondent Shisler submitted an Offer of Settlement ("Offer") to the Commission, 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 in which the Commission is a party, and without admitting or denying the findings contained herein, except as to the jurisdiction of the Commission over Respondent Shisler and over the subject matter of this proceeding and except as to the entry of a Final Judgment of Permanent Injunction and Other Equitable Relief as set forth in Section III paragraph 4. below, which are admitted, Respondent Shisler by his Offer consents to the entry of findings and remedial sanctions set forth below.

Accordingly, IT IS ORDERED that proceedings pursuant to Sections 15(b) of the Exchange Act and Section 9(b) of the Investment Company Act be, and, they hereby are, instituted.

III.

On the basis of this Order and the Offer of Settlement submitted by Respondent Shisler, the Commission finds that:

1. At all relevant times, Respondent Shisler was a director of Cyprus Fund, Inc. ("Cyprus Fund"), an unregistered foreign investment company.

2. In conducting the offer and sale of shares of the Cyprus Fund for the account of others, Shisler acted as a broker within the meaning of Section 3(a)(4) of the Exchange Act. At the time he engaged in such offers and sales, Shisler was neither registered with the Commission as a broker nor associated with a registered broker as required by Section 15(a) of the Exchange Act.

3. On August 27, 1999, the Commission filed an emergency action seeking a temporary restraining order, asset freeze and appointment of a receiver against Cyprus Fund, its investment advisor, Latin American Services Co., Ltd., Shisler, and the other directors of Cyprus Fund. Securities and Exchange Commission v. Latin American Services Co., Ltd., Eric V. Bartoli, James L. Binge, Douglas R. Shisler and Peter J. Esposito, Case No. 99-2360-Civ-Davis (S.D. Fla.). In its Complaint, the Commission alleged the ongoing fraudulent sale of unregistered securities, specifically Cyprus Fund shares, and the misappropriation of investor funds by principals of Cyprus Fund, including Shisler. On September 3, 1999, the United States District Court for the Southern District of Florida entered a preliminary injunction against defendants, including Shisler, and extended the asset freeze to the conclusion of the case.

4. On July 10, 2000, a Final Judgment of Permanent Injunction and Other Relief was entered against Shisler, by consent, enjoining him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified by Respondent Shisler in his Offer of Settlement.

Accordingly, IT IS ORDERED that Respondent Shisler be, and hereby is, barred from association with any broker or dealer and is prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal

underwriter for, a registered investment company or affiliated person of such investment adviser, depositor or principal underwriter.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-43378.htm