The Securities and Exchange Commission

[Stock]

33-8804 May 11, 2007 Donald J. Lakin
Other Release No.: 34-55749
Note: See also the Order in this matter
http://www.sec.gov/litigation/admin/2007/33-8804.pdf

U.S. SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 8804 / May 11, 2007
SECURITIES EXCHANGE ACT OF 1934
Release No. 55749 / May 11, 2007
Administrative Proceeding
File No. 3-12634
In the Matter of Donald J. Lakin
The United States Securities and Exchange Commission (Commission) today issued an Order Instituting Administrative and Cease-and-Desist Proceedings against Donald J. Lakin, 38, of Anaheim, California. The Order alleges that from at least May 2002 through April 2003, Lakin cold called hundreds of prospective investors and used high pressure sales tactics to offer and sell securities issued by Sunrise Energy, Inc. (Sunrise) through unregistered transactions. Lakin also employed people through his company, Pacific Resources Group, Inc. (Pacific Resources), who sold Sunrise securities on his behalf. Lakin misrepresented to investors that the Sunrise securities were low risk investments with projected returns ranging from 55% to 106% per year. Lakin did not take any steps to verify his claims about the low risk, high return nature of the Sunrise securities, and continued to represent that they were low risk, high return investments even after learning that investors were receiving minimal returns. Ultimately, most Sunrise investors lost more than 95% of the money they invested. Lakin also received commissions from Sunrise of 40% to 50% and did not disclose those commissions to investors. Lakin and Pacific Resources received at least $374,000 in ill-gotten gains from Sunrise bank accounts holding investor funds.
The Order alleges that through this conduct Lakin willfully violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Administrative hearings will be scheduled to determine whether the allegations in the Orders are true, and to afford Lakin an opportunity to establish any defenses to the allegations. The proceedings will also determine whether Lakin should be ordered to cease and desist from committing or causing violations of and any future violations of the federal securities laws, and to determine whether remedial action, including but not limited to, orders requiring Lakin to make an accounting and pay disgorgement, prejudgment interest, and civil penalties, are appropriate and in the public interest.
The Order requires that an Administrative Law Judge issue an initial decision in each proceeding no later than 300 days from the date of service of the Orders Instituting Proceedings, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice.