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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES ACT OF 1933
Release No. 8198 / February 28, 2003

SECURITIES EXCHANGE ACT OF 1934
Release No. 47426 / February 28, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11051


 

 

JASON LeDAY,

 

Respondent.

 


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ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE- AND-DESIST ORDER PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 AND SECTIONS 15(b) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Jason LeDay ("Respondent" or "LeDay").

II.

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, Respondent consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Order"), as set forth below.

III.

On the basis of this Order and Respondent's Offer, the Commission finds that:

1. Since July 2001, LeDay has been employed as a senior vice-president and salesman for La Mesa Geoscience, Inc. ("La Mesa Geoscience"), an oil and gas company based in McKinney, Texas. Previously, from November 2000 to July 2001, LeDay worked as a registered representative with various broker-dealers registered with the Commission. LeDay holds Series 6, Series 63 and Series 7 securities licenses, but is not, and never has been, registered with the Commission as a broker or dealer.

2. La Mesa Geoscience, from January 2000 to June 2002, raised more than $3 million from over 200 investors nationwide through sales of unregistered securities in the form of limited and general partnership interests, fractional undivided interests in oil and gas leases, and debentures, issued by La Mesa Geoscience, La Mesa Group and La Mesa Partners (collectively, "the LaMesa entities").

3. La Mesa Geoscience offered and sold these securities via a general solicitation, specifically, through cold calls to prospective investors identified through the use of purchased lead lists. LeDay was instrumental in effecting various securities transactions, both directly in his capacity as a salesman and indirectly through his supervision of other La Mesa Geoscience salesmen. La Mesa Geoscience paid LeDay a ten percent commission on sales he made and a one percent commission on sales by other salesmen he supervised.

4. As a result of the conduct described above, LeDay willfully violated Sections 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent LeDay's Offer.

Accordingly, it is hereby ORDERED:

A. Pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Respondent LeDay shall cease and desist from committing or causing any violations and any future violations of Sections 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act;

B. Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent LeDay be and hereby is suspended from association with any broker or dealer, for a period of 12 months effective on the second Monday following the entry of this Order; and

C. That Respondent LeDay shall, within 90 days of the entry of this Order, pay a civil money penalty in the amount of $10,000 to the United States Treasury. Such 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) hand-delivered or mailed to the Office of Financial Management, Securities and Exchange Commission, Operations Center, Stop 0-3, 6432 General Green Way, Alexandria, VA 22312; and (D) submitted under cover letter that identifies Jason LeDay as a Respondent in these proceedings, the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Spencer C. Barasch, Associate District Administrator, Division of Enforcement, Securities and Exchange Commission, 801 Cherry Street, Suite 1900, Fort Worth, Texas 76102.

By the Commission.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/33-8198.htm


Modified: 03/04/2003