SECURITIES ACT OF 1933
Release No. 7713 / August 2, 1999
SECURITIES EXCHANGE ACT OF 1934
Release No. 41691 / August 2, 1999
File No. 3-9955
ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST G. BRADLEY TAYLOR
The Commission instituted administrative and cease-and-desist proceedings against a registered representative, G. Bradley Taylor ("Taylor"), formerly employed by Investors Associates, Inc., in Chicago, charging that he received a bribe in exchange for recommending that customers purchase the stock of First Entertainment, Inc. ("First Entertainment"), a microcap company. Taylor resides in Wheaton, Illinois, and is currently a registered representative associated with Stifel, Nicolaus & Company, Inc. in Chicago, Illinois.
The Commission alleges that in 1995, while recommending that customers purchase First Entertainment stock, Taylor received shares of First Entertainment stock worth almost $60,000 from Morton Lempel ("Lempel"), whom he knew to be affiliated with the company. The Commission further alleges that Taylor failed to disclose to customers the compensation he received from Lempel for soliciting them to buy the stock and indeed tried to conceal the payment by having Lempel transfer the stock to Taylor's mother.
The Commission alleges that Taylor willfully violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. A hearing will be scheduled to determine whether the allegations against Taylor are true, and if so, what, if any, remedial action is appropriate and whether respondent should be ordered to pay disgorgement and/or civil penalties.