SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 41911 / September 24, 1999
File No. 3-10027
ADMINISTRATIVE PROCEEDING INSTITUTED AGAINST JERRY W. ANDERSON AND ROBERT M.
The Securities and Exchange Commission ("Commission") announced
that it issued an Order Instituting Public Administrative Proceeding Pursuant To
Sections 15(b) And 19(h) Of The Securities Exchange Act of 1934
("Order") against Jerry W. Anderson ("Anderson") and Robert
M. Kerns ("Kerns"), the co-owners of the parent company of a
Commission registered broker-dealer, Amerivest Financial Group, Inc., of which
Kerns was president.
The Commission's Order alleges that Anderson and Kerns were enjoined by
United States District Judge Christina A. Snyder of the Central District of
California on April 2, 1999 from future violations of the antifraud provisions
of 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. Judge Snyder found
that Anderson and Kerns had engaged in a fraudulent scheme from 1992 until
September 1997 in which they operated a Ponzi-like scheme involving oil and gas
joint ventures and limited partnerships. This Ponzi-like scheme raised over $16
million from over 500 investors nationwide, many of whom were elderly.
A hearing will be scheduled before an administrative law judge to consider
evidence regarding the above allegations and to afford Anderson and Kerns an
opportunity to present any defense. The purpose of the hearing is to determine
whether the allegations are true and whether any remedial action is appropriate
in the public interest and for the protection of investors.