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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 41911 / September 24, 1999

ADMINISTRATIVE PROCEEDING
File No. 3-10027

ADMINISTRATIVE PROCEEDING INSTITUTED AGAINST JERRY W. ANDERSON AND ROBERT M. KERNS

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.

http://www.sec.gov/litigation/admin/34-41911.htm


Modified: 09/24/1999