UNITED STATES OF AMERICA
In the Matter of
JOHN A. BLOUNT, III,
ORDER INSTITUTING PUBLIC
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against John A. Blount, III ("Blount" or "Respondent") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").
In anticipation of the institution of these proceedings, Blount 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 any of the findings contained herein, except as to the jurisdiction of the Commission over him and over the subject matter of these proceedings, and the matters set forth in paragraph III.1. below, and the entry of the injunction set forth in paragraph III.4. below, which are admitted, Blount consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), by the Commission.
Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Section 15(b) of the Exchange Act be, and hereby are, instituted.
On the basis of this Order and the Respondent's Offer, the Commission finds that:
1. At all relevant times, Respondent Blount was associated as an unregistered representative of International Currency Consultants, Inc. ("ICC"), an unregistered broker-dealer.
2. On May 15, 2000, the Commission filed a complaint ("Complaint") in the United States District Court for the Southern District of Florida, SEC v. William S. Cordo, Mitchell S. Davis and John A. Blount, No. 00-08392-CIV-RYSKAMP. Among other things, the Complaint charged Respondent with violations of Sections 5(a), 5(c), 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 15(a)(1) of the Exchange Act and Rule 10b-5 thereunder.
3. The Commission's Complaint alleged, among other things, that between May 1998 and May 1999, Respondent made material misrepresentations and omissions in connection with the offer and sale of unregistered securities, in the form of interests in a foreign currency trading program offered by ICC. Blount's misrepresentations concerned, among other things, the profits and losses in individual accounts, the anticipated and past returns of ICC's investment program, the risk of the investment and the size of ICC's trading operation. The Commission's Complaint also alleged that Blount acted as an unregistered broker-dealer in the sale of ICC securities and received ill-gotten gains in the form of commission payments from his sale of the ICC securities.
4. On November 9, 2000, the Court permanently enjoined Respondent from future violations of Sections 5(a), 5(c), 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange Act and Rule 10b-5 thereunder. Blount consented to the entry of the permanent injunction without admitting or denying the allegations of the Commission's complaint.
On the basis of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in the Respondent's Offer.
ACCORDINGLY, IT IS ORDERED that Blount be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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