Cristan Kinnard Blackman and Charles Ray Roberts, Jr.
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 44204 / April 19, 2001
ADMINISTRATIVE PROCEEDING
File No. 3-10459
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In the Matter of CRISTAN KINNARD BLACKMAN and Respondents.
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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTIONS 15 AND 19(h) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS |
I.
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against Cristan Kinnard Blackman ("Blackman") and Charles Ray Roberts, Jr. ("Roberts"), pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act").
II.
In anticipation of the institution of these proceedings, Blackman and Roberts have submitted Offers of Settlement (the "Offers"), 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 that Blackman and Roberts admit the jurisdiction of the Commission over them and over the subject matter of these proceedings and the entry of the Final Judgment of Permanent Injunction referenced in Paragraph III.D., Blackman and Roberts consent to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Sections 15(b) and 19(h) 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 Sections 15(b) and 19(h) of the Exchange Act be, and hereby are, instituted.
III.
On the basis of this Order and the Offers submitted by Respondents Blackman and Roberts, the Commission finds that:
A. Cristan Kinnard Blackman, age 39, is a resident of Hendersonville, Tennessee, and, at all relevant times, was a registered representative of Morgan Keegan & Company ("Morgan Keegan"), a broker-dealer registered with the Commission.
B. Charles Ray Roberts, Jr., age 38, is a resident of Hendersonville, Tennessee, and, at all relevant times, was a registered representative of Morgan Keegan, a broker-dealer registered with the Commission.
C. On November 16, 1999, the Commission filed a complaint in the United States District Court for the Middle District of Tennessee captioned S.E.C. v. Cristan Kinnard Blackman, et al., Civil Action No. 3-99-1072 (M.D. Tenn.) alleging, among other things, that Blackman and Roberts engaged in insider trading in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in connection with transactions in the securities of Mid Ocean Limited ("Mid Ocean").
D. On March 16, 2001 and March 26, 2001, Final Judgments of Permanent Injunction and Other Relief were entered against Blackman and Roberts, respectively. The Final Judgments permanently enjoined Blackman and Roberts from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Blackman and Roberts consented to the entry of the Final Judgments without admitting or denying the allegations contained in the Commission's Complaint.
IV.
On the basis of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in the Offers submitted by Respondents Blackman and Roberts.
ACCORDINGLY, IT IS ORDERED that:
1. Blackman be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
2. Roberts be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
By the Commission.
Jonathan G. Katz
Secretary