UNITED STATES OF AMERICA
In the matter of
Jeffrey A. DeVille
|ORDER INSTITUTING ADMINISTRATIVE |
FINDINGS AND IMPOSING REMEDIAL
SANCTIONS PURSUANT TO SECTIONS 15(b)
AND 19(h)OF THE SECURITIES EXCHANGE
ACT of 1934
The Securities and Exchange Commission (the "Commission") deems it in the public interest and for the protection of investors that administrative proceedings be instituted pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") against Jeffrey A. DeVille ("respondent").
In anticipation of the institution of these administrative proceedings, respondent 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 the findings contained herein, except as to the jurisdiction of the Commission over him and the subject matter of these proceedings and the entry of the permanent injunctions as described in paragraph II.D., below, which he admits, respondent consents to the entry of this Order Instituting Administrative Proceedings, Making Findings and Imposing Remedial Sanctions pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Order").
Accordingly, IT IS HEREBY ORDERED that public administrative proceedings be, and hereby are, instituted against respondent pursuant to Sections 15(b) and 19(h) of the Exchange Act.
On the basis of this Order and respondent's Offer, the Commission finds that:1
(A) J. DeVille, age 37 and a resident of Clearwater, Florida, was, from at least September 1996 through December 1997, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.
(B) On September 17, 1998, the Commission filed a Complaint, amended on April 28, 1999 ("Complaint"), in the U.S. District Court for the District of Massachusetts against J. DeVille and others, SEC v. Koontz, et al. (Civil Action No. 98-11904NG), alleging that J. DeVille violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Further, the Complaint alleged that J. DeVille violated Sections 5(a) and 5(c) of the Securities Act by selling unregistered securities and Section 15(a) of the Exchange Act by acting as an unregistered broker-dealer.
(C) Specifically, the Commission alleged that, during the period from September 1997 to the filing of the Commission action in September 1998, J. DeVille promoted and directed a fraudulent bank debenture trading program called Private Pool, sold directly to at least six investors at least $1,000,000 of unregistered securities in Private Pool, and convinced more than five other individuals to market the Private Pool program. In addition, he falsely informed sales agents and investors that investor funds would be invested in a 40-week bank debenture trading program with a 1% per week guaranteed return, that investor funds would be secured by government bonds in a two-to-one ratio, and that investors would receive a security interest in the bonds evidenced by a UCC-1 financing statement filed with the State of New York; and he created and distributed materials falsely describing the purported investment and purported UCC-1 financing statements which bore unauthorized Barclays and State of New York stamps. Moreover, he made lulling statements to investors that their money was safe; and he instructed sales agents and investors to represent falsely to Commission staff that investor funds were loans to a movie company rather than investments in a trading program.
(D) A final judgment of permanent injunction was entered by the United States District Court for the District of Massachusetts against J. DeVille on June 5, 2001. The judgment is based upon J. DeVille's consent, and J. DeVille neither admitted nor denied any of the allegations contained in the Complaint, except as tojurisdiction, which he admitted. The judgment: (i) permanently enjoins J. DeVille from violating Sections 5(a), 5(c) and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Section 15(a) of the Exchange Act; (ii) orders J. DeVille to disgorge $4,629,308, plus prejudgment interest thereon, representing his illegal gains from the conduct alleged, requires surrender of identified assets in partial payment of this amount, and provides that the balance of unpaid disgorgement is waived on the basis of J. DeVille's sworn representations in his Financial Disclosure Statement dated and executed concurrently with the Consent of Jeffrey A. DeVille to the final judgment ("Financial Statement"); and (iii) does not order payment of a civil monetary penalty on the basis of J. DeVille's sworn representations in his Financial Statement.
In view of the foregoing, the Commission deems it in the public interest and for the protection to accept of investors respondent's Offer of Settlement and impose the sanction agreed to in the Offer.
Accordingly, IT IS HEREBY ORDERED that, pursuant to Section 15(b) of the Exchange Act, J. DeVille be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
|1||The findings herein as to respondent are made pursuant to respondent's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.|
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