UNITED STATES OF AMERICA
In the Matter of
ROGER J. WALSTRA,
|ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against Roger J. Walstra ("Walstra") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act").
In anticipation of the institution of these proceedings, Walstra has submitted an Offer of Settlement ("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 Commission's findings contained herein, except to as the Commission's jurisdiction over him and the subject matter set forth in this Order and to the Commission's findings set forth in Paragraphs III.A. and III.B., which are admitted, Walstra consents to the entry of this Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940 ("Order").
Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Section 15(b) of the Exchange Act and Section 203(f) of the Advisers Act be and hereby are instituted.
On the basis of this Order and Walstra's Offer, the Commission finds that:
A. Walstra, born June 18, 1949, is a resident of Demotte, Indiana, and from June 1997 through June 2000 Walstra was a registered representative of a broker-dealer registered with the Commission. From at least June 1997 through June 2000 Walstra also acted as an investment adviser.
B. In August 2000 Walstra entered a Petition to Enter a Plea of Guilty with the United States Attorneys' Office (plea agreement). On December 13, 2000, in U.S. v. Walstra (Cause No. 2:00 CR 145 JM), the Honorable James T. Moody, United States District Court Judge for the Northern District of Indiana, entered a Judgment in a Criminal Case against Walstra, pursuant to his guilty plea of one count of mail fraud in violation of 18 U.S.C. § 1341. Walstra was sentenced to thirty-three (33) months imprisonment and restitution of $1,064,000. The restitution is in accordance with the total losses of investors as a result of Walstra's fraud.
C. In his plea agreement, Walstra acknowledges that on or about 1982, Walstra opened an investment business named Walstra Financial Services, Inc., which he operated as a sole proprietorship in Demotte, Indiana. The plea agreement states that from approximately 1986 through 2000, Walstra advised certain investors that he would invest their money and pay them interest on their investments at various rates. The plea further states that, rather than making the requested investments, Walstra would use some of the investor funds for personal purposes and to reimburse investors who requested to withdraw their funds. The plea also states that Walstra did not have permission to keep any of the investors' money, nor to use any of the investors' money for personal purposes. According to the findings of the plea, the total outstanding and unreimbursed losses to all investors in Walstra's scheme was approximately $1,064,000.
In light of the foregoing, it is appropriate and in the public interest to impose the sanctions specified in the Offer submitted by Walstra.
Accordingly, IT IS HEREBY ORDERED that Roger J. Walstra be, and hereby is, barred from association with any broker, dealer or investment adviser.
By the Commission.
Jonathan G. Katz
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