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U.S. Securities and Exchange Commission

United States of America
Before the
Securities and Exchange Commission

Securities Exchange Act Of 1934
Release No. 45445 / February 14, 2002

Administrative Proceeding
File No. 3-10700



In the Matter of
 
CRAIG WIGINTON,
 
Respondent.
 
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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") be instituted against Craig Wiginton ("Wiginton" or "Respondent").

II.

In anticipation of the institution of this administrative proceeding, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and, without admitting or denying the findings herein, except that Respondent admits the jurisdiction of the Commission over him and over the subject matter of this proceeding and the entry of a final judgment of permanent injunction against him as set forth in paragraph III.B below, Respondent consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanction ("Order"), and to the entry of the findings and remedial sanction set forth below.

Accordingly, IT IS ORDERED that a proceeding pursuant to Section 15(b) of the Exchange Act be, and hereby is, instituted.

III.

On the basis of this Order and the Respondent's Offer of Settlement, the Commission finds the following1:

  1. Respondent, age 49, resides in Anaheim, California. Respondent worked at Currency Trading International, Inc. ("CTI") as a registered representative from January 1995 until the fall of 1997, when he became sales manager of CTI's Newport Beach, California office, a position he held until CTI closed in the fall of 1998. Wiginton previously held Series 4, 5, 15, and 63 licenses. Wiginton currently works for a commodities firm in Southern California and is licensed by the National Futures Association.
     
  2. On January 18, 2002, a Final Judgment of Permanent Injunction and Other Relief (the "Final Judgment") was entered against Respondent by the United States District Court for the Central District of California, Southern Division, in Securities and Exchange Commission v. Currency Trading International, Inc. et al., Case No. SACV 00-12 AHS (EEx). The Final Judgment permanently enjoins Respondent from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.
     
  3. The Commission's Complaint alleged that Respondent, and registered representatives he supervised, made material misrepresentations and omissions to potential and existing CTI customers in connection with the offer and sale of foreign currency options. Specifically, the Complaint alleged that Respondent defrauded customers by: (1) telling clients he would definitely recoup their investment losses if they sent him more money, (2) telling clients he would double or triple their investments, (3) telling clients who lost money that he was a "senior broker" who could "fix" their account losses and deriding the purported abilities of the clients' previous registered representatives, (4) failing to inform clients and potential clients that foreign currency options are highly speculative and the likelihood of the described potential profits was remote, (5) failing to inform clients and potential clients that nearly all of CTI's clients lost money and that CTI's commissions consumed virtually all gains over time, and (6) failing to inform clients and potential clients that CTI's policy was to refuse to allow clients to direct the activity in their accounts and that CTI's practice was to refuse to return client funds.

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest, to accept the Offer submitted by the Respondent and impose the sanction specified in the Offer.

Accordingly, IT IS HEREBY ORDERED that Respondent be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after three years to the appropriate self-regulatory organization, or if there is none, to the Commission.

By the Commission.

Jonathan G. Katz
Secretary

Endnote

1 The findings herein 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.

 

http://www.sec.gov/litigation/admin/34-45445.htm


Modified: 02/19/2002