UNITED STATES OF AMERICA
In the Matter of
ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute public administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Mark McDermott ("Respondent").
In anticipation of the institution of this administrative proceeding the Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purposes of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except that he admits the jurisdiction of the Commission over him and over the subject matter of this proceeding and the findings contained in Sections III.A and III.B and the entry of the conviction set forth in Section III.E below, Respondent by his Offer consents to the entry of this Order and the findings and imposition of remedial sanctions set forth below.
Accordingly, IT IS ORDERED that proceedings pursuant to Section 15(b) of the Exchange Act be, and, they hereby are, instituted.
On the basis of this Order and the Offer of Settlement submitted by Respondent, the Commission finds that:
A. At all relevant times, Mark McDermott was a registered representative associated with a registered broker-dealer.
B. On January 14, 1999, Mark McDermott pled guilty to count one of a superceding indictment charging him with conspiracy to commit securities fraud. United States v. Mark McDermott, Criminal Case No. 97-647(04) (D. N.J. 1997).
C. The superceding indictment alleged that Mark McDermott, while employed as the co-branch manager of the Mount Prospect office of L.C. Wegard & Co., Inc. ("Wegard"), a brokerage firm that operated as a boiler room, and as the assistant branch manager of Wegard's Princeton, New Jersey, office and a Wegard regional vice president, participated in a conspiracy to commit securities fraud by inducing unsuspecting investors to purchase speculative high risk securities through the use of fraudulent and deceptive sales practices. Mark McDermott worked as a stockbroker at Wegard from October 1991 through November 1995. The indictment alleged the conspiracy existed from in or about October 1991 to in or about November 1995.
D. Mark McDermott's criminal conviction, which arose out of his conduct as an associated person of a broker-dealer, Wegard, involved fraud in the purchase or sale of securities, the objects of the conspiracy. The facts underlying the conviction included Mark McDermott's concealment of the use of fraudulent sales practices from regulatory authorities.
E. Mark McDermott's judgment of conviction was entered on July 13, 2000.
Based on the foregoing, the Commission deems it appropriate and in the public interest to bar Respondent from association with any broker or dealer pursuant to Section 15(b)(6) of the Exchange Act, as specified by Respondent in his Offer.
Accordingly, IT IS ORDERED that pursuant to Section 15(b)(6) of the Exchange Act Respondent be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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