UNITED STATES OF AMERICA
In the Matter of
GREGORY A. HINKSON,
|ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION|
The Securities and Exchange Commission ("Commission") deems it appropriate 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 Respondent Gregory A. Hinkson ("Respondent").
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 in which the Commission is a party, and without admitting or denying the findings contained herein, except that Respondent admits the entry of the permanent injunction against him referred to in paragraph III.C. below and the jurisdiction of the Commission over him and over the subject matter of this proceeding, Respondent by his Offer of Settlement consents to the entry of this Order Instituting Public Administrative Proceeding, 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.
On the basis of this Order and the Offer submitted by the Respondent, the Commission finds that:
A. Respondent resides in Irvine, California. From July 1997 until June 2000, Respondent was associated as a registered representative with Merrill Lynch, Pierce, Fenner & Smith, Inc. ("Merrill Lynch"), a registered broker-dealer, in Newport Beach, California. Respondent held Series 7, 31, 63 and 65 licenses.
B. On July 11, 2001, Respondent was censured and permanently barred by the New York Stock Exchange ("NYSE") due to his failure to cooperate with the NYSE's request for information and his testimony.
C. On July 25, 2002, the United States District Court for the Central District of California entered a Final Judgment Of Permanent Injunction And Other Relief against Respondent [SEC v. Gregory A. Hinkson, SA CV 02-5576 (DT)(AJWx)(C.D. Cal.)]. The Final Judgment enjoins Respondent from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
D. The Commission's Complaint filed in the action described above alleges, among other things, that from December 1998 to May 2000, while associated with Merrill Lynch, Respondent misappropriated $327,356 from five of his clients' accounts. The Complaint further alleges that from October 1999 to May 2000, while associated with Merrill Lynch, Respondent performed unauthorized trades in one of his client's accounts without the client's authorization. As a result of these unauthorized trades, this client lost in excess of $140,000.
Based on the foregoing, the Commission deems it appropriate in the public interest to accept the Offer submitted by the Respondent and impose the sanction specified in the Offer.
Accordingly, IT IS ORDERED that Respondent be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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