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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. 47589 / March 28, 2003

INVESTMENT ADVISERS ACT OF 1940
Release No. 2120 / March 28, 2003

Administrative Proceedings
File No. 3-11077


In the Matter of

Robert L. Bentley,

Respondent.


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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

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted 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") against Robert L. Bentley ("Respondent" or "Bentley").

II.

In anticipation of the institution of these 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 herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent 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"), as set forth below.

III.

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

  1. From at least January 1996 until the Commission filed its complaint on October 23, 2001, Respondent was associated with a registered broker-dealer. From January 1987 until July 1997, Respondent was associated with an investment adviser registered with the Commission. From July 1997 until at least October 23, 2001, Respondent was associated with an investment adviser registered with the State of Pennsylvania.

  2. On December 27, 2002, United States District Court Judge Jay C. Waldman entered an order permanently enjoining and restraining Bentley from violating Section 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Exchange Act, and Rule 10b-5 thereunder. Bentley consented to the entry of the injunction without admitting or denying the allegations of the Commission's complaint.

  3. The Commission's complaint alleged that the defendants claimed to be selling bank-issued, federally insured certificates of deposit ("CDs"), but that the defendants were in fact selling uninsured securities. Although the defendants were using at least some investor funds to buy CDs, the terms of the CDs often varied substantially from those of the securities defendants were selling. The Commission also alleged that, in many cases, investors had to rely on the defendants' ability to attract new investors in order for previous investors to receive repayment of their principal. Accordingly, investors were not buying the low-risk, federally-insured CDs that they were promised. Rather, they were buying higher risk securities issued by defendants, whose business was uninsured, unaudited and unregulated.

III.

In view of the foregoing, the Commission finds that it is in the public interest to impose the sanctions specified in the Offer of Settlement.

Accordingly, IT IS ORDERED that:

Bentley be, pursuant to Section 15(b) of the Exchange Act, and 203(f) of the Advisers Act, barred from associating with any broker, dealer or investment adviser.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-47589.htm


Modified: 02/28/2003