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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. 48329 / August 13, 2003

INVESTMENT ADVISERS ACT OF 1940
Release No. 2157 / August 13, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11213

ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST WENDELL D. BELDEN

The Commission issued an order instituting proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Wendell D. Belden. In the order, the Division of Enforcement alleges that on November 21, 2002, Belden was permanently enjoined from violating and/or aiding and abetting violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rules 10b-5 and 15b3-1 thereunder, and Sections 204, 206(1), 206(2), 206(4) and 207 of the Advisers Act and Rules 204-1(a)(2), 206(4)-4(a)(2), and 206(4)-4(c) thereunder, by the United States District Court for the Northern District of Oklahoma [SEC v. Southmark Advisory, Inc. f/k/a Southmark of Tulsa, Inc., Southmark, Inc., and Wendell D. Belden, 02-CV-830-E]. The Commission's Complaint in SEC v. Southmark Advisory, Inc. et al. alleged that from 1996 to 2002, Belden used Southmark Advisory, Inc. and Southmark, Inc. to defraud his predominantly elderly or retired clients by misleading them about their investment options and the security of their invested principal; and by investing their money in a manner calculated to enrich himself at their expense. By way of this fraudulent scheme, Belden and others sold mutual fund shares worth at least $82,801,550, victimized at least 400 investors, and fraudulently earned at least $5 million in management fees and brokerage commissions.

A hearing before an administrative law judge will be scheduled to determine whether the allegations in the order are true, and to determine what remedial action, if any, is appropriate in the public interest.

 

http://www.sec.gov/litigation/admin/34-48329.htm


Modified: 08/13/2003