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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.48794 / November 17, 2003

Administrative Proceedings
File No. 3-11339


In the Matter of

THOMAS GREGORY COOK,

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

I.

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 Thomas Gregory Cook ("Cook"), and such proceedings are hereby instituted.

II.

In anticipation of the institution of these proceedings, Cook has submitted an Offer of Settlement ("Offer") that 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 contained herein, except for those contained in Sections III.1 and III.2., which are admitted, Cook consents to the issuance of this Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (the "Order"), the entry of the findings contained herein, and the imposition of the sanction set forth below.

III.

On the basis of this Order and Cook's Offer, the Commission finds the following:

  1. Cook, age 45 and a resident of Haymarket, Virginia, was, from at least December 1990 through March 2002, an associated person of a broker-dealer registered with the Commission pursuant to Section 15(a) of the Exchange Act.
     
  2. Cook is permanently enjoined by a judgment of the United States District Court for the Western District of Virginia, in the action styled Securities and Exchange Commission v. Foglesong, et al., Civil Action No. 5:01CV00104 (W.D. Va., judgment entered on October 28, 2003), from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder.
     
  3. With respect to Cook, the Commission's Complaint in SEC v. Foglesong alleged as follows: From at least early 1997 to June 1998, Cook engaged in several "high yield" investment schemes that raised at least $825,000 from over 30 investors. In the schemes, Cook told investors that their funds would be pooled and used for the trading of bank instruments such as medium-term notes, and that this trading would generate extraordinary profits ranging as high as 1,300%. Cook misrepresented, and omitted material facts regarding, the use of investor funds, the safety of those funds, his own due diligence regarding the investment programs, the expected returns on the investments, and his track record relating to the programs. Ultimately, Cook transferred the bulk of the money he raised to remote third party operators who were supposed to run the programs, but who, instead, misappropriated the money invested with them. By engaging in this activity, Cook committed securities fraud in violation of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and acted as an unregistered broker-dealer in violation of Section 15(a) of the Exchange Act.
     

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Cook and impose the sanctions that are consented to in that Offer.

ACCORDINGLY, IT IS HEREBY ORDERED that Cook be, and hereby is, barred from association with any broker or dealer pursuant to Section 15(b) of the Exchange Act.

Any reapplication for association by Cook will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against Cook, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

By the Commission.

Jonathan G. Katz
Secretary

http://www.sec.gov/litigation/admin/34-48794.htm


Modified: 11/18/2003