SECURITIES EXCHANGE ACT OF 1934
Release No. 50011 / July 14, 2004
ADMINISTRATIVE PROCEEDING
File No. 3-11546
In the Matter of Frederic A. Gladle, Respondent. |
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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS |
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") against Frederic A. Gladle ("Respondent" or "Gladle").
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 over the subject matter of the proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
III.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. Gladle has variously held Series 7, 22, 24, and 63 securities licenses from 1983 through at least 1999. From November 1985 through April 1993, Gladle was associated with various registered broker-dealers. From January 1995 to September 1995, Gladle was associated with TrendsGroup International, Inc. ("TrendsGroup"), an unregistered broker-dealer.
2. On July 12, 2004, a final judgment was entered by consent against Gladle, permanently enjoining him from violating Sections 5 and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, in the civil action entitled Securities and Exchange Commission v. Internet Telecommunications Albany System SMR, et al., Civil Action No. 1:99CV00539 (CKK), in the United States District Court for the District of Columbia.
3. The Commission's complaint alleged that Gladle, his controlled company, TrendsGroup, and other co-defendants violated various registration and antifraud provisions of the federal securities laws in connection with the nationwide sale of unregistered securities issued by three general partnerships organized to develop specialized mobile radio systems ("SMR Systems") in New York, Nevada and Alaska. The complaint further alleged that during the period of his involvement in this matter, Gladle and TrendsGroup functioned as unregistered brokers in selling the securities. Furthermore, the complaint alleged that TrendsGroup and Gladle used high pressure, "boiler room" sales tactics in marketing the partnerships and materially misrepresented the nature of the SMR Systems' operation, their projected costs of development and the projected returns in telephone conversations with potential investors and in documents sent to potential and actual investors.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Gladle's Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Gladle be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission.
Any reapplication for association by the Respondent 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 the Respondent, 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.
Secretary