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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities and Exchange Act of 1934
Release No. 50256 / August 25, 2004

Administrative Proceeding
File No. 3-11606


In the Matter of

ANDREW SEARS,

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 Andrew Sears ("Sears" or "Respondent").

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.C 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.

FINDINGS

On the basis of this Order and the Offer submitted by Sears, the Commission finds that:

A. From in or about April 1995 through April 1997, Sears was a registered representative associated with Delta Equity Services Corp., a broker-dealer registered with the Commission.

B. Golf Ventures, Inc. ("GVI") was a corporation organized under the laws of Utah with its principal place of business in Salt Lake City, Utah. At the time relevant to these proceedings, GVI's securities were registered pursuant to Section 12(g) of the Exchange Act, 14 U.S.C. 781(g), and its shares were publicly traded on the Over-the-Counter Bulletin Board. In July 1999, GVI filed for bankruptcy and subsequently ceased all operations.

C. On December 18, 1997, the Commission filed a complaint ("Complaint") against Sears and others (SEC v. George Badger, et al., Case No. 2:97-CV-0963K (D. Utah)) alleging, among other things, that from approximately August 1996 through September 1996, Sears engaged in a fraudulent scheme to manipulate the market for GVI securities by accepting undisclosed bribe payments from a GVI representative in exchange for Sears' promise to sell GVI securities to his retail customers. On November 26, 2002, the United States District Court for the District of Utah entered a Final Consent Judgment of Permanent Injunction and Other Relief as to Defendant Andrew Sears ("Final Judgment") that, among other things, permanently enjoins Sears from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Sears consented to the entry of the Final Judgment without admitting or denying the allegations in the Complaint, except as to jurisdiction.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Sears' Offer.

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Sears be, and hereby is barred from association with any broker or dealer.

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.

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

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-50256.htm


Modified: 08/25/2004