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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. 50568 / October 20, 2004

INVESTMENT ADVISERS ACT OF 1940
Release No. 2315 / October 20, 2004

Admin. Proc. File No. 3-11715


In the Matter of

LARRY WAYNE CHERRY,

Respondent.



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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, 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") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Larry Wayne Cherry ("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.4 and III.5 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 and Section 203(f) of the Investment Advisers Act of 1940, 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. Respondent, 58 years old, currently resides in Madison, Tennessee.

2. From approximately June 1985 through February 1996, Respondent was associated with two broker-dealers registered with the Commission. During the relevant period, Respondent acted as a broker.

3. From approximately May 1996 through September 2001, Respondent was associated with an investment adviser registered with the Commission.

4. On February 13, 2004, Respondent was convicted of a felony, pursuant to a plea agreement, of one count of failure to register as a broker-dealer of securities in violation of Tennessee Code Annotated, Section 48-2-109 before the Criminal Court of Davidson County, Tennessee, in State of Tennessee v. Larry Wayne Cherry, Case. No. 2004-I-149. Respondent was sentenced to three years incarceration (which was suspended), three years of probation, and during that time must not transact securities business as a broker-dealer or an agent, must not act as an investment adviser, and must not engage in any other sale or brokering of a security.

5. The criminal information to which Respondent pled guilty (nolo contendere) alleged that, from August 1, 2000 to June 6, 2001, Respondent unlawfully, willfully, and feloniously transacted securities business as a broker-dealer by selling stock in various closely held corporations without being registered under the Tennessee Securities Act.

IV.

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

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act that Respondent Cherry be, and hereby is barred from association with any broker or dealer or investment adviser.

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.

Jonathan G. Katz
Secretary


http://www.sec.gov/litigation/admin/34-50568.htm


Modified: 10/20/2004