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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. 50884 / December 20, 2004

Admin. Proc. File No. 3-11778


In the Matter of

SCOTT HAMILTON,

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 Scott Hamilton ("Hamilton").

II.

In anticipation of the institution of these proceedings, Hamilton 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 as to the Commission's jurisdiction over him and the subject matter of these proceedings and the findings contained in Section III.3 herein, which are admitted, Hamilton consents to the entry of this Order Instituting Administrative Proceedings, Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order"), as set forth below.

III.

On the basis of this Order and Hamilton's Offer, the Commission finds the following:1

  1. Hamilton, age 72, is a resident of San Francisco, California. Hamilton acted as an unregistered broker in a prime bank investment scheme and misrepresented to investors that he is a financial expert and has a Ph.D. in international finance.
     
  2. On June 5, 2003, the Commission filed a civil action in the United States District Court for the Central District of California charging Hamilton and others with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), and Exchange Act Sections 10(b) and 15(a)(1), and Exchange Act Rule 10b-5. Securities and Exchange Commission v. Mary Patten, et al., Civil Action No. EDCV 03-8619 DSF (JTLx) (C.D. Cal.) The Commission's complaint alleged, among other things, that from approximately January 1999 through September 1999, Hamilton and the other defendants raised at least $6.7 million in a prime bank investment fraud scheme.
     
  3. On November 29, 2004, the Court entered a final judgment against Hamilton that, among other things, enjoined him from violating Securities Act Sections 5(a), 5(c) and 17(a), Exchange Act Sections 10(b) and 15(a)(1) and Exchange Act Rule 10b-5.
     

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Hamilton's Offer.

Accordingly, it is hereby ORDERED:

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

Any reapplication for association by Hamilton 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 Hamilton, 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


Endnotes


http://www.sec.gov/litigation/admin/34-50884.htm


Modified: 12/20/2004