Securities Exchange Act of 1934
Release No. 51222 / February 17, 2005
Admin. Proc. File No. 3-11774
In the Matter of ULYSSES "THOMAS" WARE, |
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ORDER DENYING MOTION TO LIFT TEMPORARY SUSPENSION AND DIRECTING HEARING |
On December 16, 2004, we instituted proceedings against Ulysses "Thomas" Ware pursuant to Rule 102(e)(3) of this Commission's Rules of Practice and temporarily suspended him from appearing or practicing before this Commission.1 Ware has filed a petition, pursuant to Rule 102(e)(3)(ii), seeking to lift his temporary suspension.
On October 22, 2004, the District Court entered a permanent injunction against Ware in an action brought by this Commission. The order permanently enjoined Ware from violating, Sections 5(a), 5(c), 17(a) and 17(b) of the Securities Act of 19332 and Sections 10(b) and 13(d) of the Securities Exchange Act of 19343 and Exchange Act Rules 10b-5 and 13d-1.4
The District Court found, among other things, that Ware had failed to answer the Commission's complaint in the proceeding and deemed the allegations in the complaint as to Ware's conduct and activities admitted.5
Ware now requests that the temporary suspension be lifted.6 He argues that the Commission did not have jurisdiction to enter the temporary suspension because the injunction is not a final order.7 In support of his petition, Ware attaches a motion he filed with the Court to set aside the default judgment.8
Rule 102(e)(3) permits the Commission to suspend any attorney or other professional or expert who has been permanently enjoined from violating or aiding and abetting the violation of the Federal securities laws or found to have violated or aided and abetted the violation of the Federal securities laws. The findings of the District Court, which Ware is precluded from contesting in this proceeding, as well as the injunction issued against him justify the continuance of his suspension until it can be determined what, if any, action may be appropriate to protect this Commission's processes.9 As provided in Rule 102(e)(3)(iii), we will set the matter down for a public hearing.
Accordingly, IT IS ORDERED that the petition of Ulysses "Thomas" Ware to lift our order of temporary suspension be, and it hereby is, denied; and it is further
ORDERED that this proceeding be set down for public hearing before an administrative law judge in accordance with Rule 110 of our Rules of Practice. As specified in Rule 102(e)(3)(iii), the hearings in this matter shall be expedited in accordance with Rule 500. Therefore, it is ORDERED that the administrative law judge shall issue an initial decision no later than 120 days from the date of service of this Order.
By the Commission.
Jonathan G. Katz
Secretary
Endnotes
(I) The Commission, with due regard to the public interest and without preliminary hearing, may, by order, temporarily suspend from appearing or practicing before it any . . . attorney . . . who has been by name:
(A) Permanently enjoined by any court of competent jurisdiction, by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder; or
(B) Found by any court of competent jurisdiction in an action brought by the Commission to which he or she is a party or found by the Commission in any administrative proceeding to which he or she is a party to have violated (unless the violation was found not to have been willful) or aided and abetted the violation of any provision of the Federal securities laws or of the rules and regulations thereunder.