UNITED STATES OF AMERICA
|In the Matter of
|ORDER INSTITUTING PROCEEDINGS
MAKING FINDINGS AND IMPOSING
IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public proceedings be, and hereby are, instituted pursuant to Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 ("Advisers Act) against Jeffrey Brommer ("Brommer").
In anticipation of the institution of these proceedings, Brommer has submitted an Offer of Settlement ("Offer") to the Commission, which the Commission has determined to accept. Solely for the purposes of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, prior to a hearing pursuant to the Commission's Rules of Practice, 17 C.F.R. § 201.100 et seq., and, without admitting or denying the findings contained herein, except those contained in paragraphs II.A. and B., and the jurisdiction of the Commission over him and the subject matter of these proceedings, which are admitted, Brommer consents to the issuance of this Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions ("Order"), and to the entry of the findings set forth below.
On the basis of this Order and the Offer submitted by Brommer, the Commission finds that:1
A. Brommer, age 33, of Aurora, Illinois, is registered with the Commission as an investment adviser (File No. 801-45805). He conducts business under the name "Investments 101 Ltd." and publishes an investor newsletter entitled "Market $avvy."
B. On September 29, 1999, a final judgment was entered against Brommer in SEC v. Anita Carlisle, et al., USDC WD/TX (Waco) No. W-98-CA-352. Brommer was permanently enjoined from future violations of Sections 17(a) and 17(b) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act. Brommer was also ordered to pay disgorgement in the amount of $4,830, with prejudgment interest, and a civil money penalty of $5,000. Brommer consented to entry of the final judgment without admitting or denying any violations of the federal securities laws, or any of the allegations set out in the Commission's Complaint, except as to subject matter and in personam jurisdiction.
C. The Commission's Complaint alleges that from February 1998 to July 1998, Brommer fraudulently touted the publicly traded shares of Great White Marine and Recreation, Inc. ("Great White") in newsletters and postings to the Investments 101, Ltd. Internet website, without properly disclosing that he received Great White shares and money as compensation from the company. The Commission's Complaint also alleges that Brommer conducted "scalping" transactions, by selling Great White shares into the over-the-counter market, while at the same time touting the company's shares.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions that are set forth in the Offer submitted by Brommer.
Accordingly, IT IS ORDERED that:
A. Brommer is hereby barred from association with any investment adviser, with the right to apply to the Commission to become so associated after 18 months from the date of entry of this order.
B. Within five days of the entry of this Order, Brommer shall comply with his undertaking to withdraw his registration with the Commission as an investment adviser.
By the Commission.
Jonathan G. Katz
|1||The findings herein are made pursuant to Jeffrey Brommer's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.|
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