UNITED STATES OF AMERICA
In the Matter of
JOHN E. ORIN, JR.,
| ORDER INSTITUTING
TO SECTION 203(f) OF THE
ACT OF 1940, MAKING
FINDINGS AND IMPOSING
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against John E. Orin, Jr. ("Orin").
In anticipation of the institution of these proceedings, Orin has submitted an Offer of Settlement to the Commission which the Commission has determined to accept. Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or in 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 over the subject matter of this proceeding and to the matters set forth in paragraphs II.1., 2. and 5. below and the entry of the injunction and criminal conviction set forth in paragraphs II.4. and 8., which are admitted, Orin consents to entry by the Commission of the findings and remedial sanctions set forth below.
Accordingly, IT IS ORDERED that proceedings against Orin be, and hereby are, instituted.
On the basis of this Order and the Offer of Settlement submitted by Orin, the Commission finds that:
1. During the period 1997 through 2000, Orin was vice president of Cashel Management Co., Inc. ("Cashel"), an investment adviser registered with the Commission.
2. On August 2, 2002, the Commission filed a Complaint in the United States District Court for the Northern District of Ohio against Orin captioned SEC v. Thomas M. Durkin and John E. Orin, Jr., 1:02CV 1505 (N.D. Ohio 2002).
3. The Commission's Complaint alleges that from about 1997 through 2000, Orin engaged in fraudulent practices in the accounts of numerous Cashel customers. The Complaint alleges that Orin's activities included: (1) making material misrepresentations to customers about RxRemedy, Inc. securities; (2) making material misrepresentations to Cashel customers about how their accounts would be managed; and (3) failing to follow customers' directions with regard to transactions in their accounts.
4. On August 19, 2002, in SEC v. Durkin, the Court entered an order enjoining Orin from violating Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], and Sections 206(1) and 206(2) of the Advisers Act [15 U.S.C. § 80b-6(1) and (2)]. Orin, without admitting or denying the allegations in the Complaint, consented to the entry of the order.
5. On January 16, 2002, Orin pled guilty to a criminal information charging him with aiding and abetting wire fraud. United States v. John E. Orin, Jr., Criminal Case No. 01 CR 576 (N.D. Ohio 2002).
6. The criminal information alleged that Orin, while vice president of Cashel, aided and abetted a scheme to defraud Cashel clients by persuading clients to make risky investments in a start-up company while omitting facts about the risks involved in the investments.
7. Orin's criminal conviction arose out of the conduct of the business of an investment adviser because he was charged with a scheme involving the investment of funds from the accounts of an investment adviser's clients and also includes charges of wire fraud in violation of 15 U.S.C. § 1343.
8. Orin's judgment of conviction was entered on June 19, 2002.
In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of Settlement of John E. Orin, Jr. and to impose the sanction specified therein.
Accordingly, IT IS ORDERED that Respondent John E. Orin, Jr. is barred from association with any investment adviser.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
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