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U.S. Securities and Exchange Commission

United States of America
before the
Securities and Exchange Commission

Washington, D.C. 20549

Investment Advisers Act of 1940
Release No. 2098/January 10, 2003

Administrative Proceeding
File No. 3-10996


In the Matter of

GORDON J. ROLLERT


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ORDER MAKING FINDINGS AND IMPOSING SANCTION BY DEFAULT AGAINST GORDON J. ROLLERT

Summary

This Order bars Gordon J. Rollert from association with an investment adviser, based on his conviction for mail fraud and wire fraud.

I. Background

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) in this matter on December 23, 2002, pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act). The OIP alleges that Gordon J. Rollert was associated with investment advisers between 1990 and 2000, and was convicted of mail fraud and wire fraud. Through his attorney, by letter dated January 9, 2003, Rollert affirmatively stated that he would not defend this proceeding.

Rollert is in default within the meaning of 17 C.F.R. § 201.155(a)(2) in that he affirmatively declined to defend this proceeding. Accordingly, the undersigned finds that the allegations in the OIP are true.

II. Findings of Fact

Rollert was convicted of mail fraud and wire fraud, in violation of 18 U.S.C. §§ 1341 and 1343, on December 10, 2002. United States v. Rollert, Cr. No. 01-10031 (RWZ) (D. Mass. Dec. 10, 2002). The wrongdoing that led to his conviction occurred from 1993 through 1998, while he was associated with investment advisers and providing advisory services to a church. Rollert diverted to his own benefit over $265,000 in commissions paid to a broker for the church's trading. To do this, he submitted false invoices to the broker, and falsely described payments as soft dollar payments or commission recapture arrangements.

III. Conclusions of Law

Rollert has been convicted, within ten years of the commencement of this proceeding, of a crime that "involves the purchase or sale of any security," "arises out of the conduct of the business of a[n] investment adviser," and "involves the violation of [18 U.S.C. §§ 1341 and 1343]" within the meaning of Sections 203(e)(2) and 203(f) of the Advisers Act. His unlawful conduct was recurring and egregious.

IV. Sanction

As authorized by Section 203(f) of the Advisers Act, Rollert will be barred from association with any investment adviser. This sanction will serve the public interest and the protection of investors. It accords with Commission precedent and the sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979).

V. ORDER

IT IS ORDERED that GORDON J. ROLLERT IS BARRED from association with any investment adviser.

____________________________
Carol Fox Foelak
Administrative Law Judge

 

http://www.sec.gov/litigation/admin/ia-2098.htm


Modified: 01/10/2003