Securities and Exchange Commission
Litigation Release No. 17989 / February 19, 2003
Securities and Exchange Commission v. Norman P. Rounds, Case No. 03-MK-0303 (CBS) (D. Colo.)
The Securities and Exchange Commission (the "Commission") announced today that it filed a civil action in the United States District Court for the District of Colorado against Norman P. Rounds, a resident of Greenwood Village, Colorado, for acting as an unregistered broker or dealer during 2000 and 2001. In 1996, the Commission barred Rounds from associating with a broker or dealer with a right to reapply for such association after one year. In its complaint, the Commission alleges that Rounds participated in the offer and sale of partnership interests in natural gas well drilling programs by directly soliciting individual investors, promoting the investment programs to brokers, and arranging informational meetings for potential investors. According to the complaint, Rounds received almost $900,000 for his participation in the sale of the investments.
The complaint alleges that Rounds violated Section 15(a)(1) of the Securities Exchange Act of 1934 ("Exchange Act"). Because Rounds had never reapplied or been granted the right to associate with a broker or dealer following the expiration of the Commission's one year bar order against him, the complaint alleges that his conduct also violated the bar. The Commission seeks a final judgment enjoining Rounds from further violations of Section 15(a)(1) of the Exchange Act, an order enforcing the Commission's prior bar, civil monetary penalties, and disgorgement of the funds Rounds received in connection with his illegal activities.
SEC Complaint in this matter