SEC Open Meeting Agenda
|Item 1:||Orlando Joseph Jett|
Office: Office of General Counsel
The Commission will hear oral argument on an appeal by Orlando Joseph Jett ("Jett") and the Division of Enforcement (the "Division") from an initial decision of an administrative law judge. Jett was a government bond trader with former registered broker-dealer Kidder Peabody ("Kidder"). The Division alleges that Jett committed fraud in connection with a trading scheme involving U.S. Treasury zero coupon securities by which he booked hundreds of millions of dollars of illusory profits and earned millions of dollars in bonuses.
The law judge dismissed the fraud charges because, although she found Jett's conduct fraudulent, she concluded that the fraud was not committed "in connection with" the purchase or sale of securities. The law judge also found that Jett aided and abetted Kidder's recordkeeping violations caused by the inclusion of the illusory profits in its financial statements. The law judge barred Jett from association with any broker or dealer and ordered him to pay a civil money penalty of $200,000, to disgorge $8.21 million, plus prejudgment interest, and to cease and desist from committing or causing any violations or future violations of the applicable securities laws.
Jett appeals the law judge's findings of recordkeeping violations and contests the judge's findings that he engaged in a scheme to defraud. The Division appeals the law judge's decision with respect to the failure to find violations of the antifraud provisions.
Among the issues likely to be considered are:
For further information, please contact the Office of the Secretary at (202) 942-7070.
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