In the Matter of Curtis A. Peterson
Admin. Proc. File No. 3-17391
On August 23, 2016, the Commission instituted and partially settled proceedings against Curtis A. Peterson (“Respondent”) arising from his participation as an unregistered broker-dealer in the offer and sale of securities by interstate commerce (the “Order”). In the Order, the Commission found that the Respondent acted as an unregistered sales agent of JCS Enterprises, Inc. (“JCS”) and T.B.T.I., Inc. (“TBTI”) by having offered and sold JCS’s and TBTI’s investment contracts in JCS’s Virtual Concierge program, and the Respondent earned transaction-based compensation from each sale. From approximately March 2013 through December 2013, the Respondent, individually and/or through a company under his control received $584,550.00 in transaction-based compensation from JCS and TBTI in exchange for soliciting and securing investors through the use of telephone and/or email. The Commission found that the Respondent willfully violated Section 15(a)(1) of the Securities Exchange Act of 1934. The Commission ordered that the Respondent pay a civil money penalty of $7,500.00. Pursuant to the Order, the Respondent agreed to additional proceedings to determine whether it is appropriate to order disgorgement of ill-gotten gains, and, if so, the amount of the disgorgement. If disgorgement is ordered, prejudgment interest will be calculated thereon from March 19, 2013 through April 7, 2014. The Commission also created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for all funds received pursuant to the Order, including any disgorgement and prejudgment interest amounts that may be ordered as the result of the additional proceedings agreed upon in the Order.
The Commission further ordered that all funds paid by the Respondent pursuant to the Order be transferred to the Receiver, James D. Sallah, appointed in the related Commission action, SEC v. JCS Enterprises, Inc., et al., Case No. 14-80468-CV-DMM (S.D. Fla.) for distribution to injured investors in accordance with a distribution plan to be approved by the court in that litigation. See the Commission’s order: Release No. 34-78639.
On October 6, 2016, the Administrative Law Judge issued a Scheduling Order requiring the Division of Enforcement’s (“Division”) motion for summary disposition to be filed by October 21, 2016; the Respondent’s opposition is due by November 21, 2016; and the Division’s reply is due by December 7, 2016.
For further information regarding these funds, please contact James D. Sallah, Esq., the Receiver for JCS and T.B.T.I. in the matter of JCS Enterprises, Inc., et al., Case No. 14-80468-CV-DMM (S.D. Fla.).
Receiver:James D. Sallah, Esq.
One Boca Place
Sallah Astarita & Cox LLC
2255 Glades Road, Suite 300E
Boca Raton, FL 33431
Telephone: (561) 989-9080