In the Matter of John L. Shipley
Admin. Proc. File No. 3-17391
On August 16, 2016, the Commission instituted and simultaneously settled proceedings against John L. Shipley (“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 October 2012 through late 2013, the Respondent received $366,678.00 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 the Respondent to pay a total of $390,000.00, consisting of disgorgement of $366,678.00, prejudgment interest of $15,822.00, and a civil money penalty of $7,500.00. 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.
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. 34-78582.
As ordered, the Respondent paid a total of $390,000.00, which was transferred to the Receiver on November 7, 2016.