Municipal Advisor and Solicitors Charged with Registration Violations
July 16, 2019
File Nos. 3-19253; 19254; 19255
The Securities and Exchange Commission today announced settled charges against Dale Scott & Company, Inc. ("DSC"), a registered municipal advisor based in San Francisco, as well as Wayne Oetken ("Oetken") and School Services of California, Inc. ("School Services"), who acted as unregistered solicitor municipal advisors in soliciting new municipal securities clients on behalf of DSC.
The SEC's Orders found that DSC engaged Oetken and School Services to solicit municipal advisory business from October 2011 to March 2016 and June 2014 to March 2016, respectively. DSC sought help from Oetken and School Services in proposing new municipal bond sales to prospective issuers. According to the Orders, both Oetken and School Services had specific contacts or client relationships with school districts around California enabling them to open doors for DSC to pitch its municipal advisory services. Oetken and School Services were paid either a monthly retainer or a percentage of the fees DSC received from its clients after a successful bond transaction. DSC provided Oetken and School Services lists of potential clients to be targeted with solicitations and directed them concerning how and when to make contact with potential clients and provide background information that would be helpful in the solicitations. At no time were Oetken or School Services registered with the SEC as a solicitor municipal advisor.
The SEC's Orders find that Oetken and School Services violated Section 15B(a)(1)(B) of the Securities Exchange Act of 1934, which requires registration of solicitor municipal advisors, and that DSC was a cause of those violations. Oetken and School Services each agreed to pay penalties of $10,000, and DSC has agreed to pay a penalty of $25,000.
The SEC's investigation was conducted by Brian Knight and supervised by Monique Winkler of the Enforcement Division's Public Finance Abuse Unit and San Francisco Regional Office.