UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 37286 / June 7, 1996 ADMINISTRATIVE PROCEEDING File No. 3-9021 ------------------------- : In the Matter of : ORDER INSTITUTING PROCEEDINGS : PURSUANT TO SECTION 15(b) Benjamin Rex Moses : OF THE SECURITIES EXCHANGE : ACT OF 1934, MAKING FINDINGS AND Respondent. : IMPOSING REMEDIAL SANCTIONS : : ------------------------- I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute public administrative proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Benjamin Rex Moses ("Moses"). In anticipation of the institution of these proceedings, Moses has submitted an Offer of Settlement ("Offer") to the Commission which the Commission has determined to accept. Solely for the purposes of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, prior to a hearing pursuant to the Commission's Rules of Practice, 17 C.F.R.  201.1 et seq., and, without admitting or denying the findings contained herein, except for the entry of the permanent injunction set forth in paragraph II.C., and the jurisdiction of the Commission over him in this matter, which is admitted, Moses consents to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below. Accordingly, IT IS ORDERED that proceedings pursuant to Sections 15(b) of the Exchange Act be, and hereby are, instituted. ==========================================START OF PAGE 2====== II. On the basis of this Order Instituting Proceedings Pursuant to Sections 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order") and the Offer submitted by Moses, the Commission finds that: -[1]- A. H. D. Vest Investment Securities, Inc. ("Vest"), has been registered as a broker-dealer with the Commission since 1983. B. Moses was a registered representative of Vest from July 1991 through February 1994. C. On , 1996, Moses was permanently enjoined from violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, by the United States District Court for the Southern District of Texas (Houston Division) [SEC v. Benjamin Rex Moses, H-95-4664]. Moses consented to the imposition of the permanent injunction without admitting or denying any violation of the federal securities laws, as alleged in the Commission's Complaint. D. The Commission's Complaint in SEC v. Benjamin Rex Moses alleges, among other things: (1) that Moses organized an investment club named Physician's Investment Club ("PIC") over which he had discretionary authority and sought to open a PIC trading account at Vest, however, Vest rejected the application as being prohibited by firm policy; (2) that Moses solicited a PIC investor to falsely serve as attorney-in-fact on the account's documentation papers while he himself maintained control over the account's trading; (3) that Moses falsely represented to investors that they would realize a 20% return on their investment and lied to investors by telling them that the account was performing positively, when, in fact, it was not; and (4) that Moses falsely represented to investors that the monthly checks they received were derived from interest income generated by their principal investment when, in fact, the account incurred trading losses of more than half the amount invested. III. In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified by Moses in his Offer. ---------FOOTNOTES---------- -[1]- The findings herein are made pursuant to Moses' Offer of Settlement and are not binding on any other person or entity named as a respondent in this or any other proceeding. ==========================================START OF PAGE 3====== Accordingly, IT IS ORDERED that Benjamin Rex Moses, be, and hereby is, barred from association with any broker, dealer, investment adviser, investment company or municipal securities dealer. By the Commission. Jonathan G. Katz Secretary