UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 40480 / September 25, 1998 ADMINISTRATIVE PROCEEDING File No. 3-9726 - - - - - - - - - - - - - - - x : : ORDER INSTITUTING PUBLIC : PROCEEDINGS PURSUANT TO In the Matter of : SECTIONS 15(b) AND 19(h) OF : THE SECURITIES EXCHANGE ACT OF TED C. BEATTIE and : 1934, MAKING FINDINGS, AND LINDA BEATTIE, : IMPOSING REMEDIAL SANCTIONS : : : Respondents. : - - - - - - - - - - - - - - - x I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against Ted C. Beattie a.k.a. Edward Cole Beattie ("T. Beattie") and Linda Beattie a.k.a. Linda Kelsey ("L. Beattie") pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act"). II. In anticipation of the institution of these administrative proceedings, T. Beattie and L. Beattie have submitted Offers of Settlement, which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except as to jurisdiction, which T. Beattie and L. Beattie both admit, and the entry of the convictions set forth in Paragraphs III.C. and III.D., which T. Beattie admits, and IV.B., which L. Beattie admits, T. Beattie and L. Beattie consent to the issuance of this Order Instituting Public Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"). Accordingly, IT IS ORDERED that administrative proceedings pursuant to Sections 15(b) and 19(h) of the Exchange Act be, and hereby are, instituted against T. Beattie and L. Beattie. III. On the basis of this Order and T. Beattie's Offer of Settlement, the Commission makes the following findings: . From July 1991 to October 1995, T. Beattie was a registered representative at Edward D. Jones & Co. ("Jones"), a registered broker-dealer. . From October 1995 to June 1996, T. Beattie was a registered representative at Thomas Securities, Inc. ("Thomas"), a registered broker-dealer. . On December 18, 1996, in the Erie County (New York) Court, based upon a plea of guilty entered on September 5, 1996, T. Beattie was convicted of one count of grand larceny in the second degree, N.Y. Penal Law  155.40-1 (McKinney 1997), and two counts of grand larceny in the third degree, N.Y. Penal Law  155.35 (McKinney 1997). The Information underlying the conviction charged, among other things, that between August 5, 1993 and January 19, 1996, T. Beattie, being intentionally aided by another, stole funds from Jones brokerage accounts for which T. Beattie was the registered representative. T. Beattie was sentenced to six months in prison and five years of probation. T. Beattie was ordered to pay $484,087.33 in restitution. The restitution obligation was joint and several with L. Beattie. The People of the State of New York v. Ted C. Beattie, 96-0613, County Court of the State of New York, Erie County. . On April 9, 1997, in a second proceeding in the Erie County (New York) Court, based upon a plea of guilty entered on March 26, 1997, T. Beattie was convicted of one count of grand larceny in the fourth degree, N.Y. Penal Law  155.30-1 (McKinney 1997). The Information underlying T. Beattie's second conviction charged, among other things, that on or about March 1, 1996, T. Beattie stole funds from a Thomas brokerage account for which T. Beattie was the registered representative. T. Beattie was sentenced to five years of probation to run concurrent with the sentence he was already serving and ordered to pay $25,000 in restitution. The People of the State of New York v. Ted C. Beattie a/k/a Edward Cole Beattie, 96-2400, County Court of the State of New York, County of Erie. IV. On the basis of this Order and L. Beattie's Offer of Settlement, the Commission makes the following findings: A. From July 1993 to December 1995, L. Beattie was associated with Jones, a registered broker-dealer. L. Beattie was a secretary for T. Beattie. B. On December 18, 1996, in the Erie County (New York) Court, based upon a plea of guilty entered on September 5, 1996, L. Beattie was convicted of one count of grand larceny in the second degree, N.Y. Penal Law  155.40-1 (McKinney 1997), and two counts of grand larceny in the third degree, N.Y. Penal Law  155.35 (McKinney 1997). The Information underlying the conviction charged, among other things, that between August 5, 1993 and January 19, 1996, L. Beattie stole funds from Jones brokerage accounts. L. Beattie was sentenced to five years of probation and ordered to pay $484,087.33 in restitution. The restitution obligation was joint and several with T. Beattie. The People of the State of New York v. Ted C. Beattie, 96-0613, County Court of the State of New York, Erie County. V. Based on the foregoing, it is in the public interest to impose the sanctions specified in the Offers. Accordingly, IT IS HEREBY ORDERED, effective immediately, that Respondents T. Beattie and L. Beattie be, and hereby are, barred from association with any broker, dealer, investment adviser, investment company, or municipal securities dealer; provided, however, that this Order will be vacated by the Commission with respect to Respondent L. Beattie, upon application by L. Beattie, if an order is entered by the New York Appellate Division in the case captioned Ted C. Beattie v. The People of the State of New York, 96-0613, reversing and\or remanding for trial the conviction of L. Beattie in the case captioned The People of the State of New York v. Ted. C. Beattie, 96-0613, County Court of the State of New York, Erie County. By the Commission. Jonathan G. Katz Secretary SERVICE LIST Rule 141 of the Commission's Rules of Practice provides that the Secretary, or another duly authorized officer of the Commission, shall serve a copy of an order instituting public proceedings, making findings, and imposing remedial sanctions on each person named as a party in the order and his or her legal agent. The attached Order Instituting Public Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions against Ted C. Beattie and Linda Beattie has been sent to the following parties and other persons entitled to notice: Honorable Brenda P. Murray Chief Administrative Law Judge Securities and Exchange Commission 450 Fifth Street, N.W., Stop 11-6 Washington, D.C. 20549 Stop 11-6 Securities and Exchange Commission Division of Enforcement 450 Fifth Street, N.W., Stop 8-9 Washington, D.C. 20549 Attention: Jill M. Peterson, Esq. Securities and Exchange Commission Northeast Regional Office 7 World Trade Center - 13th Floor New York, New York 10048 Attention: Rebecca A. Buder, Esq. Mr. Ted C. Beattie 98 Carla Lane West Seneca, New York 14224 Ms. Linda Beattie 98 Carla Lane West Seneca, New York 14224