UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 42084 / November 1, 1999
File No. 3-10088
In the Matter of : ORDER INSTITUTING PUBLIC ADMINISTRATIVE
: PROCEEDINGS PURSUANT TO SECTIONS 15(b)(6)
LAWRENCE A. PETERSEN, : AND 19(h) OF THE SECURITIES
: EXCHANGE ACT OF 1934, MAKING FINDINGS,
Respondent : AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it
appropriate in the public interest and for the protection of investors to
institute public administrative proceedings pursuant to Sections 15(b)(6) and
19(h) of the Securities Exchange Act of 1934 ("Exchange Act") against
Lawrence A. Petersen ("Petersen").
In anticipation of the institution of these proceedings, Petersen 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. § 201.100 et seq., and, without admitting or
denying the findings contained herein, except as to the entry of the injunction
described below and the jurisdiction of the Commission over him in this matter
as set forth in paragraphs II.A and II.B, which are admitted, Petersen consents
to the institution of public administrative proceedings, and the findings and
remedial sanctions set forth below.
On the basis of this Order and the Offer of Settlement submitted by Petersen,
the Commission finds that:
A. From June 1989 through September 1995, Petersen was associated as a
registered representative with two (2) broker-dealers registered with the
Commission and members of the National Association of Securities Dealers, Inc.
B. On October 26, 1999, Petersen was permanently enjoined from violations of
Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities
Act") and Sections 15(a) and 10(b) of the Exchange Act and Rule 10b-5
promulgated thereunder, by the United States District Court for the Northern
District of Texas (Dallas Division) [SEC v. Michael D. Jenkins, et al.,
3-98CV1892-L]. Petersen consented to the entry of the permanent injunction
without admitting or denying any violation of the federal securities laws, as
alleged in the Commission's Complaint.
C. The Commission's Complaint in SEC v. Michael D. Jenkins, et al.
alleges that Petersen engaged in the offer and sale of securities in the form of
promissory notes issued by Absolute Resource Corporation ("ARC") in
violation of the securities registration, antifraud and broker-dealer
registration provisions of the federal securities laws. According to the
Complaint, between April 1993 and December 1994, Petersen sold approximately
$800,000 in ARC promissory notes, the proceeds of which were purportedly used to
develop a sand mine. The Complaint further alleges that in connection with the
offer and sale of the notes, Petersen made material misrepresentations and
omissions of material fact concerning, among other things, the ownership of the
sand mine, the use of investor funds, and the safety of the investment.
In view of the foregoing, the Commission deems it appropriate in the public
interest and for the protection of investors to impose the sanctions specified
by Petersen in his Offer of Settlement.
Accordingly, IT IS ORDERED that, effective immediately, Lawrence A. Petersen
be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz