Securities Exchange Act of 1934
Release No. 42158 / November 19, 1999
Administrative Proceeding File No. 3-10105
COMMISSION ISSUES ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 15(b)(6) OF THE SECURITIES EXCHANGE ACT OF 1934 AGAINST KENNETH R. STARNES
The Commission announced that it issued an Order Instituting Public Administrative Proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 against Kenneth R. Starnes.
In the Order, the Division of Enforcement alleges that on August 31, 1999, the United States District Court for the Western District of Washington permanently enjoined Starnes from future violations of Section 17(a) of the Securities Act of 1933 and of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in Securities and Exchange Commission v. United Fire Technology, Inc., et al., C97-1151R. In the underlying injunctive action, the Commission alleged that Starnes, a registered representative, sold United Fire Technology, Inc. ("UFT") common stock to his retail customers. Starnes failed to disclose to these customers that he had received kickbacks from UFT or Beverlee Kamerling, the person who controlled UFT, to solicit and sell UFT common stock to investors.
A hearing will be held before an Administrative Law Judge to determine whether the Division of Enforcement's allegations against Starnes are true, and, if so, to determine what remedial sanctions, if any, are appropriate in the public interest.