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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 43560 / November 14, 2000

ADMINISTRATIVE PROCEEDING FILE NO. 3-10362

In the Matter of Dean C. Turner

The Securities and Exchange Commission announced that on October 31, 2000, it instituted public administrative proceedings pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 (Exchange Act) against Dean C. Turner (Turner), formerly a registered representative employed in the Michigan branch office of a registered broker-dealer.

In the Order, the Division of Enforcement alleges that Turner was convicted of two counts of mail fraud for submitting reports to his employer and to the National Association of Securities Dealers that failed to disclose that Turner was engaged in the offer and sale of promissory notes issued by Lease Equities Fund, Inc. (Lease Equities). [U.S. v. Dean C. Turner, Crim. No. 96-80603 (E.D. Mich., May 26, 1998)].

The proceedings are also based on the entry of a Final Judgment and Order of Permanent Injunction by consent against Turner on November 3, 2000. [SEC v. Dean C. Turner, et. al., Civil Action No. 97-74810 (E.D. Mich., September 19, 1997)] which enjoins him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b), 15(a)(1) and 15(c)(1) of the Exchange Act and Rules 10b-5 and 15c1-2 thereunder. In the complaint filed in the injunctive proceeding, the Division alleged that Turner engaged in the fraudulent sale of Lease Equities promissory notes that resulted in customer losses of approximately $10 million. According to the complaint, Turner made materially false and misleading statements concerning the use of investor funds, the source of funds to be repaid to investors, the risks associated with the securities, the collateral for the securities, the returns to be realized and the financial condition of Lease Equities. The complaint further alleges that Turner sold the notes while acting independently from the broker-dealer where he was employed and failed to disclose this fact to his customers. According to the Complaint, Lease Equities raised approximately $13 million from Turner's customers, $10 million of which is still owed to these customers by Lease Equities, which is now in bankruptcy.

On January 20, 2000, Turner was sentenced to 18 months imprisonment and two years of supervised release after his prison term. Turner began serving his term in April 2000.

A hearing before an administrative law judge will be scheduled to determine whether the Division's allegations in the Order are true and what, if any, remedial sanctions are appropriate in the public interest and for the protection of investors against Turner.

http://www.sec.gov/litigation/admin/34-43560.htm

Modified:11/15/2000