UNITED STATES OF AMERICA
|In the Matter of
JOHN G. WRIGHT, JR.,
|ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING PURSUANT TO SECTIONS 15(b)AND 19(h) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest and for the protection of investors that a public administrative proceeding be instituted pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent John G. Wright, Jr. ("Wright" or "Respondent").
Accordingly, IT IS HEREBY ORDERED that said proceeding against Wright be, and hereby is, instituted.
In anticipation of the institution of this proceeding, Wright has submitted an Offer of Settlement ("Offer") to the Commission, which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings herein, except that Wright admits the jurisdiction of the Commission over him and over the subject matter of this proceeding, and the entry of the final judgment against him set forth in Section III.B., Wright consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions ("Order") and to the entry of the findings and sanctions set forth below.
On the basis of this Order and Wright's Offer, the Commission finds that:
A. John G. Wright, Jr. ("Wright") age 52, resides in Sarasota, Florida.
B. On October 5, 2000, pursuant to his consent, a Final Judgment of Permanent Injunction and Other Relief as to Defendant John G. Wright, Jr. ("Judgment") was entered against Wright in the United States District Court. The Judgment permanently enjoined Wright from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act, and Rule 10b-5. The Judgment also required Wright to pay a civil money penalty in the amount of $50,000. SEC v. Jon F. Williams, John G. Wright, Jr., James B. Dean, and Conrado B. Topacio, Case No. C-000594 VRW (N.D. Cal.).
C. The Commission's Complaint in the above action alleged that from approximately 1995 through 1997, Wright and others engaged in a fraudulent scheme to sell securities in the form of stock repurchase agreements. Under the terms of the stock repurchase agreements, stock in one of several start-up companies was sold to an investor with a commitment to repurchase the stock at a higher value later. In connection with the sales of these securities, Wright and others working with him offered and sold securities for the account of others. In connection with such offers and sales, Wright and others working at his direction made misrepresentations and omitted disclosure of material facts concerning the intentions and abilities of the contracting parties, the use of the investors' funds, and the market value of certain underlying securities.
D. In conducting the offer and sale of securities for the account of others, Wright acted as a broker within the meaning of Section 3(a)(4) of the Exchange Act. Wright was neither registered with the Commission as a broker nor associated with a registered broker as required by Section 15(a) of the Exchange Act.
Based on the foregoing, the Commission deems it appropriate in the public interest and for the protection of investors to impose the sanctions specified by Wright in his Offer.
Accordingly, IT IS ORDERED that Respondent Wright be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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