UNITED STATES OF AMERICA
|In the Matter of
JON F. WILLIAMS,
|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 Jon F. Williams ("Williams" or "Respondent").
Accordingly, IT IS HEREBY ORDERED that said proceeding against Williams be, and hereby is, instituted.
In anticipation of the institution of this proceeding, Williams 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 Williams admits the jurisdiction of the Commission over him and over the subject matter of this proceeding and the entry of the final judgment of permanent injunction against him set forth in Section III.B., Williams 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 Williams's Offer, the Commission finds that:
A. Williams was the founder of both GSG Financial and Global Strategies Group, Inc. ("Global") and, at all relevant times, controlled both entities. Global was a California corporation registered with the Commission beginning in 1990 as a broker dealer. At all relevant times, Williams held Series 7 and 24 securities licenses issued by the National Association of Securities Dealers.
B. A Final Judgment of Permanent Injunction and Other Relief ("Final Judgment") was entered in the United States District Court for the Northern District of California against Williams on December 8, 2000. The Final Judgment permanently enjoins Williams from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5. SEC v. Jon F. Williams, et al., Case No. C-000594 SC (N.D. Cal.).
C. The Commission's Amended Complaint in the action referenced in Section IV.B. alleges that Williams and others engaged in the fraudulent offer and sale of $2.14 million in high risk, unregistered securities in the form of stock repurchase agreements. In these stock repurchase agreements, Berkshire Venture Partners ("Berkshire") sold stock in one of three start-up companies and agreed to repurchase the stock at a higher price six months later. The stock repurchase agreements were sold through Global. Williams and others made numerous misrepresentations and omissions of material fact in the course of offering and selling the stock repurchase agreements, including misrepresentations that investors would be paid returns of twenty percent or more within six months and misrepresentations and omissions about the use of investor proceeds and the degree of risk associated with the stock repurchase agreements.
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 Williams in his Offer.
Accordingly, IT IS ORDERED that Respondent Williams be, and hereby is, barred from association with any broker or dealer.By the Commission.
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