UNITED STATES OF AMERICA
In the Matter of
Robert N. Young,
ORDER INSTITUTING PUBLIC
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute public administrative proceedings against Robert N. Young ("Young") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act").
In anticipation of the institution of the administrative proceedings, Young has submitted an Offer of Settlement ("Offer"), which the Commission has determined is in the public interest to accept. Young admits the jurisdiction of the Commission over him and the subject matter of these proceedings. 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, prior to a hearing and without admitting or denying the findings set forth herein, except as to the matters set forth in Section IV.A. and IV.B. below, which are admitted, Young consents to the issuance of this Order Instituting Public Administrative Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order"), and to the entry of the findings and to the imposition of the remedial sanctions as set forth below.
Accordingly, IT IS ORDERED that said proceedings be, and hereby are, instituted.
On the basis of this Order and the Offer, the Commission finds that:
A. Young, who maintained an office in Williamsville, New York, was registered as an investment adviser pursuant to Section 203(c) of the Advisers Act from March 1989 to January 31, 2000, when the Commission cancelled Young's registration pursuant to Section 203(h) of the Advisers Act, and was a registered representative of certain registered broker-dealers from December 1977 to September 1995 and from November 1995 to July 1996.
B. On January 3, 2001, Young was permanently enjoined by consent by the United States District Court for the Western District of New York in SEC v. Robert N. Young, 00 Cv. 1039S(M)(W.D.N.Y. December 18, 2000), from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 207 of the Advisers Act.
C. The Commission's complaint in the above referenced action alleges, among other things, that from February 1994 through November 1996, Young fraudulently obtained an aggregate of approximately $1.5 million from eleven of his clients, and transferred the money to Academy Circle, Incorporated ("ACI"), a company he controlled. The complaint alleges that Young obtained these funds by (i) making material misrepresentations to his clients about the expected returns, safety, and risks of investing in ACI or (ii) effecting unauthorized sales of securities in his clients' accounts and directing the proceeds of those sales to ACI. In addition, the complaint alleges that Young willfully failed to disclose in the Form ADV and its amendments that he filed with the Commission that he recommended to clients that they buy or sell securities or investment products in which he had some financial interest.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified by Young in his Offer.
Accordingly, IT IS ORDERED that Young be, and hereby is, barred from association with any broker, dealer, or investment adviser.
By the Commission.
Jonathan G. Katz
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