UNITED STATES OF AMERICA
In the Matter of
DEAN C. TURNER
|ORDER MAKING FINDINGS AND
IMPOSING REMEDIAL SANCTIONS
On November 14, 2000, the Securities and Exchange Commission (Commission) 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).
Turner has submitted an Offer of Settlement (Offer) 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 to which the Commission is a party, and without admitting or denying the findings herein, except the Commission's jurisdiction over him and over the subject matter of this proceeding and the findings contained in Paragraphs II.A, II.B and II.C below, which are admitted, Turner consents to the entry of this Order Making Findings and Imposing Remedial Sanctions (Order).
On the basis of this Order and the Offer submitted by Turner, the Commission finds that:
A. Turner, age 42, was at all relevant times, a resident of Franklin, Michigan. From 1990 through December 1995, Turner was employed as a registered representative and vice president at the Troy, Michigan branch office of a registered broker-dealer. At no time was Turner personally registered as a broker-dealer.
B. On September 19, 1997, the Commission filed a Complaint for Permanent Injunction against Turner in Securities and Exchange Commission v. Dean C. Turner, et. al. (E.D. Mich., No. 97-74810). On November 3, 2000, the United States District Court for the Eastern District of Michigan entered a Final Judgment and Order of Permanent Injunction (Final Judgment) against Turner, which enjoins him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a)(1) and 15(c)(1) of the Exchange Act and Rules 10b-5 and 15c1-2 thereunder. Turner consented to the entry of the Final Judgment against him without admitting or denying the allegations in the Complaint. The Commission's Complaint alleged that, from 1992 to 1995, Turner sold promissory notes issued by Lease Equities Fund, Inc. (LEF) to his customers at the broker-dealer that employed Turner, but while acting independently from the broker-dealer. The Complaint also alleged that Turner conducted no due diligence to determine the risks and suitability of the LEF notes and that he made materially false and misleading statements to his customers regarding the collateral assigned to the notes, the safety of the notes, the financial condition of LEF and the use of note proceeds.
C. On June 16, 1999, in the case of U.S. v. Dean C. Turner, Crim. No. 96-80603 (E.D. Mich., May 26, 1998), a jury found Turner guilty of two counts of mail fraud, pursuant to 18 U.S.C. § 1341, specifically, the mailing to his employer's Compliance Officer of a false Registered Personnel Questionnaire and mailing to the National Association of Securities Dealers a false Form U-4 - Uniform Application for Securities Industry Regulation or Transfer. The counts of the indictment for which Turner was convicted alleged that both documents were false because Turner did not disclose in either, as required, that he sold LEF promissory notes to his broker-dealer clients, that he was a vice-president of LEF, and that he was president of NBF Cable Systems, Inc., an affiliate of LEF.
In view of the foregoing, it is in the public interest and for the protection of investors to impose the sanctions specified in Turner's Offer, such sanctions to begin from the date of the entry of the Commission's Order.
Accordingly, IT IS ORDERED THAT Dean C. Turner be and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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