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U.S. Securities and Exchange Commission

United States of America
Before the
Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 45446 / February 14, 2002

Administrative Proceeding
File No. 3-10701



In the Matter of
 
ROBERT SHANE JONES,
 
Respondent.
 
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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING, PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be instituted against Robert Shane Jones ("Respondent" or "Jones") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").

II.

In anticipation of the institution of this administrative proceeding, Respondent 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, Respondent, without admitting or denying the findings herein, except that Respondent admits the jurisdiction of the Commission over him and over the subject matter of this proceeding and the entry of a final judgment of permanent injunction against him as set forth in paragraph III.B below, Respondent by his Offer of Settlement consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanction ("Order"), and to the entry of the findings and remedial sanction set forth below.

Accordingly, IT IS ORDERED that a proceeding pursuant to Section 15(b) of the Exchange Act be, and hereby is, instituted.

III.

On the basis of this Order and the Respondent's Offer of Settlement, the Commission finds the following:1

  1. Respondent, age 37, resides in Greenville, Pennsylvania. From 1996 until mid-1997, Respondent worked as a registered representative at Currency Trading International, Inc. ("CTI"), a registered broker-dealer. From mid-1997 until January 1998, Respondent worked as a sales manager at Currency Trading's Akron, Ohio office. Respondent holds Series 15 and 63 licenses. In July 1998, Respondent was indicted by the state of Idaho for money laundering and racketeering; the indictment has since been dismissed. In December 1998, the state of Texas permanently enjoined Respondent from the fraudulent offer and sale of securities, including unregistered securities. Respondent does not currently work in the securities industry.
     
  2. On January 22, 2002, a Final Judgment of Permanent Injunction and Other Relief (the "Final Judgment") was entered against Respondent by the United States District Court for the Central District of California, Southern Division, in an action styled Securities and Exchange Commission v. Currency Trading International, Inc. et al., Case No. SACV 00-12 AHS (EEx). The Final Judgment permanently restrains and enjoins Respondent from directly or indirectly violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.
     
  3. The Commission's Complaint alleged that Respondent, and registered representatives he supervised, made material misrepresentations and omissions to potential and existing CTI customers in connection with the offer and sale of foreign currency options. Specifically, the complaint alleged that Respondent directly defrauded customers by: (1) promising to triple client investments within one week, (2) assuring clients who had incurred losses that sending more money would make up their losses, (3) failing to inform clients and potential clients that foreign currency options are highly speculative and the likelihood of the described potential profits was remote, (4) failing to inform clients and potential clients that nearly all of CTI's clients lost money and that CTI's commissions consumed virtually all gains over time, and (5) failing to inform clients and potential clients that CTI's policy was to refuse to allow clients to direct the activity in their accounts and that CTI's practice was to refuse to return client funds.

IV.

Based on the foregoing, the Commission deems it appropriate in the public interest to accept the Offer submitted by the Respondent and impose the sanction specified in the Offer.

Accordingly, IT IS HEREBY ORDERED that Respondent be, and hereby is, barred from association with any broker or dealer, with the right to reapply for association after three years to the appropriate self-regulatory organization, or if there is none, to the Commission.

By the Commission.

Jonathan G. Katz
Secretary

Endnote

1 The findings herein are made pursuant to Respondent's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding.

 

http://www.sec.gov/litigation/admin/34-45446.htm


Modified: 02/19/2002