UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 45785 / April 19, 2002
File No. 3-8531 D
In the Matter of
LAURIE JONES CANADY,
| ORDER MAKING FINDINGS AND
REQUIRING PAYMENT OF
DISGORGEMENT AND REASONABLE
INTEREST PURSUANT TO SECTION 21B(e)
OF THE SECURITIES EXCHANGE ACT OF 1934|
In these proceedings ordered pursuant to Section 8A of the Securities Act of 1933 (Securities Act) and Sections 15(b), 19(h) and 21C of the Securities Exchange Act of 1934 (Exchange Act), Respondent Laurie Jones Canady (Canady or Respondent) submitted an Offer of Settlement (Offer of Settlement), which the Securities and Exchange Commission (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, Canady withdraws her Petition for Review of the Initial Decision in In the Matter of Laurie Jones Canady, (A.P. File No. 3-8531 D) entered November 26, 2001, consents to the entry of this Order Making Findings and Requiring Payment of Disgorgement and Reasonable Interest Pursuant to Section 21B(e) of the Securities Exchange Act of 1934 (Order), admits the Commission's jurisdiction over her and over the subject matter of this proceeding and admits the findings set forth in this Order.
On the basis of this Order and the Offer of Settlement submitted by Canady, the Commission finds that:
- On April 5, 1999, the Commission issued an opinion in In the Matter of Laurie Jones Canady, 1999 WL 183600, SEA Rel. No. 34-41250 (April 5, 1999). The Commission found that, from January 1988 through February 1990, Canady, while employed as a registered representative for a broker-dealer in Davenport, Iowa, engaged in excessive trading, recommended unsuitable trades and made unauthorized trades and unauthorized use of margin in the accounts of four customers. As a result, the Commission found that Canady willfully violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Commission barred Canady from association with any broker or dealer, ordered her to cease and desist from future violative conduct and ordered her to disgorge $23,624, representing the amount of commissions she received from the accounts of the four customers and $28,069 in prejudgment interest provided, however, that the disgorgement amount could be reduced by the amount of commissions Canady could demonstrate through an accounting that she earned from unsolicited trades.
- On October 31, 2000, In Canady v. SEC, 230 F.3d 362 (D.C. Cir. 2000), the United States Court of Appeals for the District of Columbia denied Canady's Petition for Review of the Commission's decision described in Paragraph II.A. above.
- On November 26, 2001, in In the Matter of Laurie Jones Canady, 2001 WL 1487657, SEA Rel. No. ID-195 (November 26, 2001), an Administrative Law Judge, after reviewing an accounting submitted by Canady and the Division of Enforcement's response thereto, issued an Initial Decision (Initial Decision) that ordered Canady to disgorge $23,070, and to pay prejudgment interest of $27,598 and post-judgment interest of $6,615 through November 30, 2001.
- The Initial Decision issued on November 26, 2001, shall become the final order of the Commission regarding payment of disgorgement and reasonable interest except as set forth below in Paragraph III.
In view of the foregoing, it is in the public interest to impose the remedies specified in Canady's Offer.
IT IS ORDERED THAT Laurie Jones Canady pay the disgorgement and prejudgment interest amounts referred to in Paragraph II.C above and post-judgment interest, calculated through January 31, 2002, of $7,046 according to the following terms:
- Payment of $25,000 within 14 (fourteen) days of the entry of this Order. Such payment is to be: (a) made by United States postal money order, certified check, bank cashier's check or bank money order; (b) made payable to the Securities and Exchange Commission; (c) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312-003; and (d) submitted under cover letter that identifies Laurie Jones Canady as a Respondent in this matter, the case number of this matter, a copy of which cover letter and money order or check shall be sent to Jerrold H. Kohn, Senior Attorney, Securities and Exchange Commission, 175 W. Jackson Blvd., Suite 900, Chicago, IL 60604;
- Payment of the balance of $32,714 within 6 (six) months of the entry of this Order. Such payment is to be made in the manner identical to that described in Paragraph III.A. above; and
- Respondent understands and agrees that if she fails to make payment of any monies in accordance with the terms described in Paragraphs III.A and III.B above, that (1) all sums will become due immediately; (2) post-judgment interest will continue to accrue from January 31, 2002 until the date that all sums are paid in full; and (3) the Division of Enforcement will seek any additional remedies that the Commission would be authorized to impose in this proceeding if Canady's Offer had not been accepted. Canady may not, by way of defense to any such petition, contest the findings in this Order or the Commission's authority to impose any additional remedies that were available in the original proceeding.
By the Commission.
Jonathan G. Katz