UNITED STATES OF AMERICA
In the Matter of
JOHN ADAMS, JR., et al.
|ORDER MAKING FINDINGS AND IMPOSING SANCTION BY DEFAULT AGAINST NEIL WHITE|
This Order bars Neil White from association with a broker-dealer, based on his felony conviction. White, who had been associated with a broker-dealer that operated as a boiler room, was convicted of conspiracy to commit securities fraud.
The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) in this matter on February 15, 2002, pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). The OIP alleges that Neil White was associated with a broker-dealer from March 1992 to September 1995, and was convicted of conspiracy to commit securities fraud. On April 2, 2002, the Division of Enforcement (Division) filed a Motion for Default, pursuant to 17 C.F.R. § 201.155(a)(2), asking that White be barred from association with any broker or dealer. By letter dated May 3, 2002, White affirmatively stated that he would not defend the proceeding and would accept a default ordering the relief that the Division seeks.
White is in default within the meaning of 17 C.F.R. § 201.155(a)(2) in that he affirmatively declined to defend the proceeding. Accordingly, the undersigned finds that the allegations in the OIP as to him are true. The findings of fact and conclusions of law made in this order as to White are not binding on any other person in this proceeding.
II. FINDINGS OF FACT
White was employed as a registered representative, an assistant branch manager, and a regional vice president from March 1992 to September 1995 at a registered broker-dealer, L.C. Wegard & Co., Inc. (Wegard). Wegard operated as a boiler room, and White and others participated in a conspiracy to commit securities fraud by inducing unsuspecting investors to purchase speculative high-risk securities through the use of fraudulent and deceptive sales practices. White was convicted of conspiracy to commit securities fraud on July 21, 2000. United States v. Neil White, No. 98-414-04 (D. N.J. July 21, 2000).
III. CONCLUSIONS OF LAW
White has been convicted, within ten years of the commencement of this proceeding, of "conspiracy to commit" a felony that "involves the purchase or sale of any security" and also "arises out of the conduct of the business of a broker [or] dealer" within the meaning of Sections 15(b)(4)(B) and 15(b)(6)(A)(ii) of the Exchange Act. His unlawful conduct was recurring and egregious. There are no mitigating circumstances.
The Division requests that White be barred from association with any broker or dealer. This sanction will serve the public interest and the protection of investors, pursuant to Sections 15(b) and 19(h) of the Exchange Act. It accords with Commission precedent and the sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979).
IT IS ORDERED that NEIL WHITE IS BARRED from association with any broker or dealer.
Carol Fox Foelak
Administrative Law Judge
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