UNITED STATES OF AMERICA
In the Matter of
ALFRED M. LEMCKE,
|ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted 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") against Alfred M. Lemcke ("Lemcke" or "Respondent").
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings 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 as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III. C below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
On the basis of this Order and Respondent's Offer, the Commission finds that:
A. Lemcke at all relevant times, acted as an unregistered investment adviser. From September 1993 through January 2000, and from June 2000 through November 2001, Lemcke was also a registered representative associated with a broker-dealer registered with the Commission. Lemcke, age 43 is a resident of Quincy, MA.
B. On May 1, 2002, Lemcke was indicted by a federal grand jury impaneled by the United States Attorney's Office for the District of Massachusetts. The indictment alleged that from at least March 1996 through September 2001, Lemcke defrauded five of his investment advisory clients of several hundred thousand dollars. According to the indictment, Lemcke obtained funds from his clients with false promises that he would invest the funds in various securities, and in some cases induced his clients to liquidate existing investments. The indictment further alleged that, contrary to his representations, Lemcke used essentially all of the fraudulently obtained funds to support his lifestyle and to repay a loan.
C. On September 24, 2002, Lemcke pled guilty to one count of fraud in violation of Section 206 of the Advisers Act [5 U.S.C. § 80b-6] and nine counts of wire fraud in violation of 18 U.S.C. § 1343 before the United District Court for the District of Massachusetts, in United States v. Alfred M. Lemcke, Criminal Indictment No. 02-10144 (DPW).
D. The counts of the criminal indictment to which Lemcke pled guilty alleged, inter alia, that Lemcke held himself out as an investment adviser, that he defrauded clients and obtained money by means of materially false and misleading statements, and that he routinely used the instrumentalities of interstate commerce to defraud clients and obtain money.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Lemcke's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of Advisers Act, that Respondent Lemcke be, and hereby is, barred from association with any broker, dealer or investment adviser.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
C:\TEMP\Lemcke Follow-On Order(conviction)(HQ)21.wpd
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