Securities Exchange Act of 1934
Release No. 48071 / June 20, 2003
Administrative Proceeding
File No. 3-11163
In the Matter of LLOYD BENTON SHARP Respondent. |
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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS |
I.
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") against Lloyd Benton Sharp ("Respondent" or "Sharp").
II.
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.2 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, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
III.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. For the period of October 2002 though February 2003, Sharp was associated with an unregistered broker-dealer.
2. On June 6, 2003, a final judgment was entered by consent against Sharp permanently enjoining him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, and from participating in any way in the sale of securities unless a registration statement was filed or in effect for such securities in the civil action entitled Securities and Exchange Commission v. Pension Plans of America, et al., Civil Action Number 03-5269 in the United States District Court for the Western District of Washington.
3. The Commission's complaint alleged that in 2002 and 2003, Sharp offered and sold, via the Internet, unregistered limited partnership interests in a venture to supposedly grow and market paulownia trees through Pension Plans of America, Inc. ("PPA"). According to the Commission's complaint, Sharp falsely claimed that PPA was a non-profit organization created to assist investors, particularly retirees and senior citizens, in finding safe and secure investments providing "heightened" returns. The complaint further alleged that Sharp falsely represented that the limited partnership investment was extremely safe (comparing it to "gold in Fort Knox") and would provide a "very secure" 16% annual return because it had an "iron-clad" $81.8 million contract with another company to purchase the matured trees. The complaint also alleged that Sharp arranged for investors to direct individual retirement account funds to the PPA investment. Finally, the Commission's Complaint alleged that Sharp, a recidivist who was previously convicted of fraud and twice enjoined from violations of federal laws relating to the protection of investors, failed to disclose those material facts about his disciplinary history.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Sharp's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Sharp be, and hereby is barred from association with any broker or dealer.
By the Commission:
Jonathan G. Katz
Secretary