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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. 48419 / August 29, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11238


In the Matter of

GREGORY P. WALDON,

Respondent.


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ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b)(6) 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)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Gregory P. Waldon ("Respondent").

II.

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept. Solely for the purposes 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 jurisdiction of the Commission over him and over the subject matter of these proceedings, and the findings set forth in Section III.2. below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant To Section 15(b)(6) Of The Securities Exchange Act Of 1934, Making Findings And Imposing Remedial Sanctions ("Order"), as set forth below:

III.

FINDINGS AND CONCLUSIONS

On the basis of this Order and Respondent's Offer, the Commission finds that:

1. Waldon, age 51, was a registered representative associated with FASCO International, Inc., a broker-dealer registered with the Commission, from approximately March 1998 until approximately May 2001. From approximately May 2001 until approximately February 2002, Waldon was associated, successively, as a registered representative with two other broker-dealers registered with the Commission. Waldon is not currently associated with any registered entity.

2. On June 26, 2002, the Commission filed a complaint against Waldon in an action entitled Securities and Exchange Commission v. Gregory P. Waldon, No. S-02-1395 LKK KJM (E.D. Cal.) ("injunctive action"). On August 13, 2003, the United States District Court entered a Final Judgment of Permanent Injunction and Other Relief ("Final Judgment"), by consent, against Waldon, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].

1. 3. The Commission's complaint in the injunctive action alleged that Waldon defrauded customers in connection with sales to them of variable annuities, by soliciting them to switch out of investments they already had in variable annuities and use the funds to purchase new variable annuities, incurring costs and expenses in the process. The complaint alleged that Waldon acted with scienter, as he profited from the sales while the customers incurred increased costs or risks from the transactions, without offsetting benefits. The complaint further alleged that Waldon made material misrepresentations to customers, and omitted material information important to the customers, with respect to certain sales.

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent's Offer.

ACCORDINGLY, IT IS HEREBY ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act, 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

 

http://www.sec.gov/litigation/admin/34-48419.htm


Modified: 08/29/2003