UNITED STATES OF AMERICA
| 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 Charles G. Dyer ("Respondent" or "Dyer").
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 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:
1. Dyer was affiliated with Hawthorne Investment Trust (File No. 811-5982), an investment company registered with the Commission from 1989 to 2001. In addition, Dyer was an associated person of Hawthorne Associates, Inc. (File No. 801-26536), an investment adviser registered with the Commission from 1986 to 2000, and Mustang Capital, LLC (File No. 801-51536), an investment adviser registered with the Commission from 1996 to 1999. Dyer also acted as an unregistered broker and offered and sold unregistered securities from at least in or about late 1998 through at least in or about early 2000. Dyer, 65 years old, is a resident of Manchester, Massachusetts.
2. On September 15, 2003, a final judgment was entered by consent against Dyer, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 15(a) of the Exchange Act, and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Eric E. Resteiner, et al., Civil Action Number 01-CV-10637 (PBS), in the United States District Court for the District of Massachusetts.
3. The Commission's complaint alleged that, from in or about late 1998 through in or about early 2000, Dyer offered and sold securities for investment in a fictitious "trading program" that, like "prime bank" schemes, promised high, risk-free returns through trading in high quality debt instruments. The complaint alleged that Dyer, acting through two companies that he formed and controlled, received "performance" fees and fees for managing and administering investments in the fictional trading program. The complaint also alleged that Dyer otherwise engaged in a variety of conduct that operated as a fraud and deceit on investors; acted as an unregistered broker; and sold unregistered securities.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Dyer's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act, that Respondent Dyer be, and hereby is barred from association with any broker, dealer, or investment adviser.By the Commission.
Jonathan G. Katz
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