SECURITIES EXCHANGE ACT OF 1934
Release No. 49899 / June 22, 2004
INVESTMENT ADVISERS ACT OF 1940
Release No. 2252 / June 22, 2004
ADMINISTRATIVE PROCEEDING
File No. 3-11527
In the Matter of DAVID FARRELL MCLEAN, Respondent. |
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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 |
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") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against David Farrell McLean ("Respondent" or "McLean").
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 Sections III.2 and III.3 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.
III.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. From approximately October 1995 through February 2003, Respondent was associated with an entity that was registered with the Commission as a broker-dealer and as an investment adviser. Respondent, 33 years old, is currently incarcerated at the Seymour Johnson Federal Prison Camp in Goldsboro, North Carolina.
2. On September 2, 2003, Respondent was convicted, pursuant to a plea agreement, of one count of wire fraud and one count of money laundering in violation of Title 18 United States Code, Sections 1343 and 1957 before the United States District Court for the Eastern District of North Carolina, in United States v. David Ferrell McLean, CR. No. 7:03-CR-55-1F1.1 On February 2, 2004, Respondent was sentenced to 84 months in prison, to be followed by three years of supervised release. He was also ordered to pay $771,124 in restitution.
3. The counts of the indictment to which Respondent pled guilty alleged, inter alia, that Respondent misappropriated securities from customer accounts and fraudulently converted those securities into monies that he used for his own personal benefit.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent McLean'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 McLean be, and hereby is barred from association with any broker, dealer or investment adviser.
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
By the Commission.
Secretary
Endnotes