UNITED STATES SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release No. 2014 / February 13, 2002
File No. 3-10698
PUBLIC ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST CRAIG P. SCANLON
On February 13, 2002, the Commission entered an Order Instituting Public Administrative Proceedings pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Order) against Craig P. Scanlon (Scanlon), an unregistered investment adviser, based on the entry of an Order of Permanent Injunction and Other Relief enjoining him from future violations of Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and, Sections 206(1) and 206(2) of the Advisers Act. SEC v. Craig P. Scanlon, et al., Case No. 8:01-CV-1446-T-24TGW (M.D. Fla. 2001).
The SEC alleged in its complaint that Scanlon misappropriated more than $700,000 from at least seven clients (the clients) by employing a common scheme to defraud them. The SEC further alleged that Scanlon fraudulently induced the clients to sell their securities holdings at various broker-dealers and transfer the monies to him based upon his oral promises to reinvest and manage their sales proceeds through Scanlon & Associates, Inc.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Scanlon an opportunity to dispute these allegations and to determine what sanctions, if any, are appropriate and in the public interest.