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U.S. Securities and Exchange Commission

Open Meeting Agenda
Monday, October 1, 2007

Agenda as of September 28, 2007. Note that Open Meeting agendas are subject to last-minute changes.

Item 1: Stephen J. Horning
Office:  Office of the General Counsel
Staff:  Joan Loizeaux, David Tess

Item 1: Stephen J. Horning

The Commission will hear oral argument in an appeal by Stephen J. Horning from the decision of an administrative law judge. Horning was the president, registered financial and operations principal, compliance officer, and a director of Rocky Mountain Securities & Investments, Inc., formerly a registered broker-dealer.

The law judge found that:

Horning failed reasonably to supervise two former Rocky Mountain employees with a view to preventing their violations of Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5; and

Horning was a cause of Rocky Mountain's inaccurate books and records and its filing of materially false reports in violation of Exchange Act Sections 15(c)(3), 17(a), and 17(e) and Exchange Act Rules 15c3-1, 15c3-3, 17a-3, 17a-5(a), 17a-5(c), 17a-5(d), 17a-11, and 17a-13.

The law judge barred Horning from association with any broker or dealer in a supervisory capacity and suspended him from association with any broker or dealer in any capacity for twelve months.

Among the issues likely to be argued are

  1. whether Horning failed reasonably to supervise; or
  2. whether Horning was the cause of the alleged financial, books, and recordkeeping violations; and
  3. if so, whether sanctions should be imposed in the public interest.

For further information, please contact the Office of the Secretary at (202) 551-5400.



Modified: 09/28/2007