 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
COMMISSION EXCHANGE COMMISSION SAN CLEMENTE BROKER-DEALER COMPLAINT RECEIVER UNITED CUSTODIAL CORPORATION LAWSUIT OPERATING FIRM SETTLE CONSENTING ALLEGES CDS CUSTOMERS DISBURSEMENTS INVESTOR SECURITIES EXCHANGE ACT ASSETS VIOLATIONS CAPITAL RESERVE PROVISIONS THEREUNDER ENGAGEMENT CPA FIRM OVERSIGHT UCC APPOINTMENT NATIONAL ASSOCIATION SECURITIES DEALERS |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16633 / July 21, 2000
SECURITIES AND EXCHANGE COMMISSION v. UNITED CUSTODIAL CORPORATION,
Civil Action No. 00-07907 JSL (Mcx) (C.D. Cal.)
On July 21, 2000, the Securities and Exchange Commission filed a
lawsuit in federal court in Los Angeles alleging that a San Clemente,
California-based business, United Custodial Corporation, was operating
as an unregistered brokerage firm. United Custodial has agreed to
settle this matter by consenting to the entry of a permanent
injunction without admitting or denying allegations in the
Commission's complaint.
In its complaint, the Commission alleges that from approximately 1993
through April 2000, United Custodial's affiliate company, San Clemente
Securities, sold interests in bank-issued FDIC insured certificates of
deposit, or CDs, to the public. The CDs were issued in the name of,
and held by, United Custodial, as custodian on behalf of San
Clemente's customers. The Commission's complaint further alleges that
as a part of this custodial relationship, United Custodial received,
held and disbursed investor funds and received, held and delivered
investor securities, thereby operating as a full-clearing
broker-dealer. United Custodial is not registered with the Commission
as a broker-dealer, as required by Section 15(a) of the Securities
Exchange Act of 1934.
As part of its lawsuit, the Commission charged United Custodial with
violations of the broker-dealer registration and capital reserve
provisions of Sections 15(a) and 15(c)(3) of the Securities Exchange
Act of 1934 and Rule 15c3-3 thereunder.
As part of its settlement with the Commission, United Custodial has
agreed to maintain the engagement of a CPA firm to provide oversight
of all disbursements from UCC. United Custodial has also agreed to
transfer the CD assets of San Clemente customers to an appropriate
custodian within 180 days. If a new custodian cannot be found within
that period, United Custodial has consented to the appointment of a
receiver for those assets.
The Commission acknowledges the valuable assistance provided by the
National Association of Securities Dealers in bringing this case.
_________________________________________________________________
Modified 07/24/2000
SNIPPETS:
|
|
|
| | | |
|
|
