SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16041 / January 22, 1999
SEC v. JOSEPH P. MEDSKER, UNIFIED FINANCIAL SERVICES AGENCY CORP., AND
UNIFIED FINANCIAL SERVICES ADVISORY CORP., Civil Action No. C3-96-381 (
USDC S.D. Ohio)(December 24, 1998)
On December 24, 1998, the Commission filed a Motion for Order to Show
Cause why Joseph P. Medsker (Medsker), as the corporate representative
of Unified Financial Services Agency Corp. (UFS Agency), should not be
held in contempt for failing to pay $15,000 on December 2, 1998 as
required by a December 2, 1997 order. That order, entered by consent
against all three defendants, required UFS Agency to pay $65,000 in
disgorgement over 3 years due to its involvement in a scheme to defraud
investors and adviser clients. The order was entered in the underlying
action filed by the Commission which alleged that Medsker, UFS Agency
and Unified Financial Services Advisory Corp. (UFS Advisory), a
registered investment adviser, engaged in a scheme to defraud in
connection with the offer, purchase and sale of more than $2.2 million
in unregistered partnership interests and participated in a cover up of
that scheme. In addition, the complaint alleged that Medsker churned a
trading account for one of the partnerships. Finally, the complaint
alleged that Medsker and UFS Agency acted as unregistered investment
advisers and Medsker and UFS Advisory failed to disclose to clients that
Medsker was previously sanctioned by the National Association of
Securities Dealers, Inc. Medsker, UFS Agency and UFS Advisory
consented, without admitting or denying the allegations of the
complaint, among other things, to be enjoined from future violations of
the federal securities laws, and UFS Agency was ordered to pay the
aforementioned disgorgement, payment of which was guaranteed by UFS
Advisory. Civil penalties were not ordered based on the defendants
demonstrated inability to pay. In a related administrative proceeding,
Medsker was barred from the industry and UFS Advisory was censured and
required to comply with certain remedial undertakings.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SEC v. JOSEPH P. MEDSKER, UNIFIED FINANCIAL SERVICES AGENCY CORP., AND UNIFIED FINANCIAL
On December 24, 1998, the Commission filed a Motion for Order to Show Cause why Joseph P.
That order, entered by consent against all three defendants, required UFS Agency to pay
The order was entered in the underlying action filed by the Commission which alleged that
Finally, the complaint alleged that Medsker and UFS Agency acted as unregistered investment
aforementioned disgorgement, payment of which was guaranteed by UFS Advisory.
Civil penalties were not ordered based on the defendants’ demonstrated inability to pay.
In a related administrative proceeding, Medsker was barred from the industry and UFS Advisory
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