UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release No. 1798 / April 22, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9881
:
In the Matter of : ORDER INSTITUTING PUBLIC
: PROCEEDINGS, MAKING
WREN HAROLD HART, : FINDINGS AND IMPOSING
: REMEDIAL SANCTIONS
Respondent. :
:
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 Sections 203(f) of the Investment Advisers Act of
1940 ("Advisers Act") against Wren Harold Hart ("Hart").
II.
In anticipation of the institution of these administrative
proceedings, Hart has submitted an Offer of Settlement ("Offer")
to the Commission, 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 contained herein, except with respect to paragraph
III.A. below, which is admitted, Hart consents to the issuance of
this Order Instituting Proceedings, Making Findings and Imposing
Remedial Sanctions ("Order"), and to the entry of the findings
and the imposition of the remedial sanctions and penalties set
forth below.
III.
The Commission finds the following:[1]
SNIPPETS:
The Securities and Exchange Commission deems it appropriate and in the public interest that
In anticipation of the institution of these administrative proceedings, Hart has submitted an
Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
below, which is admitted, Hart consents to the issuance of this Order Instituting
Hart, individually and doing business as Financial Management Services, was a registered
Hart’s son-in-law was the only other employee of FMS, and was subject to Hart’s supervision.
On May 27, 1997, Hart filed a Form ADV-T with the Commission representing that as of the date
Further, in December 1997, Hart’s investment adviser registration was withdrawn with the
As set forth in paragraphs D, E, and F, herein, from approximately October 1993 through
In four separate transactions between October 1993 and November 1996, Hart’s son-in-law
In October 1993, the son-in-law fraudulently induced a client to give him a blank check in
The son-in-law forged the client’s signature on each check and deposited them into a personal
During this period, the son-in-law provided clients with FMS account statements, usually
The overstatements caused FMS to receive excess management fees and caused the performance
HART’S FAILURE REASONABLY TO SUPERVISE
Despite receiving these complaints, Hart conducted no meaningful follow-up with respect to
the Commission deems it appropriate and in the public interest to impose the sanctions and
Hart is suspended from association with any investment adviser for a period of three months
Hart shall provide to the Commission, within 10 days after the end of the nine month
made by United States postal money order, certified check, bank cashier's check or bank money
or check shall be sent to Harold F. Degenhardt, District Administrator, Securities and Exchange
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