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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
TURNER SECURITIES ACT ATCO INVESTMENT ADVISERS EXCHANGE ADMINISTRATIVE PROCEEDINGS VIOLATIONS ALLEGES CLIENTS EXCHANGE COMMISSION PONZI SCHEME INDUCE PAY PROVISIONS TURNER COMMITTED VIOLATIONS ANTIFRAUD PROVISIONS ABETTED VIOLATIONS FILING RECORDKEEPING REQUIREMENTS REMEDIAL SANCTIONS WILLFUL VIOLATIONS FEDERAL CRIMINAL CONVICTION ADMINISTRATIVE LAW JUDGE ALLEGATIONS REMEDIAL ACTION RESPONDENTS PAY DISGORGEMENT |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 41842 / September 8, 1999
INVESTMENT ADVISERS ACT OF 1940
Release No. 1820 / September 8, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-10004
INVESTMENT ADVISER NAMED IN ADMINISTRATIVE PROCEEDINGS
The Securities and Exchange Commission today instituted public
administrative proceedings against Annable Turner & Co., Inc.
("ATCO"), a registered investment adviser, and Roger E. Turner
("Turner"), ATCO's principal and a former registered representative
with a registered broker-dealer. The Division of Enforcement alleges
that ATCO and Turner conducted a ponzi scheme in which they defrauded
35 of ATCO's advisory clients and other investors who lost a total of
approximately $5.46 million. More specifically, ATCO and Turner
induced clients to liquidate their conservatively invested retirement
savings to purchase other supposedly safe, but more profitable,
securities through ATCO. These securities, however, either did not
exist or involved investments in speculative ventures. Turner instead
diverted client monies to fund various now-defunct businesses he
controlled, to pay his personal expenses and to make ponzi payments to
investors. To conceal his conduct and to induce further investments,
Turner disseminated ATCO portfolio statements falsely reflecting
substantial account values.
The Division alleges that ATCO and Turner committed violations of the
antifraud provisions under the Securities Exchange Act of 1934,
Securities Act of 1933 and the Investment Advisers Act of 1940
("Advisers Act"). The Division further alleges that ATCO violated, and
Turner aided and abetted violations of the filing and recordkeeping
requirements of the Advisers Act. The Division seeks remedial
sanctions based on the willful violations of these provisions and
Turner's federal criminal conviction related to this scheme.
A hearing will be held before an administrative law judge to determine
whether the staff's allegations against ATCO and Turner are true, and
if so, what, if any, remedial action is appropriate and whether
respondents should be ordered to pay disgorgement.
_________________________________________________________________
Modified 09/08/1999
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