UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7726 / August 18, 1999
SECURITIES EXCHANGE ACT OF 1934
Release No. 41754 / August 18, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9978
In the Matter of
JOHN J. MCGARRY,
Respondent.
ORDER INSTITUTING
PUBLIC PROCEEDINGS,
MAKING FINDINGS
AND IMPOSING
REMEDIAL SANCTIONS
AND CEASE-AND-DESIST
ORDER
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that administrative proceedings
be instituted pursuant to Section 8A of the Securities Act of 1933
("Securities Act") and Sections 15(b), 19(h) and 21C of the Securities
Exchange Act of 1934 ("Exchange Act") against John J. McGarry
("McGarry").
In anticipation of the institution of these proceedings, McGarry has
submitted an Offer of Settlement ("Offer") which the Commission has
determined to accept. Solely for the purposes of these proceedings and
any other proceedings brought by or on behalf of the Commission or in
which the Commission is a party, McGarry, by his Offer, consents,
without admitting or denying the findings contained herein, except
that he admits that the Commission has jurisdiction over him and over
the subject matter of these proceedings, to the entry of this Order
Instituting Public Proceedings, Making Findings and Imposing Remedial
Sanctions and Cease-and-Desist Order ("Order").
Accordingly, IT IS ORDERED that proceedings against McGarry be, and
hereby are, instituted.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
The Securities and Exchange Commission deems it appropriate and in the public interest that
Solely for the purposes of these proceedings and any other proceedings brought by or on
der.
1.At all times relevant to this action, McGarry, age 65, was employed as a registered
2.Equipment Leasing Corporation of America was incorporated in Delaware in May 1986 and
The company is a wholly-owned subsidiary of Walnut Equipment Leasing Co., Inc., which is
Welco, which is controlled by the same individuals who control Walnut and ELCOA, engages in
McGarry, who received commissions totaling approximately $134,000 from Welco for his sales,
As part of his sales efforts, McGarry engaged in a pattern of fraudulent conduct involving
6.McGarry misrepresented and failed to disclose material facts to his customers concerning
Contrary to the disclosures in the prospectus, McGarry told his customers that ELCOA's
Given the clear disclosures in the prospectus, McGarry either knew or was reckless in not
However, from November 9, 1996 through August 1997, McGarry continued to sell over $160,000
a.Willfully violated and/or committed or caused violations of Section 17of the Securities
property by means of, or otherwise made, untrue statements of material fact or omitted to state
b.Willfully violated and/or committed or caused violations of Section 15of the Exchange Act
11.McGarry, who declared bankruptcy on November 14, 1997, has submitted a sworn financial
On the basis of the foregoing, the Commission deems it appropriate and in the public interest
IT IS FURTHER ORDERED THAT the Division of Enforcement may, at any time following the entry
ot been accepted.
|
