United States of America
before the
Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 47640 / April 7, 2003
Administrative Proceeding
File No. 3-11083
_________________________________________________________________
In the Matter of
Daniel L. Springate
Respondent.
_________________________________________________________________
ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND
IMPOSING A CEASE-AND-DESIST ORDER PURSUANT TO SECTION 21C OF THE
SECURITIES EXCHANGE ACT OF 1934
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate that public cease-and-desist proceedings be, and hereby
are, instituted pursuant to Section 21C of the Securities Exchange Act
of 1934 ("Exchange Act") against Daniel Lamont Springate
("Respondent").
II.
In anticipation of the institution of these proceedings, Respondent
has submitted an Offer of Settlement (the "Offer") 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 herein, except as to the
Commission's jurisdiction over him and the subject matter of these
proceedings, Respondent consents to the entry of this Order
Instituting Cease-and-Desist Proceedings, Making Findings, and
Imposing a Cease-and-Desist Order Pursuant to Section 21C of the
Securities Exchange Act of 1934 ("Order"), as set forth below.
III.
On the basis of this Order and Respondent's Offer, the Commission
finds that
SNIPPETS:
Securities and Exchange Commission
ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND IMPOSING A
The Securities and Exchange Commission deems it appropriate that public cease-and-desist
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of
From April 2001 through April 2002, Harrison repeatedly conducted a securities business while
Harrison was out of net capital on numerous occasions and filed several inaccurate Financial
From April 1, 2001 through August 22, 2001, on at least eight occasions, as a result of
Harrison improperly calculated its net capital and had a net capital deficiency because,
rs of cash to Blumer and HSI Inc., a/k/a HSI, an entity owned and controlled by Blumer.
One of the improper net capital computations was reflected in a FOCUS report Harrison filed
Harrison also failed to provide notice to the Commission of its net capital deficiencies and
By operating without sufficient net capital, Harrison violated Section 15of the Exchange Act
Springate was a cause of certain of the firm's violations.
Daniel Lamont Springate, age 59, founded DL Springate Securities, a registered broker-dealer,
Harrison acts as an introducing broker, effecting securities transactions on a fully
Blumer controlled all of Harrison's operations, prepared and maintained all of Harrison's
As an introducing broker that does not clear trades or carry customer accounts, Harrison was
J. In addition, Harrison's books and records reflect that the firm had excess net capital on
K. The net capital deficiencies set forth in paragraphs I. and J., above, arose from one or
Blumer improperly recorded deposits in Harrison's cash receipts blotter prior to the actual
Blumer improperly accrued Harisson's expenses either by not accruing an expense when it was
Blumer improperly delayed recording cash disbursements on Harrison's cash disbursements
In the quarter in which Harrison filed its FOCUS report, Blumer used the amount of 6-2/3
Blumer failed to deduct haircut and, when appropriate, undue concentration charges in
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