Initial Decision of an SEC Administrative Law Judge
Dennis E. Ward
INITIAL DECISION RELEASE NO. 226
ADMINISTRATIVE PROCEEDING
FILE NO. 3-10485
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
_________________________________________________________________
In the Matter of
DENNIS E. WARD
_________________________________________________________________
INITIAL DECISION
May 8, 2003
APPEARANCES Stephen J. Korotash for the Division of Enforcement,
United States Securities and Exchange Commission
P. Michael Armstrong for Respondent
BEFORE Lillian A. McEwen, Administrative Law Judge
SUMMARY
Respondent Dennis E. Ward (Ward) willfully aided and abetted, and
caused a registered broker-dealer's violations of Sections 15(b)(7)
and 17(a) of the Securities Exchange Act of 1934 (Exchange Act) and
Rules 15b7-1 and 17a-3 thereunder. This Initial Decision imposes a
suspension, cease-and-desist order, disgorgement, and civil monetary
penalty against Ward.
PROCEDURAL HISTORY
On May 17, 2001, the United States Securities and Exchange Commission
(Commission) issued an Order Instituting Public Administrative and
Cease-and-Desist Proceedings (OIP) against Ward pursuant to Sections
15(b), 19(h), and 21C of the Exchange Act. On March 4, 2003, I held a
public hearing in Fort Worth, Texas. During the hearing, Ward
testified on his own behalf and the Division of Enforcement (Division)
called no witnesses. I admitted into evidence two exhibits from Ward
and two exhibits from the Division. The Division's Post-Hearing Brief
was filed on April 8, 2003, and the Respondent's Post-Hearing Brief
SNIPPETS:
Initial Decision of an SEC Administrative Law Judge
Dennis E. Ward
APPEARANCES Stephen J. Korotash for the Division of Enforcement, United States Securities and
Respondent Dennis E. Ward willfully aided and abetted, and caused a registered
This Initial Decision imposes a suspension, cease-and-desist order, disgorgement, and civil
On May 17, 2001, the United States Securities and Exchange Commission issued an Order
Ward testified on his own behalf and the Division of Enforcement called no witnesses.
The Division's Post-Hearing Brief was filed on April 8, 2003, and the Respondent's
The OIP alleged that from approximately December 1995 through at least May 1997, Sunpoint
of Securities Dealers of which Sunpoint was a member.
The OIP further alleged that Ward willfully aided and abetted, and caused Sunpoint's
volved in effecting such transactions; knew or reasonably should have known that the
Ward a resident of Fort Worth, Texas, graduated from the University of Texas in 1969 with a
Ward signed subscription documents, new account forms, order tickets, and other documents
The Division requests that the Commission enter a cease-and-desist order, order disgorgement
Pursuant to Section 15of the Exchange Act, the Commission promulgated Rule 15b7-1, which
The record-keeping requirements of Section 17of the Exchange Act and the regulations
For aiding and abetting liability under the federal securities laws, three elements must be
he egregiousness of the defendant's actions; the isolated or recurrent nature of the
Sections 15and 19of the Exchange Act authorize the imposition of sanctions on any person
He has repeated the same conduct, which he previously settled with the NASD for committing.
It is therefore in the public interest that Ward be suspended for one year from associating
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