UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-83140; IA Release 40-4901, May 1, 2018: The SEC deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940 against Kevin Hamilton. In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement 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, Respondent admits the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained herein, and consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions. On the basis of this Order and Respondent's Offer, the Commission finds that on September 14, 2017, Hamilton pleaded guilty to two counts of securities fraud in violation of 15 U.S.C. §§ 78j(b), 78ff, and 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, before the United States District Court for the Eastern District of Pennsylvania, in Case No. 2:16-cr-00397.

Order

Bar (Permanent)

broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

5/1/2018

penny stock

Indefinite

5/1/2018

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, HAMILTON CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE FORMED AN ENTITY AS A LIMITED PARTNERSHIP AND WAS A CONTROLLING MEMBER AND AN OWNER OF THE GENERAL PARTNER FOR THE ENTITY. THE FINDINGS STATED THAT HAMILTON SOLICITED INVESTMENTS IN THE ENTITY BY MARKETING IT AS AN INVESTMENT FUND THAT OFFERED A SPECIAL OPPORTUNITY FOR INVESTORS. INVESTORS, SOME OF WHOM WERE CUSTOMERS OF HAMILTON'S MEMBER FIRM, INVESTED $591,000 IN THE LIMITED PARTNERSHIP THROUGH HAMILTON. THE FINDINGS ALSO STATED THAT HAMILTON CONVERTED OR MISUSED APPROXIMATELY $522,000 OF THE FUNDS HE RECEIVED FROM THE INVESTORS. ONE OF THE CUSTOMERS INVESTED A TOTAL OF $300,000 IN FOUR SENIOR CONVERTIBLE NOTES AND HAMILTON FACILITATED TWO OF THE CUSTOMER'S NOTE INVESTMENTS BY EFFECTING $180,000 IN WIRES FROM HER BROKERAGE ACCOUNT WITH THE FIRM TO HIS ENTITY'S BANK ACCOUNT. THE FINDINGS ALSO INCLUDED THAT HAMILTON MADE FRAUDULENT MISREPRESENTATIONS AND OMISSIONS OF MATERIAL FACTS TO, AT MINIMUM, THE ENTITY'S INVESTORS IN CONNECTION WITH THE SALE OF THE ENTITY'S SECURITIES. THEREBY, HAMILTON WILLFULLY VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 PROMULGATED THEREUNDER, AND FINRA RULES 2020 AND 2010.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

5/28/2014

RESPONDENT UNDERSTANDS THAT THIS SETTLEMENT INCLUDES A FINDING THAT HE WILLFULLY VIOLATED SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER AND THAT UNDER ARTICLE III, SECTION 4 OF FINRA'S BY-LAWS, THIS MAKES HIM SUBJECT TO STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.

UNSUITABILITY

$6,374.00

$33,000.00

SMITH BARNEY SETTLED - APPROX $35,000 I DECIDED TO GO TO ARBITRATION - REQUIRED TO PAY $14,000 CLIENT HAD A POSITION IN COMPUTER ASSOC. STOCK WENT DOWN IN BEAR MARKET OF THE FALL OF 1989