Initiated By
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Allegations
SEC LITIGATION RELEASE NO. 34-51002, IA 40-2341, IA 40-26721 DATED JANUARY 10, 2005; THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION" OR "SEC") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED AGAINST KERRY M. RIGDON, ("RESPONDENT" OR "RIGDON") PURSUANT TO SECTION 15(B) OF THE EXCHANGE ACT AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940.
Resolution
Order
Sanctions
Monetary/Fine
Amount
$50,000.00
Sanctions
Disgorgement/Restitution
Sanctions
Censure
Sanctions
Suspension
Sanctions
UNDERTAKINGS
Sanction Details
WITHOUT ADMITTING OR DENYING THE FINDINGS RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT AND CONSENTED TO THE ENTRY OF THIS ORDER. IT IS ORDERED RESPONDENT IS CENSURED, SHALL PAY DISGORGEMENT AND PREJUDGMENT INTEREST IN THE TOTAL AMOUNT OF $1.00 AND A CIVIL MONEY PENALTY IN THE AMOUNT OF $50,000.00, FOR A TOTAL PAYMENT OF $50,001.00 AND SUSPENDED FROM ASSOCIATION WITH ANY BROKER, DEALER, OR INVESTMENT ADVISER IN ANY SUPERVISORY CAPACITY FOR A PERIOD OF 12 MONTHS. IN ADDITION, RESPONDENT, HAS UNDERTAKEN TO PROVIDE TO THE COMMISSION, WITHIN 30 DAYS AFTER THE END OF THE RESPECTIVE SUSPENSION PERIODS AN AFFIDAVIT THAT HE HAS COMPLIED FULLY WITH THE APPLICABLE SANCTIONS.
Broker Comment
IN JANUARY, 2005 I AGREED TO, WITHOUT ADMITTING TO OR DENYING THE ALLEGATIONS, A SETTLEMENT WITH THE SEC & NYSE WHICH PROVIDED FOR A 1-YR SUSPENSION OF SUPERVISORY DUTIES & A MONETARY FINE FOR ALLEGED FAILURE TO SUPERVISE. THIS SETTLEMENT WAS THE RESULT OF A REVIEW OF SOUTHWEST SECURITIES INC. REGARDING MARKET-TIMING ACTIVITIES IN 2003. THE SETTLEMENT, WHICH INCLUDED SOUTHWEST SECURITIES & TWO OTHER INDIVIDUALS DID NOT, & HAS NOT, IMPACTED MY ABILITY TO PERFORM MY DUTIES AS A LICENSED SECURITIES REPRESENTATIVE. AT THE TIME OF THE REVIEW, ONE OF MY MANY RESPONSIBILITIES INVOLVED OVERSEEING THE PRIVATE CLIENT GROUP AT SOUTHWEST SECURITIES. A SINGLE BRANCH OFFICE WITHIN THIS GROUP WAS ALLEGED TO HAVE BEEN INVOLVED IN MARKET-TIMING ACTIVITY BY TWO INSTITUTIONAL CUSTOMERS. THIS ACTIVITY INVOLVED ACCTS BEING HANDLED BY THREE RESPRESENTATIVES WITHIN THAT BRANCH. I WAS NOT THE DIRECT SUPERVISOR OF THE BRANCH NOR WAS I THE INDIVIDUAL THAT THE REPRESENTATIVES REPORTED TO. I DID NOT HAVE CONTACT WITH THE ACCOUNTS REFERENCED NOR WAS I INVOLVED IN THE DAY-TO-DAY REVIEW OF THESE ACCOUNTS, HOWEVER, I WAS LISTED AS SR. SUPERVISOR OF THE BRANCH NETWORK. AT THIS TIME, I HAVE COMPLIED WITH THE CONDITIONS OF THE ORDER HAVING PAID THE MONETARY FINE WITHIN THE SPECIFIED PERIOD & THE TWELVE MONTH SUPERVISORY SUSPENSION CONCLUDED ON JAN. 10, 2006.