UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-85407; IA Release 40-5208, March 25, 2019: The Securities and Exchange Commission ("Commission") 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 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Kevin D. Wanner ("Wanner"). On December 5, 2017, Wanner pleaded guilty to one count of mail fraud in violation of 18 U.S.C. § 1341, a felony, before the United States District Court for the District of North Dakota, in U.S. v. Kevin D. Wanner, Case No. 1:17-cr-170. On July 23, 2018, a judgment in the criminal case was entered against Wanner, which was amended on December 1, 2018, to add restitution. Wanner was sentenced to 11 years and 3 months of imprisonment and ordered to forfeit $3,099,424.60 and pay restitution of $550,116.51. According to his plea agreement, the mail fraud count to which Wanner pleaded guilty was premised on his operation of a fraudulent scheme in which Wanner defrauded his investment clients out of more than $3 million by intentionally providing false information and counterfeit documents, including, but not limited to, sham account statements, tax documents, and account summaries, to create the appearance that certain investments were legitimate when, in fact, the investments did not exist.

Order

Bar (Permanent)

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

Indefinite

3/25/2019

Participating in any offering of a penny stock

Indefinite

3/25/2019

Penny Stock Bar

18 U.S.C. 1957 Money Laundering

Pled guilty

18 U.S.C. 1341, Mail Fraud

Pled guilty

FINRA

Without admitting or denying the findings, Wanner consented to the sanction and to the entry of findings that he failed to provide documents, information, and to appear for testimony in response to request letters issued by FINRA after FINRA began an investigation into the events leading up to Wanner's termination from his member firm including, among other things, whether he misappropriated customer funds. The findings stated that in its Form U5 filed with FINRA, the firm stated that Wanner had been discharged after the North Dakota Securities Department issued a cease and desist order alleging that Wanner "offered for sale and sold to a North Dakota resident a 'time certificate of deposit' purporting to represent an investment in an FDIC insured interest bearing account" and "misrepresented to the investors that their funds would be deposited with the FDIC member financial institutions represented and instead deposited their funds into accounts owned and controlled by him for his own purpose."

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

1/11/2016

North Dakota Securities Department

The Securities Commissioner has found that the Respondent Wanner has engaged in multiple violations of the Securities Act and that he has engaged in dishonest, fraudulent or unethical practices as defined by applicable administrative rules as set forth in said Order. These acts and practices are sufficient grounds to revoke the agent registration of Respondent Wanner.

Order

Revocation