UNITED STATES SECURITIES AND EXCHANGE COMMISSION

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 Gerald Allan Eaton ("Respondent"). The Commission finds that from March 1995 to October 2019, Eaton was an associated person of Commonwealth Financial Network, a broker-dealer and investment adviser registered with the Commission. From June 1991 to February 1995, Eaton was an associated person of two other broker-dealers registered with the Commission. From January 1996 to October 2019, during Eaton's association with Commonwealth Financial Network, Eaton was also a certified financial planner and insurance agent doing business under the name Heritage Financial Group, a firm owned by Eaton, who was also its Chief Executive Officer. On September 30, 2020, Eaton pled guilty to one count of wire fraud in violation of Title 18 United States Code, Section 1343, one count of mail fraud in violation of Title 18 United States code, Section 1341, and one count of aggravated identity theft in violation of Title 18 United States Code, Section 1028A before the United States District Court for the District of Massachusetts, in United States v. Eaton, Crim. Information No. 1:20-cr-10173-DPW (D. Mass., filed September 1, 2020) (the "Criminal Action"). In connection with that plea, Respondent admitted, inter alia, that: (a) Beginning on a date unknown, but no later than in or around August 1999, and continuing through at least in or around October 2019, Eaton engaged in a scheme and artifice to obtain money and property from investment accounts and insurance policies that he controlled and managed on behalf of his clients; (b) In furtherance of this scheme, Eaton converted to his own personal use more than $3.7 million from accounts of at least fifteen clients; (c) As part of his scheme, Eaton forged client signatures on checks and other documents to enable him to misappropriate their funds; (d) As part of the scheme, and to avoid detection, Eaton often misappropriated funds in accounts of clients who were elderly, and/or in poor physical or mental health; and (e) By this scheme and artifice to defraud, Eaton obtained more than $3.7 million from clients. Eaton used the proceeds of his scheme to pay his personal credit card bills and his home equity line of credit, among other things.

Order

Bar (Permanent)

Association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO.

Indefinite

9/30/2020

Participating in any offering of a penny stock, including: acting as a promoter, finder, consultant or agent

Indefinite

9/30/2020

FINRA

Without admitting or denying the findings, Eaton consented to the sanction and to the entry of findings that he failed to provide documents and information requested by FINRA in connection with its investigation that began after learning of the conduct disclosed in a Form U5. The findings stated that in the Form U5, Eaton's member firm stated that the reason for the termination was that he fraudulently facilitated distributions from clients' accounts without their knowledge or consent or for their benefit.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

11/20/2019

Commonwealth Financial Network

Discharged

Forgery, wrongful taking of property.