NASD

NASD CONDUCT RULE 2330 AND 2110 - A CUSTOMER OPENED AN ACCOUNT AT A FIRM WITH GEORGE DEUSSEN ACTING AS HER REGISTERED REPRESENTATIVE. AROUND THIS TIME THE CUSTOMER TOLD THE RESPONDENT THE SHE HAD AN ADDITIONAL $80,000 TO INVEST. DEUSSEN CONTACTED THE CUSTOMER AND TOLD HER ABOUT AN OPPORTUNITY TO INVEST THE $80,000 IN A HIGH YIELD LIQUID ACCOUNT EARNING 10% PER YEAR. THE CUSTOMER PROVIDED THE RESPONDENT WITH $80,000 FOR INVESTMENT. DEUSSEN TOLD THE CUSTOMER THAT HER $80,000 INVESTMENT WOULD BE MADE THROUGH THE FIRM AND THAT SHE WOULD SOON RECEIVE DOCUMENTATION FROM THE FIRM REFLECTING THE INVESTMENT. DESPITE HER REQUEST FOR DOCUMENTATION REGARDING THE $80,000, DEUSSEN FAILED TO PROVIDE ANY VERIFICATION OF THE INVESTMENT. IN FACT, THE RESPONDENT TOOK CUSTODY OF THE FUNDS AND CAUSED THESE FUNDS TO BE DEPOSITED INTO A PERSONAL BANK ACCOUNT UNDER HIS CONTROL AND USED THEM FOR HIS PERSONAL BENEFIT. DEUSSEN RETURNED $20,000 TO THE CUSTOMER; HE HAS FAILED TO RETURN THE REMAINING $60,000.

Acceptance, Waiver & Consent(AWC)

Disgorgement/Restitution

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WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY CAPACITY AND IS ORDERED TO PAY RESTITUTION TO THE CUSTOMER IN THE TOTAL AMOUNT OF $60,000 PLUS INTEREST.

UTAH DIVISION OF SECURITIES

DISHONEST OR UNETHICAL PRACTICES; FRAUD; UNSUITABLE INVESTMENTS; BORROWING MONEY FROM CLIENTS; EMOLOYED ANY DEVICE, SCHEME, OR ARTIFICE TO DEFRAUD; MADE UNTRUE STATEMENTS OF MATERIAL FACT OR OMITTED TO STATE A MATERIAL FACT; ENGAGED IN ACTS, PRACTICES, OR COURSES OF BUSINESS WHICH WOULD OPERATE AS A FRAUD OR DECEIT UPON ANY PERSON

Order

Revocation/Expulsion/Denial

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ENTRY OF DEFAULT. BROKER-DEALER AGENT LICENSE REVOKED. BARRED FROM LICENSING WITH A BROKER-DEALER OR INVESTMENT ADVISER LICENSED IN UTAH.

SECURITIES FRAUD, A SECOND DEGREE FELONY, 2 COUNTS THEFT, A SECOND DEGREE FELONY, 1 COUNT. FALSE/FRAUDULENT INSURANCE CLAIM, A SECOND DEGREE FELONY, 1 COUNT. COMMUNICATIONS FRAUD, A SECOND DEGREE FELONY, 2 COUNTS.

FELONY

SECURITIES FRAUD, A SECOND DEGREE FELONY, 2 COUNTS DISPOSITION: FEBRUARY 03, 2004 - GUILTY, 1 COUNT. DISPOSITION: FEBRUARY 03, 2004 - DISMISSED, 1 COUNT. THEFT, A SECOND DEGREE FELONY, 1 COUNT. DISPOSITION: FEBRUARY 03, 2004 - GUILTY, 1 COUNT. FALSE/FRAUDULENT INSURANCE CLAIM, A SECOND DEGREE FELONY, 1 COUNT. DISPOSITION: FEBRUARY 03, 2004 - DISMISSED. COMMUNICATIONS FRAUD, A SECOND DEGREE FELONY, 2 COUNTS. DISPOSITION: FEBRUARY 03, 2004 - DISMISSED, BOTH COUNTS. CHARGED WITH 6 FELONY COUNTS. AS PART OF A PLEA AGREEMENT, DEUSSEN PLED GUILTY TO THEFT AND SECURITIES FRAUD, BOTH SECOND DEGREE FELONIES. DEUSSEN HAS A DEADLINE TO PROVIDE A LIST OF ADDITIONAL VICTIMS TO BE ENCOMPASSED IN PLEA AGREEMENT. SENTENCING DATE IS MAY 4, 2004.