UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-85939, IA Release 5241 / May 24, 2019: The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative be instituted against Robert Kenneth Lindell, Jr. ("Lindell" or "Respondent"). On the basis of this Order and Respondent's Offer, the Commission finds that on November 7, 2018, Lindell was convicted by a jury in Penobscot County Superior Court, Maine, of fifteen criminal counts involving theft, securities fraud, intentional evasion of Maine income tax, and failure to pay Maine income tax. [State of Maine v. Robert Kenneth Lindell, Jr., Docket No. CR-17-707.] The conviction concerned Lindell defrauding two elderly widows out of more than $3 million and failure to pay taxes on the income he earned as a result of the fraud, instead receiving tax refunds he was not entitled to.

Order

Bar (Permanent)

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

Indefinite

5/24/2019

from participating in any offering of a penny stock

Indefinite

5/24/2019

FINRA

Respondent Lindell failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

7/20/2017

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated April 17, 2017 and May 11, 2017, respectively, on July 20, 2017, Lindell is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

FAILURE TO PAY MAINE STATE INCOME TAX; 36 M.R.S. § 5332(1)(A) (CLASS D)

Convicted

INTENTIONAL EVASION OF INCOME TAX; 36 M.R.S. § 184-A(2) (CLASS C)

Convicted

THEFT BY UNAUTHORIZED TAKING OR TRANSFER; 17-A M.R.S. §§ 352(5)(E) & 353(1)(A) & (B)(1) (CLASS B)

Convicted

KNOWING OR INTENTIONAL SECURITIES VIOLATION; 32 M.R.S. §§ 16508(1) & 16501(1), (2), or (3) (CLASS C)

Convicted

THEFT BY DECEPTION; 17-A M.R.S. § 354(1)(A) & (B)(4) (CLASS C)

Convicted

MAINE BUREAU OF INSURANCE

MAINE DEPT.OF INSURANCE HAS PROPOSED FOR MR. LINDELL'S CONSIDERATION A CONSENT AGREEMENT IN ORDER TO RESOLVE THE BUREAU'S ALLEGATION THAT MR. LINDELL FAILED TO TIMELY REPORT CONSENT ORDER 11-7733 BETWEEN SECURITIES ADMINISTRATOR OF THE MAINE OFFICE OF SECURITIES AND MR. LINDELL DATED APRIL 22, 2013.

Consent

Civil and Administrative Penalty(ies)/Fine(s)

$500.00

MAINE OFFICE OF SECURITIES

LINDELL ENGAGED IN UNLICENSED ACTIVITY AS AN INVESTMENT ADVISER REPRESENTATIVE FOR REVERE SECURITIES CORP. BY (A) PROVIDING DISCRETIONARY FEE-BASED INVESTMENT ADVISORY SERVICES TO AT LEAST NINE REVERE CLIENTS; (B) PREPARING A FINANCIAL PLAN FOR COMPENSATION; AND (C) RECEIVING COMPENSATION FOR HIS SOLICITATION OF AT LEAST 16 MAINE CLIENTS FOR A 3RD-PARTY ADVISER.

Order

Civil and Administrative Penalty(ies)/Fine(s)

$15,000.00

LINDELL WILL ALSO BE SUBJECT TO THE HEIGHTENED SUPERVISION RESTRICTIONS (HSR) AS SET FORTH IN THE CONSENT ORDER (ORDER). LINDELL'S CURRENT AGENT LICENSE IN MAINE WILL BE SUBJECT TO HSR FOR TWO YEARS FROM THE DATE OF THE SIGNED ORDER. ANY FUTURE ISSUANCE OF AN INVESTMENT ADVISER REPRESENTATIVE (IAR) LICENSE IN MAINE WILL BE SUBJECT TO HSR FOR A TWO-YEAR PERIOD FROM THE DATE OF LICENSURE. ANY BREAK IN LICENSURE AS AN AGENT OR IAR IN MAINE WILL TOLL THE EXPIRATION OF THE CORRESPONDING TWO-YEAR PERIOD OF HSR.

NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT

**07/01/2002** CHARGE I R. KENNETH LINDELL, BY REASON OF THE FACTS SET FORTH IN THE STATEMENT OF FACTS AND EXPLANATION, VIOLATED EXCHANGE RULE 476(A), IN THAT HE ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE, BY MAKING FALSE REPRESENTATIONS TO A CUSTOMER OF HIS MEMBER FIRM EMPLOYER REGARDING THE CUSTOMER?S ACCOUNT VALUE, AND IS THEREFORE SUBJECT TO DISCIPLINE PURSUANT TO EXCHANGE RULE 476(A). CHARGE II VIOLATED EXCHANGE RULE 476(A), IN THAT HE ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE, BY PROVIDING A CUSTOMER WITH REPORTS WHICH CONTAINED FALSE AND MISLEADING INFORMATION REGARDING THE CUSTOMER?S ACCOUNT, CHARGE III VIOLATED EXCHANGE RULE 476(A), IN THAT HE ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE, BY EFFECTING ONE OR MORE TRANSACTIONS IN A CUSTOMER?S ACCOUNT WITHOUT THE CUSTOMER?S AUTHORIZATION, CHARGE IV VIOLATED EXCHANGE RULE 476(A), IN THAT HE ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE, BY FAILING TO FOLLOW A CUSTOMER?S INSTRUCTIONS TO OPEN AN ACCOUNT FOR THE CUSTOMER?S WIFE, CHARGE V CAUSED A VIOLATION OF EXCHANGE RULE 440, AND SEC REGULATION 240.17A-3, BY ALTERING PORTFOLIO ANALYSIS REPORTS TO CONTAIN FALSE AND MISLEADING INFORMATION, CHARGE VI VIOLATED EXCHANGE RULE 352(C), IN THAT HE OFFERED TO SHARE IN THE LOSSES OF A CUSTOMER ACCOUNT, CHARGE VII VIOLATED EXCHANGE RULE 346(B), IN THAT HE RECEIVED COMPENSATION FOR OUTSIDE EMPLOYMENT WITHOUT WRITTEN CONSENT FROM HIS MEMBER FIRM EMPLOYER, AND IS THEREFORE SUBJECT TO DISCIPLINE PURSUANT TO EXCHANGE RULE 476(A).

Decision

Censure

Bar

**02/11/2003** HPD# 02-222 ISSUED BY NYSE HEARING PANEL THE HEARING PANEL FOUND THAT MR. LINDELL VIOLATED EXCHANGE RULE 476(A) IN THAT HE ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE, BY PROVIDING A CUSTOMER REPORTS WHICH CONTAINED MISLEADING INFORMATION REGARDING THE CUSTOMER'S ACCOUNT. THE HEARING PANEL FOUND MR. LINDELL NOT GUILTY OF: MAKING FALSE REPRESENTATIONS TO A CUSTOMER; PROVIDING A CUSTOMER WITH REPORTS THAT CONTAINED FALSE INFORMATION; EFFECTING ONE OR MORE UNAUTHORIZED TRANSACTION; FAILING TO FOLLOW A CUSTOMER'S INSTRUCTIONS; CAUSING A VIOLATION OF EXCHANGE RULE 440 AND SEC REGULATION 240.17A-3; AND VIOLATING EXCHANGE RULE 352(C). PENALTY: CENSURE AND A THREE WEEK BAR.

BECAUSE OF THE STATE OF MAINE'S REGUALTORY ACTION AGAINST MR LINDELL, THE NYSE OPENED ITS OWN INVESTIGATION INTO SIMILIAR CHARGES REGARDING THE SAME CLIENT, AND IN THAT INVESTIGATION HAS ALLEGED OTHER CHARGES NOT PREVIOUSLY INCLUDED IN THE STATE OF MAINE'S REGULATORY ACTION. LINDELL VIGOROUSLY DENIES ALL THESE CHARGES AND HAS REJECTED AN OFFER TO SETTLE THE MATTER. LINDELL INTENDS TO FIGHT THE CHARGES AT A FORMAL NYSE HEARING. THE FINAL DECISION OF THE NYSE WAS OUT OF THE 7 INITIAL CHARGES, 6 WERE DISMISSED AND MR. LINDELL WAS FOUND GUILY OF PROVIDING CUSTOMER WITH REPORTS THAT WERE MISLEADING BY NOT MARKING THE DOCUMENTS AS HYPOTHETICAL ILLUSTRATIONS, ALTHOUGH IT WAS THE OPINION OF THE PANEL THAT MR. LINDELL DID ON NUMEROUS OCCASIONS ATTEMPT TO EXPLAIN TO THE CLIENT THAT THEY WERE. ALSO, THE REPORT IN QUESTION WAS GENERATED BY MR. LINDELL'S FORMER B/D'S INHOUSE SYSTEM.

MAINE OFFICE OF SECURITIES

THE OFFICE OF SECURITIES HAS ISSUED A NOTICE OF INTENT TO REVOKE A SALES REPRESENTATIVE LICENSE, TO BAR FROM ASSOCIATION AND TO IMPOSE A CIVIL PENALTY BASED ON ALLEGATIONS THAT MR. LINDELL MADE UNTRUE STATEMENTS OF A MATERIAL FACT AND COMMITTED FRAUD AND DECEIT IN CONNECTION WITH THE OFFER, SALE AND PURCHASE OF SECURITIES. THE ALLEGATIONS ARE BASED ON MR. LINDELL'S USE OF FICTITIOUS ACCOUNT STATEMENTS.

Order

Suspension

RESTRICTIONS ON SALES REPRESENTATIVE AND INVESTMENT ADVISER LICENSES FOR A 2-YEAR PERIOD.

MR. LINDELL SIGNED A CONSENT ORDER IN WHICH HE NEITHER ADMITS NOR DENIES THE ALLEGATIONS CONTAINED IN THE NOTICE OF INTENT ISSUED BY THE OFFICE OF SECURITIES ON OCTOBER 23, 2001. MR. LINDELL CONSENTED TO THE SUSPENSION OF HIS LICENSE FOR 3 MONTHS, BEGINNING ON SEPTEMBER 27, 2001 AND ENDING ON DECEMBER 27, 2001. IN ADDITION, MR. LINDELL'S SALES REPRESENTATIVE LICENSE AND QUALIFICATIONS TO ACT AS A REPRESENTATIVE FOR AN INVESTMENT ADVISER SHALL BE RESTRICTED FOR A 2-YEAR PERIOD. MR. LINDELL'S RESTRICTIONS INCLUDE: A) WILL NOT ACT IN PRINCIPAL, SUPERVISORY, OR MANAGERIAL CAPACITY FOR A BROKER-DEALER OR INVESTMENT ADVISER; B) WILL REPORT ALL COMPLAINTS AND INVESTIGATIONS TO OFFICE OF SECURITIES; C) WILL NOT EXERCISE DISCRETIONARY AUTHORITY WITHOUT CONSENT OF THE OFFICE OF SECURITIES; D) WILL WORK UNDER ENHANCED SUPERVISION; E) WILL KEEP THE OFFICE OF SECURITIES ADVISED OF THE NAME OF HIS SUPERVISOR; AND F) ALL ACCOUNTS WILL BE SUBJECT TO APPROVAL BY BRANCH MANAGER OR PRINCIPAL AT BROKER-DEALER OR INVESTMENT ADVISER.

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS CONTAINED IN THE NOTICE, LINDELL AGREED TO A THREE MONTH SUSPENSION RETROACTIVE TO THE DATE OF HIS TERMINATION FROM EDWARD JONES, AS WELL AS 2 YEARS OF ENHANCED SUPERVISION.