UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-73129; IA RELEASE 40-3921 / SEPTEMBER 17, 2014: THE SECURITIES AND EXCHANGE 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 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 AGAINST JEREMY MICHAEL HART ("HART" OR "RESPONDENT"). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (THE "OFFER") WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION IS A PARTY, RESPONDENT ADMITS THE COMMISSION'S JURISDICTION OVER HIM AND THE SUBJECT MATTER OF THESE PROCEEDINGS AND THE FINDINGS, AND CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS. ON NOVEMBER 29, 2010, HART PLED GUILTY TO ONE COUNT OF SECURITIES FRAUD IN VIOLATION OF COLO. REV. STAT. § 11-51-501(1)(C), A CLASS THREE FELONY, AND ONE COUNT OF THEFT IN VIOLATION OF COLO. REV. STAT. § 18-4-401(1) AND (2)(D), A CLASS THREE FELONY, BEFORE THE DISTRICT COURT, LARIMER COUNTY, COLORADO, IN CASE NO. 2010CR000752. ON JANUARY 21, 2011, A JUDGMENT IN THE CRIMINAL CASE WAS ENTERED AGAINST HART. HART WAS SENTENCED TO SERVE NINE YEARS OF INCARCERATION AND ORDERED TO PAY RESTITUTION IN THE AMOUNT OF $3,486,852.61.

Order

Bar (Permanent)

SEE COMMENT

9/17/2014

FINRA

FINRA RULES 2010, 8210, NASD RULES 2110, 2330, 3040 - JEREMY HART PARTICIPATED IN THE SALES OF UNSECURED PROMISSORY NOTES WITH AN APPROXIMATE AGGREGATE VALUE OF $1,347,000 TO FIRM AND NON-FIRM CUSTOMERS FOR WHICH HE AND HIS RELATED ENTITIES RECEIVED NET PROCEEDS OF $845,350. HART CREATED A COMPANY THROUGH WHICH HE SOLD PROMISSORY NOTES WITH AN APPROXIMATE AGGREGATE VALUE OF $1,434,000 TO FIRM AND NON-FIRM CUSTOMERS. THE PROMISSORY NOTES FOR BOTH ENTITIES WERE UNREGISTERED SECURITIES WHICH HART REPRESENTED AS BEING SAFE AND RISK FREE ALTHOUGH NONE OF THE INVESTORS WHOSE NOTES HAVE MATURED RECEIVED A RETURN OF PRINCIPAL AS PROMISED AND HART HAS REPRESENTED THAT NO NOTES WHICH ARE TO MATURE IN THE FUTURE WILL BE REPAID. THE PROMISSORY NOTE TRANSACTIONS IN WHICH HART PARTICIPATED OCCURRED OUTSIDE THE REGULAR COURSE AND SCOPE OF HIS ASSOCIATION WITH HIS MEMBER FIRMS AND HE DID NOT PROVIDE EITHER FIRM WITH PRIOR WRITTEN NOTIFICATION OF THE PROPOSED TRANSACTIONS, HIS PROPOSED ROLE THEREIN AND STATING WHETHER HE HAD RECEIVED, OR MIGHT RECEIVE, SELLING COMPENSATION. CUSTOMERS INVESTED APPROXIMATELY A TOTAL OF $1,039,773 WITH HART, BELIEVING THEY WERE INVESTING IN AN ANNUITY, BANK PRODUCT, BONDS, A FUND, OR A MONEY MARKET ACCOUNT WHEN THE FUNDS WERE ACTUALLY USED TO ASSIST HART'S ENTITIES WITH THEIR OPERATIONS OR TO PURCHASE A PROMISSORY NOTE. BECAUSE HART FAILED TO INVEST CUSTOMER FUNDS AS INTENDED, HE MADE IMPROPER USE OF THEIR FUNDS. HART FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS, IMPEDING FINRA'S INVESTIGATION OF HIS PRIVATE SECURITIES TRANSACTIONS, OUTSIDE BUSINESS ACTIVITIES, MISUSE AND/OR CONVERSION OF CUSTOMER AND NON-CUSTOMER FUNDS AND HIS POSSIBLE FRAUDULENT CONDUCT.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

6/8/2012

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, HART CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

FINRA

RESPONDENT HART FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

2/2/2012

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS AND FINRA RULE 9554, RESPONDENT HART IS SUSPENDED FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

FINRA

RESPONDENT JEREMY MICHAEL HART FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

6/6/2011

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS AND FINRA RULE 9554, RESPONDENT HART IS SUSPENDED JUNE 6, 2011 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Suitability; negligence; breach of fiduciary duties; common law fraud; negligent misrepresentation; violation of the Colorado Securities Act; violation of the Federal Securities Laws; violation of the Colorado Organized Crime Control Act; and violation of the Colorado Consumer Protection Act.

$1,894,114.00

The Award has not been paid.

UNSUITABILITY, BREACH OF FIDUCIARY DUTY, AND BREACH OF DUTY OF DUE CARE

$2,109,523.00

The Award has not been paid.