This is related to an already know and previously reported issue with Coggeshall. 2005-2017. Omissions of material information, dishonest and unethical practices, unsuitable recommendations, negligent behavior

$1,000,000.00

$95,000.00

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 Conrad A. Coggeshall ("Respondent" or "Coggeshall"). The Commission finds that on March 20, 2020, a judgment was entered by consent against Coggeshall, permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Conrad A. Coggeshall, et al., No. CV-19-05667-PHXSMB, in the United States District Court for the District of Arizona. The Commission's complaint alleged that, between April 2017 and May 2018, Coggeshall defrauded elderly investors in a company he called BOTR, LLC. According to the complaint, Coggeshall made multiple misrepresentations to investors, including that they were investing in BOTR, LLC, a successful mergers and acquisition firm based in New York, their investments were safe and insured, and they would receive periodic interest payments at a high, fixed rate. The complaint alleged that Coggeshall instead deposited investors' funds into brokerage and bank accounts in the name of an entity that he owned and that did not engage in mergers or acquisitions. According to the complaint, Coggeshall used investor funds to trade securities, incurring significant losses, and to pay personal expenses and to make payments to investors. In view of the allegations made by the Division of Enforcement, the Commission deems it necessary and appropriate in the public interest that public administrative proceedings be instituted to determine: whether the allegations set forth hereof are true and, in connection therewith, to afford Respondent an opportunity to establish any defenses to such allegations; what, if any, remedial action is appropriate in the public interest against Respondent pursuant to Section 15(b) of the Exchange Act; and what, if any, remedial action is appropriate in the public interest against Respondent pursuant to Section 203(f) of the Advisers Act.

Order

Bar (Permanent)

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

Indefinite

5/10/2023

Claimants allege their registered representative recommended fraudulent and unsuitable investments.

$1,812,600.00

$75,000.00

This was all filed through FINRA arbitration. The allegations covered a broad time range from roughly 2009 through 2018 and allegedly involved multiple broker dealers. Allegations were that investments were fake and gains were used for Coggeshall's personal benefit.

$2,812,600.00

$224,300.00

FINRA

Respondent Coggeshall failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

8/7/2020

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated May 4, 2020 and May 28, 2020, respectively, on August 7, 2020, Coggeshall 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.

Arizona Corporation Commission - Securities Division

Coggeshall violated ARS 44-1841, by selling or offering securities that were neither registered nor exempt from registration ARS 44-1842, by offering or selling securities while neither registered as a dealer or salesman nor exempt from registration, ARS 44-1991, fraud in connection with the sale of securities, ARS 44-1999, control person liability, ARS 44-3151, by transacting business in Arizona as an Investment Adviser or as an Investment Adviser Representative while not licensed in compliance with Article 4 of the IM act, 44-3241, fraud in provision of Investment advisory services.

Default

Cease and Desist

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

$150,000.00

Restitution

$4,524,873.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

According to SEC litigation release, the SEC filed a complaint against Coggeshall, charging him with violations of Section 17(a) of the '33 Act and Section 10(b) and Rule 10b-5 of the '34 Act.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Litigation Release No. 24673 / November 25, 2019: The Securities and Exchange Commission announced charges against an Arizona resident for fraudulently raising $700,000 from elderly investors between April 2017 and May 2018. According to the SEC's complaint, Conrad Coggeshall of Scottsdale, Arizona told investors that they were investing in Business Owners Tax Relief, LLC, a successful mergers and acquisitions firm based in New York that would pay investors periodic interest at fixed rates. Instead, the complaint alleges that no such firm existed and Coggeshall deposited investors' funds into brokerage and bank accounts for an Arizona company he owns with the same name. Coggeshall allegedly used those funds to trade securities, incurring significant losses, and to pay personal expenses, including the rent for his apartment. The complaint further alleges that Coggeshall also used funds from these accounts to make payments to investors, which he falsely represented were interest payments from the New York mergers and acquisitions firm. The SEC's complaint charges Coggeshall with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Judgment Rendered

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

Disgorgement

$592,546.00

Monetary Penalty other than Fines

Injunction