UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-81279, IA Release 4737 / August 1, 2017: The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Bradley T. Smegal ("Smegal" or "Respondent"). On the basis of this Order and Respondent's Offer, the Commission finds that on August 11, 2016, Smegal pleaded guilty to two counts of securities fraud, in violation of Title 15, United States Code, Sections 77q(a) and 77x in the criminal case entitled U.S. v. Smegal, No. 16-cr-00192-DSD, in the United States District Court for the District of Minnesota. The court accepted Smegal's guilty plea and, on April 26, 2017, a judgment in the criminal case was entered against Smegal. He was sentenced to six years in prison and ordered to pay $4,978,195.35 in restitution.

Order

Bar (Permanent)

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

Indefinite

8/1/2017

from participating in any offering of a penny stock

Indefinite

8/1/2017

securities fraud

Convicted

FINRA

RESPONDENT SMEGAL FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION.

LETTER

Bar (Permanent)

All Capacities

Indefinite

5/31/2012

PURSUANT TO FINRA RULE 9552(H) AND IN ACCORDANCE WITH FINRA'S NOTICE OF SUSPENSION AND SUSPENSION FROM ASSOCIATION LETTERS DATED FEBRUARY 28, 2012 AND MARCH 26, 2012, RESPECTIVELY, ON MAY 31, 2012, SMEGAL IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. 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 ANY CAPACITY.