UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-78518/IA Release 4475/August 9, 2016: 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 Merle G. Walter. On March 11, 2013, the District Court, Denver County, Colorado, in Case No. 2012CV2181, entered an order against Walter barring him from, among other things, associating with any broker-dealer or investment adviser doing business in Colorado.

Order

Bar (Permanent)

Investment adviser, broker, dealer, municipal securities dealer, or transfer agent

Indefinite

8/9/2016

Participating in any offering of a penny stock

Indefinite

8/9/2016

FINRA

FINRA BY-LAWS ARTICLE V, SECTION 2(C), FINRA RULES 1122, 2010, 3240, NASD RULES 2110, 2370, 3030, AND INTERPRETATIVE MATERIAL-1000-1: WALTER WILLFULLY FAILED TO AMEND HIS FORM U4 TO DISCLOSE SEVEN UNSATISFIED CIVIL JUDGMENTS AND A FEDERAL TAX LIEN IMPOSED AGAINST HIM, FROM THE TIME HE FIRST BECAME AWARE OF THEM THROUGH THE TIME WHEN HIS REGISTRATION WITH HIS MEMBER FIRM WAS TERMINATED. WALTER'S FAILURE TO DISCLOSE THE TAX LIEN AND JUDGMENTS WAS AGGRAVATED BY THE FACT THAT HE COMPLETED AN ANNUAL CERTIFICATION WHEREIN HE FALSELY REPRESENTED THAT THERE WERE NO CHANGES TO THE INFORMATION ON HIS FORM U4 AND THAT HE HAD NOT BEEN NAMED IN ANY LAWSUITS. WALTER BORROWED APPROXIMATELY $191,000 FROM FOUR FIRM CUSTOMERS, AND HE DID NOT PROVIDE WRITTEN NOTICE TO, OR RECEIVE WRITTEN AUTHORIZATION FROM THE FIRM TO BORROW FROM THE CUSTOMERS, IN VIOLATION OF THE FIRM'S POLICIES AND PROCEDURES. WALTER'S CONDUCT IS AGGRAVATED BY THE FACT THAT HE RESPONDED UNTRUTHFULLY TO THE BORROWING QUESTIONS CONTAINED IN HIS ANNUAL CERTIFICATION. WALTER ENGAGED IN AN OUTSIDE BUSINESS ACTIVITY, OUTSIDE THE SCOPE OF HIS EMPLOYMENT WITH HIS FIRM, WITHOUT PROVIDING NOTICE TO HIS FIRM OF THIS BUSINESS ACTIVITY. WALTER CHARGED AN ELDERLY CUSTOMER AND HER TWO COMPANIES A TOTAL OF $75,000 FOR ADVISORY/CONSULTING SERVICES PROVIDED. WALTER BEGAN CHARGING OTHER FIRM CUSTOMERS A FLAT FEE FOR SIMILAR SERVICES. THE TYPICAL FEE CHARGED BY WALTER WAS $2,500 ANNUALLY. WALTER RECEIVED IN EXCESS OF $50,000 IN COMPENSATION FROM THIS ACTIVITY. WALTER ENGAGED IN UNETHICAL CONDUCT WITH RESPECT TO HIS HANDLING OF AN ELDERLY CUSTOMER'S ACCOUNTS. FOR FOUR YEARS, WALTER CHARGED THE CUSTOMER'S ACCOUNTS EXCESSIVE ADVISORY/CONSULTING FEES. IN ONE YEAR, WALTER DOUBLE-BILLED TWO OF HER ACCOUNTS FOR SUCH SERVICES. WALTER THEN FAILED TO EITHER PROVIDE SERVICES FOR THE ADVISORY/CONSULTING FEES THAT HAD BEEN PAID FOR OR REFUND THE SAME.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

3/11/2013

WITHOUT ADMITTING OR DENYING THE FINDINGS, WALTER CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. RESPONDENT WAS GRANTED A DISCHARGE IN BANKRUPTCY UNDER SECTION 727 OF TITLE 11, UNITED STATES CODE. ACCORDINGLY, NO MONETARY SANCTION IS BEING ASSESSED IN THIS MATTER. RESPONDENT UNDERSTANDS THAT THIS SETTLEMENT INCLUDES A FINDING THAT HE WILLFULLY OMITTED TO STATE A MATERIAL FACT ON A FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF FINRA'S BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER FIRM.

COLORADO DIVISION OF SECURITIES

WALTER BORROWED FUNDS FROM HIS CLIENTS

Consent

Monetary Penalty other than Fines

Injunction

PAY $36,000.00 TO PRIOR CLIENTS BY 09/16/2013

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

10-28-99, DISTRICT NO. 3 ACCEPTED THE LETTER OF AWC ON OCTOBER 25, 1999 WHEREBY WALTER IS FINED $7,500 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 10 DAYS. WALTER ENGAGED IN PRIVATE SECURITIES TRANSACTIONS WITHOUT GIVING HIS MEMBER FIRM PRIOR WRITTEN NOTICE OF HIS ACTIVITIES. [NASD RULES 2110,3040]

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$7,500.00

Suspension

SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 10 DAYS. ** $7,500.00 FINE PAID IN FULL ON 05/18/2001 (INVOICE NO. 99-3A-895).

LETTER OF ACCEPTANCE WAIVER & CONSENT APPROVED BY NASD

STOLE TIRES FROM HIS SERVICE STATION

I PAID THE OWNER THE COST OF THE TIRES. $25.00 COURT COSTS.

I PURCHASED THE TIRES FROM A FELLOW STUDENT ALSO AN EMPLOYEE OF THE OWNER OF THE SERVICE STATION. STUDENT/EMPLOYEE LEFT AREA AND I WAS UNABLE TO LOCATE OF THE SERVICE STATION. STUDENT/EMPLOYEE LEFT AREA AND I WAS UNABLE TO LOCATE HIM. I PAID THE OWNER FOR THE TIRES.