In December 2014, we
posted a blog regarding former broker Frederick V. McMenimen III, who previously received
a cease of desist order after allegations of misconduct. Now, the
SEC has instituted administrative proceedings against McMenimen.
The SEC order states that McMenimen submitted an Offer of Settlement that
was accepted by the Commission. The Offer includes the following sanctions:
- McMenimen is barred from association with any broker, investment adviser,
dealer, municipal securities dealer, transfer agent, municipal advisor,
or nationally recognized statistical rating organization.
- McMenimen is barred from participating in any offering of a penny stock,
including acting as a finder, promoter, agent, consultant, or other person
engaging in activities with a broker, dealer, or issuer for purposes of
penny stock trading or issuance, or inducing or attempting to induce the
sale or purchase of penny stocks.
Per initial allegations from the New Hampshire Bureau of Securities Regulation,
McMenimen recommended that three elderly and widowed clients invest in
a company called “PSB,” but he did not disclose that it was
a sporting goods store he owned. The investments were deposited into the
PSB bank account and withdrawn by McMenimen to use for his own personal
expenses. McMenimen pleaded guilty on October 31, 2014 to one count of
money laundering, three counts of tax evasion, and one count of mail fraud;
all charges related to the alleged misconduct. He was also order to pay
$1,443,749 in restitution.
Currently serving more than 10 years in Fort Dix Federal Correctional Institution,
McMenimen’s initial order included a cease and desist from further
violations, a licensure bar, denial, suspension, and revocation of licensing
and registration privileges, and a $20,000 fine.
If you have invested with former broker Frederick V. McMenimen and lost
money, our securities lawyers offer
free case evaluations so you can discuss legal options. Call Meyer Wilson today.