On September 29, 2009 the Securities Exchange Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933, Sections 15(b) and 21C of the Securities Exchange Act of 1934, and Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (Order) against United Global Securities, Inc. and Richard D. Blair. The Order finds that United Global Securities, Inc. and Richard D. Blair, 39, of Sugar Land, Texas, engaged in the improper switching of variable annuities by convincing 17 customers to surrender variable annuities and repurchase new variable annuities twice within an 18 month period beginning in late 2004. Additionally, the Order finds that Blair caused United Global to maintain inaccurate books and records and operate with a net capital deficiency in January and February 2007.
The Order: (i) requires United Global to cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act, Sections 15(c)(3)(A) and 17(a)(1) of the Exchange Act and Rules 15c3-1, 17a-3(a), and 17a-11 thereunder, and Section 206(2) of the Advisers Act; (ii) requires Blair to cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act and Section 206(2) of the Advisers Act; (iii) requires Blair to cease and desist from causing any violations and any future violations by United Global of Sections 15(c)(3)(A) and 17(a)(1) of the Exchange Act and Rules 15c3-1, 17a-3(a), and 17a-11 thereunder; (iv) censures United Global and Blair; (v) requires United Global and Blair, jointly and severally, to pay a $25,000 civil money penalty; and (vi) requires United Global and Blair to comply with undertakings. (Rels. 33-9066; 34-60732; IA-2928; File No. 3-13630).
If you have questions about investments you made with United Global Securities or Richard D. Blair, or if you believe that you have been the victim of a securities fraud, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago office at 312-238-9650 for a free consultation.
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