South Florida Arbitration & Litigation Lawyer Blog
In the Matter of Scott E. Johnson
On October 15, 2012, the Securities and Exchange Commission (Commission) issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) against Scott E. Johnson (Johnson).
In the Order, the Division of Enforcement found that Scott Johnson was the owner and operator of Income Spread Trader, an internet based company, and Saar Asset Management, both Minnesota-based companies. The Order also states that on December 6, 2011, Johnson pleaded guilty to one count of unlawful securities transactions and six counts of theft before the District Court for the Fourth Judicial District in Hennepin County, Minnesota, in State of Minnesota v. Scott Ernest Johnson, 27-CR-11-23635. On February 9, 2012, a judgment in the criminal case was entered against Johnson. He was sentenced to a prison term of 18 months and ordered to make restitution in the amount of more than $630,000. The Order states that the counts of the criminal information to which Johnson pleaded guilty alleged, inter alia, that Johnson committed several acts of felonious theft, while transacting business as a securities broker without having registered to conduct such business under the Minnesota Securities Act.
Based on the above, the Order bars Johnson from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Johnson consented to the issuance of the Order.