U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20696 / August 28, 2008

Securities and Exchange Commission v. Mark E. Salyer, et al., Case No.:2:08-CV-179 (E.D. TN June 23, 2008)

SEC Files Enforcement Action Against Mark E. Salyer, a Registered Representative, Relating to His Misappropriation of Millions of Dollars from Customers of MetLife Securities, Inc.

On June 23, 2008, the Securities Exchange Commission ("Commission") filed a civil injunctive action against Mark E. Salyer alleging violations of the antifraud provisions of the federal securities laws in connection with his misappropriation of millions of dollars from customers of MetLife Securities, Inc. while he was employed there as a registered representative. Salmar Investors Group, Inc and Horizon Holdings, Inc., two companies purportedly controlled by Salyer, were also named as relief defendants because they received funds fraudulently diverted by Salyer from several MetLife customer accounts.

The Commission's complaint alleges that, from at least June 2005 through October 2007, Salyer diverted approximately $6 million from MetLife customer accounts to multiple entities, two of which he directly controls. According to the complaint, Salyer diverted the money by forging customer signatures on wire transfer forms and by convincing customers to invest in a company he controlled under the guise that it was a MetLife investment. The complaint further alleges that to facilitate and otherwise conceal his fraud, Salyer falsified customer brokerage account statements or provided customers with fraudulent explanations for discrepancies in the account balances reflected in their account statements. The complaint alleges that Salyer defrauded at least 33 customers, most of whom are senior citizens who had long-standing business relationships with Salyer.

The Commission's complaint charges Salyer with violating Section 17 (a) of the Securities Act of 1993, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10(b) thereunder. The complaint seeks disgorgement of all ill-gotten gains, a permanent injunction prohibiting future violations of the securities laws and civil money penalties against Salyer.

http://www.sec.gov/litigation/litreleases/2008/lr20696.htm