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UNITED STATES OF AMERICA
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In the Matter of GARY L. ATNIP, CPA, Respondent. |
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ORDER OF SUSPENSION PURSUANT TO RULE 102(e)(2) OF THE COMMISSION'S RULES OF PRACTICE |
The Securities and Exchange Commission ("Commission") deems it appropriate to issue an order of forthwith suspension of Gary L. Atnip ("Atnip") pursuant to Rule 102(e)(2) of the Commission's Rules of Practice [17 C.F.R. § 200.102(e)(2)].1
The Commission finds that:
1. Atnip is a certified public accountant in Tennessee.
2. On June 19, 2003, a judgment of conviction was entered against Atnip in United States v. Gary L. Atnip, 3:99CR235 (EBB), in the United States District Court for the District of Connecticut, finding him guilty of one count of money laundering in violation of 18 U.S.C. § 1962(d) and one count of racketeering in violation of 18 U.S.C. § 1956(a)(2). Atnip was convicted based on entering guilty pleas. In connection with his guilty pleas, Atnip stipulated to the following: (1) Atnip assisted Martin Frankel ("Frankel") in researching the purchase of Franklin American Corporation ("FAC"), a publicly traded corporation and owner of subsidiary life insurance companies; (2) in October 1991, the Thunor Trust ("Thunor"), a trust Frankel controlled, acquired FAC; (3) following Thunor's acquisition of FAC, Atnip became FAC's Chief Financial Officer and Treasurer; (4) acting at Frankel's direction, Atnip arranged for certain assets that were controlled by FAC and its subsidiary life insurance companies to be liquidated and transferred to Liberty National Securities, Inc. ("LNS"), a registered broker-dealer; (5) Atnip knew that Frankel exercised a significant degree of control over the assets transferred to LNS, but he concealed Frankel's role from federal regulators; and (6) Atnip knew that the identity of the person controlling Thunor was a material fact that should have been disclosed on forms filed with the Commission.2
3. As a result of this conviction, Atnip was sentenced to 121 months imprisonment in a federal penitentiary and ordered to pay restitution in the amount of $208,000,000.
In view of the foregoing, the Commission finds that Atnip has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission's Rules of Practice.
Accordingly, IT IS ORDERED, that Gary L. Atnip is forthwith suspended from appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice.
By the Commission.
| Jonathan G. Katz Secretary |
| 1 | Rule 102(e)(2) provides in pertinent part: "Any ... person who has been convicted of a felony or a misdemeanor involving moral turpitude shall be forthwith suspended from appearing or practicing before the Commission." |
| 2 | On February 6, 2001, the Commission filed a complaint alleging, among other things, that Atnip participated in Frankel's fraud. On March 12, 2002, as a result of the conduct alleged in the Commission's complaint, Atnip was permanently enjoined from violating Sections 10(b), 13(a), 13(b), and 14(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-2 and 14a-9, and barred from acting as a director or officer of a public company. SEC v. Martin R. Frankel, et al., 3:00-CV-1778 (EBB) (D. Conn. Mar. 12, 2002). |
http://www.sec.gov/litigation/admin/34-48341.htm
| Home | Previous Page | Modified: 08/14/2003 |