Sentry Management Inc

Allegations: SENTRY MANAGEMENT,INC.(SMI) IS REGISTERED & REGULATED BY THE SEC, HOWEVER, SMI ALSO REGISTERS BY NOTIFICATION WITH THE TEXAS STATE SECURITIES BOARD(THE BOARD). BEGINNING DEC.31, 2002, THE SEC REQUIRED ALL ADVISERS TO FILE ELECTRONICALLY ONLY THEN REDISTRIBUTE THE FILING TO CO-REGISTERING AGENCIES(THE BOARD). WE CONTINUED TO TIMELY FILE AND REGISTER EACH YEAR (03-05) WITH THE SEC ASSUMING ALL OUR FILINGS WERE PASSED ON TO CO-REGISTRATION AGENCIES(THE BOARD). WE RECEIVED CORRESPONDENCE FROM THE BOARD ON MAY 18, 2006 THAT WHILE THE FIRM'S REGISTRATION INFORMATION HAD BEEN PASSED ON TO THE BOARD, THE REQUIRED INFORMATION ON THE FIRM'S INVESTMENT ADVISERS HAD NOT BEEN TRANSMITTED. THIS MEANT THAT THE COMPANY WAS REGISTERED, BUT THE ADVISERS WERE NOT FOR THE 3 YEARS SINCE THE REQUIRED ELECTRONIC FILING. THE NON-FILING(REGISTRATION) WITH THE STATE WAS DIRECTLY ATTRIBUTABLE TO A PROBLEM WITH THE ELECTRONIC FILING CONVERSION. EVEN THOUGH WE HAVE BEEN TIMELY FILING EACH YEAR, THE COMPUTER SYSTEM HAS NOT BEEN SENDING THE INFORMATION ON TO THE BOARD. THE FOLLOWING IS ALSO MATERIAL: 1. WE RECEIVED A NOTICE FROM THE BOARD, DATED OCT.24, 2002, WHICH STATED RENEWAL NOTICES WOULD NO LONGER BE MAILED TO OUR FIRM, "ALL FEES DUE FOR RENEWAL WILL BE COLLECTED BY THE NASD THROUGH THE CRD/IARD SYSTEMS," AND "NOTICE FILED INVESTMENT ADVISERS WILL NO LONGER RECEIVE CERTIFICATES OF AUTHORIZATION." 2. SINCE THE 2002 NOTICE WAS CONSISTENT WITH THE "ELECTRONIC-ONLY" SEC FILING, WE TOOK NO ADDITIONAL ACTION AND FELT WE WERE IN FULL COMPLIANCE WITH ALL APPLICABLE REGISTRATION REQUIREMENTS. WE DO NOT DISAGREE WITH THE "FINDINGS OF FACTS" BY THE BOARD, HOWEVER, WE STRONGLY DISAGREE WITH THE STATE'S REPRIMAND FOR AN UNINTENTIONAL AND WIDESPREAD ELECTRONIC CONVERSION PROBLEM IN TEXAS. I REQUESTED THAT NO ORDER BE PLACED AGAINST OUR RESPECTIVE NAMES FOR THIS CLEARLY CONFUSING TRANSITION FROM MAIL FILINGS TO COMPULSORY ONLINE FILLINGS, BUT THE BOARD CHOSE TO ISSUE THE ORDER. Status: Final Sanction Detail: NONE Summary: NO SANCTIONS. SEE ITEM II.7 FOR SUMMARY DETAILS.