Gunn & Company Investment Management, Inc.

Event Detail: ON 6/29/20 THE SEC ENTERED A FINAL JUDGMENT AGAINST MR. GUNN RESTRAINING AND ENJOINING HIM FROM VIOLATING SECTION 10(B) AND 15(A) OF THE EXCHANGE ACT AND RULE 10B-5, SECTION 17(A) AND SECTION 5 OF THE SECURITIES ACT AND FOUND THAT HE MADE FALSE AND MISLEADING STATEMENTS REGARDING A FALSE CMO TRADING PROGRAM. COUNT I - BASED ON THE FOREGOING, MR. GUNN ALLEGEDLY VIOLATED SECTION 473.323(1)(G), FLORIDA STATUTES (2022), BY COMMITTING AN ACT OF FRAUD, DECEIT, NEGLIGENCE, INCOMPETENCY, OR MISCONDUCT BY MAKING FALSE AND MISLEADING STATEMENTS REGARDING A NON-EXISTENT CMO TRADING PROGRAM. THIS IS A MISDEMEANOR. COUNT II - BASED ON THE FOREGOING, MR. GUNN ALLEGEDLY VIOLATED SECTION 473.323(1)(A), FLORIDA STATUTES, THROUGH A VIOLATION OF SECTION 455.227(1)(F) FOR HAVING HIS RIGHT TO PRACTICE BEFORE THE SEC RETAINED AND ENJOINED AS WELL AS BEING ORDERED TO PAY DISGORGEMENT. THIS IS A MISDEMEANOR. MR. GUNN DISPUTED THE ALLEGATIONS OF MATERIAL FACT AND ATTENDED AN INFORMAL HEARING ON 2/9/24. Status: Final Disposition: MR. GUNN DISPUTED THE ALLEGATIONS OF MATERIAL FACT AND WAS ISSUED AN INFORMAL HEARING ON 2/9/24. ON THAT DATE THE CHARGES IN COUNT I WERE DISMISSED. ALSO ON THAT DATE THE CHARGES IN COUNT II WERE APPROVED AND MR. GUNN'S CPA LICENSE WAS REPRIMANDED, MR. GUNN WAS ORDERED TO PAY $25,000 IN AN ADMINISTRATIVE FINE AS WELL AS $205.21 IN INVESTIGATIVE COSTS. THE MONIES ARE TO BE PAID WITHIN 30 DAYS OF 3/5/24. Summary: IN DECEMBER 2013, ONE OF GCIM'S SHAREHOLDERS, MARSHALL D. GUNN, JR., WAS PERSONALLY NAMED IN A COMPLAINT BY THE SEC. IN JUNE 2020, THE U.S. DISTRICT COURT FOR THE DISTRICT OF COLORADO ENTERED A FINAL CONSENT JUDGMENT AGAINST MARSHALL D. GUNN, JR., IN CONNECTION WITH HIS ROLE IN A PRIME BANK SCHEME ORCHESTRATED BY DANIEL DIRK CODDINGTON. THE SEC'S COMPLAINT ALLEGES THAT CODDINGTON DEFRAUDED INVESTORS BY SOLICITING INVESTMENTS IN COLLATERALIZED MORTGAGE OBLIGATIONS ("CMO"S). ACCORDING TO THE SEC'S COMPLAINT, GUNN ALLEGEDLY MADE FALSE AND MISLEADING STATEMENTS ABOUT THE TRADING PROGRAM TO SOLICIT INVESTORS. GUNN CONSENTED TO ENTRY OF A FINAL JUDGMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, AND AGREED TO BE PERMANENTLY ENJOINED FROM FUTURE VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE "EXCHANGE ACT") AND RULE 10B-5 THEREUNDER AND THE SECURITIES REGISTRATION PROVISIONS OF SECTIONS 5(A) AND (C) OF THE SECURITIES ACT AND THE BROKER-DEALER REGISTRATION PROVISION OF SECTION 15(A) OF THE EXCHANGE ACT. GUNN AGREED TO PAY DISGORGEMENT OF $197,500, PREJUDGMENT INTEREST OF $33,754 AND A CIVIL PENALTY OF $50,000. AN ADMINISTRATIVE COMPLAINT FROM THE STATE OF FLORIDA NAMING THE ABOVE-MENTIONED VIOLATIONS OF FLORIDA STATUTES FOLLOWED ON 6/15/23. MR. GUNN ATTENDED AN INFORMAL HEARING ON 2/9/24 DURING WHICH TIME COUNT I OF THE ALLEGATIONS WAS DISMISSED AND COUNT II RESULTED IN MR. GUNN'S CPA LICESE BEING REPRIMANDED, MR. GUNN BEING ORDERED TO PAY $25,000 IN ADMINISTRATIVE FINE AS WELL AS $205.21 IN INVESTIGATIVE COSTS.

Allegations: DECEMBER 13, 2013: THE SECURITIES AND EXCHANGE COMMISSION FILED A CIVIL LAWSUIT INJUNCTION ON DECEMBER 12, 2013, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO AGAINST A COLORADO RESIDENT, HIS COMPANY, AND OTHERS WHO CARRIED OUT A PRIME BANK FRAUD THAT RAISED MORE THAN $31 MILLION FROM 2010 THROUGH 2012. THE SEC'S COMPLIANT ALLEGED THAT MARSHALL D. GUNN, AND THE OTHER INDIVIDUAL AND ENTITY DEFENDANTS CLAIMED TO HAVE ACCESS TO SPECIAL PROGRAMS THAT WOULD PROVIDE ANNUAL RETURNS OF MORE THAN 250 PERCENT BY OBTAINING LOANS AGAINST A FINANCIAL INSTRUMENT KNOWN AS A COLLATERALIZED MORTGAGE OBLIGATION, OR CMO, AND THEN INVESTING THE LOAN PROCEEDS IN A PURPORTED CMO TRADING PROGRAM. THE COMPLAINT ALLEGED THAT THE INDIVIDUALS AND ENTITIES NEVER OBTAINED THE LOANS AGAINST CMOS OR PLACED INVESTOR FUNDS IN A CMO TRADING PROGRAM, BUT INSTEAD MISAPPROPRIATED INVESTOR FUNDS FOR THEIR OWN USE. THE COMPLAINT ALSO ALLEGES THAT SEVERAL OF THE DEFENDANTS AIDED AND ABETTED THE FRAUD BY SELLING CMOS HELD FOR THE BENEFIT OF INVESTORS AND FUNNELING THOSE PROCEEDS BACK TO THE COLORADO RESIDENT. THE SEC'S COMPLAINT ALLEGES THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE ANTI-FRAUD PROVISIONS OF THE SECURITIES LAWS IN SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER; AND THAT OTHER DEFENDANTS ALSO AIDED AND ABETTED THESE VIOLATIONS. THE COMPLAINT ALSO ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE SECURITY REGISTRATION PROVISIONS OF THE SECURITIES LAWS IN SECTION 5(A) AND (C) OF THE SECURITIES ACT. ALSO, THE COMPLAINT ALLEGES THAT GUNN, AND OTHER DEFENDANTS VIOLATED SECTION 15(A) OF THE EXCHANGE ACT BY ACTING AS UNREGISTERED BROKER-DEALERS. Status: Final Summary: IN DECEMBER 2013, ONE OF GCIM'S SHAREHOLDERS, MARSHALL D. GUNN, JR., WAS PERSONALLY NAMED IN A COMPLAINT BY THE U.S. SECURITIES AND EXCHANGE COMMISSION. IN JUNE 2020, THE U.S. DISTRICT COURT FOR THE DISTRICT OF COLORADO ENTERED A FINAL CONSENT JUDGMENT AGAINST MARSHALL D. GUNN, JR., IN CONNECTION WITH HIS ROLE IN A PRIME BANK SCHEME ORCHESTRATED BY DANIEL DIRK CODDINGTON. THE SEC'S COMPLAINT ALLEGES THAT CODDINGTON DEFRAUDED INVESTORS BY SOLICITING INVESTMENTS IN COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS). ACCORDING TO THE SEC'S COMPLAINT, GUNN ALLEGEDLY MADE FALSE AND MISLEADING STATEMENTS ABOUT THE TRADING PROGRAM TO SOLICIT INVESTORS. GUNN CONSENTED TO ENTRY OF A FINAL JUDGMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, AND AGREED TO BE PERMANENTLY ENJOINED FROM FUTURE VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER AND THE SECURITIES REGISTRATION PROVISIONS OF SECTIONS 5(A) AND (C) OF THE SECURITIES ACT AND THE BROKER-DEALER REGISTRATION PROVISION OF SECTION 15(A) OF THE EXCHANGE ACT. GUNN AGREED TO PAY DISGORGEMENT OF $197,500, PREJUDGMENT INTEREST OF $33,754 AND A CIVIL PENALTY OF $50,000.

Allegations: THE CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC. (THE "CFP BOARD") ISSED AN ADMINISTRATIVE ORDER OF PERMANENT BAR TO MARSHALL D. GUNN, JR. ON OCTOBER 1, 2021. ON AUGUST 19, 2021 THE CFP BOARD MAILED A COMPLIANT TO MR. GUNN FOR VIOLATIONS OF ITS RULES OF CONDUCT. MR. GUNN FAILED TO FILE A RESPONSE TO THE COMPLAINT AND WAS THEREFORE DEEMED TO BE IN DEFAULT BY THE CFP BOARD. THE CFP BOARD ULTIMATELY ISSUED A PERMANENT BAR IN RESPONSE TO THE FOLLOWING DISCIPLINARY ACTION, AND MR. GUNN'S SUBSEQUENT FAILURE TO COOPERATE WITH THE CFP BOARD'S INVESTIGATION: DECEMBER 13, 2013: THE SECURITIES AND EXCHANGE COMMISSION FILED A CIVIL LAWSUIT INJUNCTION ON DECEMBER 12, 2013, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO AGAINST A COLORADO RESIDENT, HIS COMPANY, AND OTHERS WHO CARRIED OUT A PRIME BANK FRAUD THAT RAISED MORE THAN $31 MILLION FROM 2010 THROUGH 2012. THE SEC'S COMPLIANT ALLEGED THAT MARSHALL D. GUNN, AND THE OTHER INDIVIDUAL AND ENTITY DEFENDANTS CLAIMED TO HAVE ACCESS TO SPECIAL PROGRAMS THAT WOULD PROVIDE ANNUAL RETURNS OF MORE THAN 250 PERCENT BY OBTAINING LOANS AGAINST A FINANCIAL INSTRUMENT KNOWN AS A COLLATERALIZED MORTGAGE OBLIGATION, OR CMO, AND THEN INVESTING THE LOAN PROCEEDS IN A PURPORTED CMO TRADING PROGRAM. THE COMPLAINT ALLEGED THAT THE INDIVIDUALS AND ENTITIES NEVER OBTAINED THE LOANS AGAINST CMOS OR PLACED INVESTOR FUNDS IN A CMO TRADING PROGRAM, BUT INSTEAD MISAPPROPRIATED INVESTOR FUNDS FOR THEIR OWN USE. THE COMPLAINT ALSO ALLEGED THAT SEVERAL OF THE DEFENDANTS AIDED AND ABETTED THE FRAUD BY SELLING CMOS HELD FOR THE BENEFIT OF INVESTORS AND FUNNELING THOSE PROCEEDS BACK TO THE COLORADO RESIDENT. THE SEC'S COMPLAINT ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE ANTI-FRAUD PROVISIONS OF THE SECURITIES LAWS IN SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER; AND THAT OTHER DEFENDANTS ALSO AIDED AND ABETTED THESE VIOLATIONS. THE COMPLAINT ALSO ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE SECURITY REGISTRATION PROVISIONS OF THE SECURITIES LAWS IN SECTION 5(A) AND (C) OF THE SECURITIES ACT. ALSO, THE COMPLAINT ALLEGES THAT GUNN, AND OTHER DEFENDANTS VIOLATED SECTION 15(A) OF THE EXCHANGE ACT BY ACTING AS UNREGISTERED BROKER-DEALERS. Status: Final Sanction Detail: MARSHALL D. GUNN, JR. WAS ISSED AN ADMINISTRATIVE ORDER OF PERMANENT BAR ON OCTOBER 1, 2021. MR. GUNN IS PERMANENTLY BARRED FROM HOLDING OR OBTAINING THE CFP BOARD CERTIFICATION OR USING THE CFP OR CERTIFIED FINANCIAL PLANNER MARKS. Summary: MARSHALL D. GUNN, JR. WAS ISSED AN ADMINISTRATIVE ORDER OF PERMANENT BAR ON OCTOBER 1, 2021. MR. GUNN IS PERMANENTLY BARRED FROM HOLDING OR OBTAINING THE CFP BOARD CERTIFICATION OR USING THE CFP OR CERTIFIED FINANCIAL PLANNER MARKS.

Allegations: AT A MEETING OF THE HEARING PANEL OF THE JOINT TRIAL BOARD OF THE AICPA THE PANEL FOUND MR. GUNN GUILTY OF VIOLATING THE GENERAL STANDARDS OF RULE .01A. PROFESSIONAL COMPETENCE (2.300.001); GENERAL STANDARDS FULE .01B. DUE PROFESSIONAL CARE (2.300.001); AND ACT DISCREDIBLE RULE (2.400.001) OF THE AICPA CODE OF PROFESSIONAL CONDUCT. THIS WAS IN CONNECTION WITH THE FOLLOWING DISCIPLINARY EVENT: DECEMBER 13, 2013: THE SECURITIES AND EXCHANGE COMMISSION FILED A CIVIL LAWSUIT INJUNCTION ON DECEMBER 12, 2013, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO AGAINST A COLORADO RESIDENT, HIS COMPANY, AND OTHERS WHO CARRIED OUT A PRIME BANK FRAUD THAT RAISED MORE THAN $31 MILLION FROM 2010 THROUGH 2012. THE SEC'S COMPLIANT ALLEGED THAT MARSHALL D. GUNN, AND THE OTHER INDIVIDUAL AND ENTITY DEFENDANTS CLAIMED TO HAVE ACCESS TO SPECIAL PROGRAMS THAT WOULD PROVIDE ANNUAL RETURNS OF MORE THAN 250 PERCENT BY OBTAINING LOANS AGAINST A FINANCIAL INSTRUMENT KNOWN AS A COLLATERALIZED MORTGAGE OBLIGATION, OR CMO, AND THEN INVESTING THE LOAN PROCEEDS IN A PURPORTED CMO TRADING PROGRAM. THE COMPLAINT ALLEGED THAT THE INDIVIDUALS AND ENTITIES NEVER OBTAINED THE LOANS AGAINST CMOS OR PLACED INVESTOR FUNDS IN A CMO TRADING PROGRAM, BUT INSTEAD MISAPPROPRIATED INVESTOR FUNDS FOR THEIR OWN USE. THE COMPLAINT ALSO ALLEGED THAT SEVERAL OF THE DEFENDANTS AIDED AND ABETTED THE FRAUD BY SELLING CMOS HELD FOR THE BENEFIT OF INVESTORS AND FUNNELING THOSE PROCEEDS BACK TO THE COLORADO RESIDENT. THE SEC'S COMPLAINT ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE ANTI-FRAUD PROVISIONS OF THE SECURITIES LAWS IN SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER; AND THAT OTHER DEFENDANTS ALSO AIDED AND ABETTED THESE VIOLATIONS. THE COMPLAINT ALSO ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE SECURITY REGISTRATION PROVISIONS OF THE SECURITIES LAWS IN SECTION 5(A) AND (C) OF THE SECURITIES ACT. ALSO, THE COMPLAINT ALLEGES THAT GUNN, AND OTHER DEFENDANTS VIOLATED SECTION 15(A) OF THE EXCHANGE ACT BY ACTING AS UNREGISTERED BROKER-DEALERS. Status: Final Sanction Detail: THE HEARING PANEL VOTED TO TO EXPEL MR. GUNN FROM MEMBERSHIP IN THE AICPA. MR. GUNN WAS GIVEN THE OPTION TO REQUEST A REVIEW OF THE HEARING PANEL'S DECISION BY DECEMBER 16, 2023. SINCE MR. GUNN DID NOT REQUEST SUCH A REVIEW, THE IS NO OTHER PROVISION IN THE RULES FOR REQUESTING A REVIEW AND THE FINDING IS FINAL AS OF THAT DATE. Summary: THE HEARING PANEL VOTED TO TO EXPEL MR. GUNN FROM MEMBERSHIP IN THE AICPA. MR. GUNN WAS GIVEN THE OPTION TO REQUEST A REVIEW OF THE HEARING PANEL'S DECISION BY DECEMBER 16, 2023. SINCE MR. GUNN DID NOT REQUEST SUCH A REVIEW, THE IS NO OTHER PROVISION IN THE RULES FOR REQUESTING A REVIEW AND THE FINDING IS FINAL AS OF THAT DATE.

Allegations: DECEMBER 13, 2013: THE SECURITIES AND EXCHANGE COMMISSION FILED A CIVIL LAWSUIT INJUNCTION ON DECEMBER 12, 2013, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO AGAINST A COLORADO RESIDENT, HIS COMPANY, AND OTHERS WHO CARRIED OUT A PRIME BANK FRAUD THAT RAISED MORE THAN $31 MILLION FROM 2010 THROUGH 2012. THE SEC'S COMPLIANT ALLEGED THAT MARSHALL D. GUNN, AND THE OTHER INDIVIDUAL AND ENTITY DEFENDANTS CLAIMED TO HAVE ACCESS TO SPECIAL PROGRAMS THAT WOULD PROVIDE ANNUAL RETURNS OF MORE THAN 250 PERCENT BY OBTAINING LOANS AGAINST A FINANCIAL INSTRUMENT KNOWN AS A COLLATERALIZED MORTGAGE OBLIGATION, OR CMO, AND THEN INVESTING THE LOAN PROCEEDS IN A PURPORTED CMO TRADING PROGRAM. THE COMPLAINT ALLEGED THAT THE INDIVIDUALS AND ENTITIES NEVER OBTAINED THE LOANS AGAINST CMOS OR PLACED INVESTOR FUNDS IN A CMO TRADING PROGRAM, BUT INSTEAD MISAPPROPRIATED INVESTOR FUNDS FOR THEIR OWN USE. THE COMPLAINT ALSO ALLEGED THAT SEVERAL OF THE DEFENDANTS AIDED AND ABETTED THE FRAUD BY SELLING CMOS HELD FOR THE BENEFIT OF INVESTORS AND FUNNELING THOSE PROCEEDS BACK TO THE COLORADO RESIDENT. THE SEC'S COMPLAINT ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE ANTI-FRAUD PROVISIONS OF THE SECURITIES LAWS IN SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER; AND THAT OTHER DEFENDANTS ALSO AIDED AND ABETTED THESE VIOLATIONS. THE COMPLAINT ALSO ALLEGED THAT GUNN, AND OTHER DEFENDANTS VIOLATED THE SECURITY REGISTRATION PROVISIONS OF THE SECURITIES LAWS IN SECTION 5(A) AND (C) OF THE SECURITIES ACT. ALSO, THE COMPLAINT ALLEGES THAT GUNN, AND OTHER DEFENDANTS VIOLATED SECTION 15(A) OF THE EXCHANGE ACT BY ACTING AS UNREGISTERED BROKER-DEALERS. Status: Final Sanction Detail: GUNN CONSENTED TO ENTRY OF A FINAL JUDGMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, AND AGREED TO BE PERMANENTLY ENJOINED FROM FUTURE VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER AND THE SECURITIES REGISTRATION PROVISIONS OF SECTIONS 5(A) AND (C) OF THE SECURITIES ACT AND THE BROKER-DEALER REGISTRATION PROVISION OF SECTION 15(A) OF THE EXCHANGE ACT. Summary: GUNN CONSENTED TO ENTRY OF A FINAL JUDGMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF THE COMPLAINT, AND AGREED TO BE PERMANENTLY ENJOINED FROM FUTURE VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER AND THE SECURITIES REGISTRATION PROVISIONS OF SECTIONS 5(A) AND (C) OF THE SECURITIES ACT AND THE BROKER-DEALER REGISTRATION PROVISION OF SECTION 15(A) OF THE EXCHANGE ACT. GUNN AGREED TO PAY DISGORGEMENT OF $197,500, PREJUDGMENT INTEREST OF $33,754 AND A CIVIL PENALTY OF $50,000.