In the Matter of George J. Kolar
Securities and Exchange Commission
Initial Decision Rel. No. 152, Administrative Proceeding File No. 3-9570 (1999)
- Written by Sharon Feldman, JD
Facts
George Kolar (defendant) was the Detroit- metropolitan-area manager for broker-dealer Dean Witter Reynolds, Inc. (DW). All Detroit-area branch managers reported to Kolar. Kolar visited the Troy branch every six to eight weeks, spoke to brokers, reviewed ledgers, and had frequent telephone conversations with branch manager Raymond Basile. Kolar had input in hiring, disciplinary, and firing decisions relating to Troy-branch employees. Dean Turner was a registered representative in the Troy office. When Turner was hired, he told Basile he invested in Lease Equities Fund, Inc. (LEF) promissory notes. Turner was told not to sell the notes to DW customers. Turner, who was not registered as a broker, sold the unregistered notes to DW clients. A CIGNA Financial Advisors, Inc., representative advised Kolar that Turner was selling away from DW, LEF had cash-flow problems, and Turner was likely controlling payments to investors. Kolar and Basile met with Turner, who claimed he was just an investor and supplied tax returns showing only investment income. Kolar, Basile, and DW’s Midwest regional director jointly decided not to proceed further. LEF failed to meet its payment obligations and was liquidated. The Securities and Exchange Commission (SEC) (plaintiff) instituted proceedings, alleging that Kolar’s supervision of Turner was deficient.
Rule of Law
Issue
Holding and Reasoning (Kelly, J.)
What to do next…
Here's why 811,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
