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Bon mots

"You can observe a lot just by watching." Yogi Berra

"We do not distain to borrow wit or wisdom from any man who is capable of lending us either." Henry Fielding, Tom Jones

"In our complex society the accountant's certificate and the lawyer's opinion can be instruments for inflicting pecuniary loss more potent than the chisel or the crowbar." United States v. Benjamin, 328 F.2d 854, 862 (2d Cir. 1964)

Bar Based on Injunction and Criminal Conviction Entered

Don Warner Reinhard, Exchange Act Rel. 63720, January 14, 2011

Reinhard was formerly a registered investment advisor and associated person of a registered broker-dealer. In 2008 he was enjoined by default for various violations of the Advisers Act, including fraud. In 2009 he pleaded guilty in a federal criminal case based on making a false loan application and bankruptcy fraud.

The ALJ barred Reinhard and in February 2010 the Commission remanded the matter after Reinhard appealed that decision. In that order the Commission directed that additional evidence be introduced of Reinhard's conduct due to its reluctance to enter sanctions based on a default judgment.

This time the Commission upheld the bar finding it "amply warranted." That decision was in large part based on Reinhard's criminal conviction. The Commission noted that he was estopped from challenging the factual basis for his criminal plea agreement. It also applied the "grandmother test" (would you want this man handling your grandmother's money?), noting that in the securities industry "honesty and rectitude concerning financial matters is critical."