July 7, 2006                                                         Contact:Lucas Hamilton

AUDITOR MORRISON TAKES LEGAL ACTION AGAINST SECURITIES SALESPERSON


      Morrison shuts down alleged illegal activity; denies securities application of Bozeman stockbroker
      
      Montana State Auditor John Morrison has issued a Cease and Desist Order, a Notice of Proposed Disciplinary Action and an Order denying an application for registration as a securities salesperson against Russell Millard Squire, III, of Bozeman. These documents allege Squire committed violations of the Montana Securities Act in Squire’s handling of accounts belonging to an 85 year old Montanan and a Montana couple who are both disabled.
      "We won’t tolerate unscrupulous securities salespersons in Montana," Morrison said. "Betraying the trust of a client is unacceptable. I will do all that I can to halt these investment abuses especially when the most vulnerable members of our society are victimized."
      In both situations the Securities Department alleges Squire mishandled accounts that were designated to create income for the account owners. The 85 year old alleged victim needed to generate income to pay living expenses, including a high-end insurance premium. In the case of the disabled couple, they needed their investment account to earn income because they could not earn it through work. They have two minor children they support with this investment income. Squire conducted trading in the accounts that was inappropriate for the alleged victims’ financial needs, and engaged in a pattern of trading that was excessive in nature. The Securities Department also alleges Squire violated the law by guaranteeing his trading strategies and by trading for the sole purpose of generating commissions.
      In August of 2005 Squire’s insurance producer license lapsed when he failed to comply with license renewal requirements.
      Since many important cases have begun with anonymous tips from the public, Morrison encourages Montana residents who are concerned about a questionable investment offering or salesperson to contact the Montana State Auditor’s Office at 1-800-332-6148.