CONCURRING STATEMENT OF COMMISSIONERS ORSON SWINDLE AND THOMAS B. LEARY in Wade Cook Financial Corporation, et al.,
File No. 992-3104
The Commission has filed a settlement agreement to resolve complaint allegations that
Wade Cook Financial Corporation and Wade Cook Seminars, Inc. (collectively
"WCFC") made deceptive claims about how much consumers could earn using stock
trading techniques taught at WCFC's seminars. The consent order imposes restrictions on
WCFC's future conduct and mandates a redress program for tens of thousands of consumers
who together paid millions of dollars to attend WCFC's seminars. This tough relief against
WCFC is warranted based on the allegations of deception in the complaint and the magnitude
of the likely injury from the alleged deception.
Mr. Cook should have been named in the complaint; he is WCFC. Mr. Cook and his personal reputation are at the core of the deception pleaded here. If the Commission had named Mr. Cook, he could not disclaim responsibility for conduct that likely caused millions of dollars in injury to consumers -- an important sanction because his reputation is likely to be pivotal in his future book sales and other business ventures. As it is, however, he can in the future truthfully represent that the Commission never alleged that he did anything illegal in connection with WCFC.
Although Mr. Cook is not named, the consent order does impose some restrictions on him, including a requirement that he guarantee WCFC's redress payments. These requirements may limit Mr. Cook's ability to entirely distance himself from WCFC's alleged illegal conduct. Nevertheless, potential consumers of Mr. Cook's products and services would be better served if they had more information about his role in the deceptive conduct pleaded here.