UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 73322 / October 8, 2014

ADMINISTRATIVE PROCEEDING

File No. 3-15014

In the Matter of

JP TURNER & COMPANY,

LLC, and WILLIAM L. MELLO

Respondents. 

NOTICE OF PROPOSED 

PLAN OF DISTRIBUTION 

AND OPPORTUNITY 

FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the Rules on Fair Fund and Disgorgement 

Plans, 17 C.F.R. § 201.1103, of the United States Securities and Exchange Commission 

(“Commission”), that the Division of Enforcement has submitted to the Commission a proposed 

plan (“Plan”) for the distribution of monies collected by the Commission in the above-captioned 

matter.

On September 10, 2012, the Commission entered an Order Instituting Administrative 

Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) 

of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions 

(“Order”) against JP Turner & Company, LLC (“JP Turner”) and its former president, William 

L. Mello (collectively, “Respondents”), for Respondents’ failures reasonably to supervise three 

registered representatives who churned customer accounts for the purpose of generating 

commission business by engaging in excessive trading in disregard of customers’ investment 

objectives and financial needs.1 Pursuant to the Order, JP Turner paid disgorgement of 

$200,000, prejudgment interest of $16,051, and a civil money penalty in the amount of $200,000, 

and William L. Mello paid a civil money penalty in the amount of $45,000 for a combined 

payment of $461,051. 

 

OPPORTUNITY FOR COMMENT

Pursuant to this Notice of Proposed Plan of Distribution and Opportunity for Comment

(“Notice”), interested parties are advised that they may print a copy of the Plan from the 

Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm. Interested parties 

 

1 Exchange Act Rel. No. 67808 (Sept. 10, 2012). 
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also may obtain a written copy of the Plan by submitting a written request to Nichola L. 

Timmons, United States Securities and Exchange Commission, 100 F Street, NE, Washington, 

DC 20549-5631. All persons who desire to comment on the Plan must submit their comments, 

in writing, no later than thirty (30) days from the publication date of this Notice:

1. To the Office of the Secretary, United States Securities and Exchange 

Commission, 100 F Street, NE, Washington, DC 20549-1090;

2. By using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. By sending an email to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include 

“Administrative Proceeding File No. 3-15014” in the subject line. Comments received will be 

publicly available. Thus, persons should only submit information that they wish to make 

publicly available.

THE DISTRIBUTION PLAN

The Distribution Fund is comprised of the $216,051 in disgorgement and prejudgment 

interest paid by Respondents, less any federal, state, or local taxes and fees and expenses of 

administering the distribution. The Plan proposes to distribute the Distribution Fund to affected 

customers of JP Turner who suffered a net harm by virtue of the conduct described in the Order 

and as calculated per the methodology set forth in the Plan (collectively, “Eligible Customers”).

The Plan provides for Eligible Customers to receive monies from the Distribution Fund 

that represents the affected customer’s Net Harm Amount, plus the time value of money, as 

calculated pursuant to the Plan. Eligible Customers will not need to go through a claims process; 

rather, they will be determined from available records. The Eligible Customers will not be 

required to make claims or submit documentation to establish their eligibility. The Plan provides 

that on the basis of information obtained by the Commission staff through review and analysis of 

applicable records, the Fund Administrator will identify the Eligible Customers. Within sixty

(60) days of the Commission’s approval of the Plan, the Fund Administrator will send each 

Eligible Customer a notice by United States Postal Service regarding the Commission’s approval 

of the Plan, a distribution check, and, as appropriate, a statement characterizing the distribution, 

a link to the Plan on the Commission’s website and instructions for requesting a copy of the 

Plan, a net harm amount calculation, a present value net harm amount calculation, and a 

preliminary gross distribution amount, a description of the tax information reporting and other 

related tax matters, the procedure for the distribution as set forth in the Plan, and the name of the 

Fund Administrator to contact with questions regarding the distribution. The Fund 

Administrator will coordinate with the appointed Tax Administrator to request information from 

each Eligible Customer that is needed to accomplish the distribution in accordance with 

applicable tax requirements relating to the Distribution Fund.

The Plan also provides procedures for Eligible Customers to dispute the amounts received. 

Disputes will be limited to calculations of disbursement amounts to Eligible Customers. Should an 
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Eligible Customer wish to dispute the amount received, an Eligible Customer must submit a written 

communication to the Fund Administrator. The Fund Administrator must receive the written 

communication detailing the dispute along with any supporting documentation within thirty (30) 

days of the date that an Eligible Customer’s disbursement is made. The Fund Administrator will 

investigate the dispute, and such investigation will include a review of the written dispute as well as 

any supporting documentation. Within thirty (30) days of receipt of the written dispute, the Fund 

Administrator will notify the Eligible Customer of her resolution of the dispute, which shall be final.

For the Commission, by its Secretary, pursuant to delegated authority. 

Brent J. Fields

Secretary