SEC v. Herbert Steven Fouke (2014)

Judgment entered

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In August 2014 an SEC administrative law judge entered a default decision permanently barring former Brookstone Securities representative Herbert Steven Fouke from the securities industry and from penny stock offerings, based on his September 2013 guilty plea to one count of conspiracy. No monetary relief is recorded.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

An SEC administrative law judge issued an initial decision of default on August 29, 2014 in administrative proceeding 3-15830, after Fouke failed to answer the order instituting proceedings or appear at the prehearing conference. The respondent is Herbert Steven Fouke (1 individual, 0 entities).

The proceeding is a follow-on action resting on a criminal conviction, not a trial of trading conduct. Fouke, a registered representative at Brookstone Securities in Florida, pleaded guilty in the Western District of Louisiana on September 6, 2013 to conspiracy with co-defendant Richard Buswell. His plea admitted that he knew Buswell had misstated credentials, commissions and promised returns to clients, had not explained the risks of direct private placements or margin, and had falsified clients' net worth to make them look like accredited investors. The word churning appears only where the decision recites the indictment's description of Buswell's own conduct; the order instituting proceedings does not mention it, and Fouke's plea is not recorded as admitting it. This library therefore does not tag the matter as churning, and no other technique fits.

The sanction is a permanent collateral bar from associating with a broker, dealer or adviser and from participating in a penny stock offering. No penalty or disgorgement is ordered.

For the regulator's own account of the facts, read the primary documents linked above.

Timeline

1. 2014-08-29 Initial decision

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• Initial decision (ID-660)
• Order instituting proceedings
• Finality order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.