The Arizona Corporation Commission has revoked the registrations of two securities salesmen and suspended a third for 60 days.

The revocations affected Philip William Merrill, who was a securities salesman at a Sun City branch of Morgan Stanley Dean Witter between 1997 and 2001, and Robert J. Brannon, who sold at least 45 viatical contracts issued through a Florida-based company, Mutual Benefits Corp. from 1998 through 2001.

The Commission suspended James T.M. Verbic for his activities while he was a financial consultant at Merrill Lynch, Pierce, Fenner & Smith, Inc., in Scottsdale between 1991 and 2000.

Mr. Merrill was ordered to pay $5,000 in penalties for making unauthorized transactions in the security accounts of five investors. The Commission also ordered Mr. Merrill to pay restitution of $41,667.

Morgan Stanley Dean Witter terminated Mr. Merrill in April 2001.

The Commission entered into a consent order with Mr. Brannon, who agreed to pay $5,000 in penalties and return over $70,000 of commissions earned from selling unregistered viatical contracts to at least 15 investors.

The principal amount of the viatical investments sold by Mr. Brannon totaled approximately $850,000. Viatical contracts involve the purchase of future death benefits from insured individuals, at a marked discount, for subsequent resale to investors.

Mr. Verbic was ordered him to pay a $2,000 penalty. The Commission found that Mr. Verbic borrowed or attempted to borrow money from two of his securities customers, which is a violation of Arizona’s securities laws.

The Commission did not seek restitution in this case as Mr. Verbic returned all the principal and interest to his customer. After his two-month suspension and payment of penalties is complete, Mr. Verbic may reapply for a securities license. —