[Federal Register Volume 68, Number 119 (Friday, June 20, 2003)]
[Notices]
[Pages 37034-37035]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 03-15709]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and
Exchange Commission will hold the following meetings during the week of
June 23, 2003:
A closed meeting will be held on Tuesday, June 24, 2003, at 2 p.m., and
an open meeting will be held on Wednesday, June 25, 2003, at 10 a.m. in
Room 1C30, the William O. Douglas Room.
Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the closed meeting.
Certain staff members who have an interest in the matters may also be
present.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(5), (7), (9)(B) and (10) and 17 CFR 200.402(a)(5),
(7), (9)(ii) and (10), permit consideration of the scheduled matters at
the closed meeting.
The subject matter of the closed meeting scheduled for Tuesday,
June 24, 2003, will be:
Institution and settlement of administrative proceedings of an
enforcement nature;
Institution and settlement of injunctive actions;
Formal orders of investigation; and
Opinions.
The subject matter of the open meeting scheduled for Wednesday,
June 25, 2003, will be:
1. The Commission will hear oral argument on an appeal by Terence
Michael Coxon, Alan Michael Sergy, and World Money Managers (``WMM''),
a registered investment adviser, from the decision of an administrative
law judge. Coxon is a general partner of WMM, and Sergy was formerly a
paid consultant to WMM.
The law judge found that:
a. Respondents willfully violated section 17(a) of the Securities
Act of 1933, section 10(b) of the Securities Exchange Act of 1934, and
Exchange Act rule 10b-5;
b. Coxon and Sergy willfully violated section 34(b) of the
Investment Company Act;
c. WMM willfully violated section 206(2) of the Investment Advisers
Act of 1940 and that Coxon and Sergy willfully aided, abetted, and were
causes of that violation; and
d. Respondents willfully aided and abetted and were causes of
violations by the Permanent Portfolio Family of Funds, Inc. of
Investment Company Act of 1940 sections 17(d), 12(b), 13(a)(3), and
10(b), and IC Act rules 17d-1 and 12b-1.
The law judge suspended WMM as an investment adviser for three
months and assessed a $100,000 civil money penalty; suspended Coxon and
Sergy from association with an investment adviser or investment company
for three months and assessed each of them a $20,000 civil money
penalty; ordered respondents to cease and desist; and assessed
$1,608,018 in disgorgement, plus prejudgment interest.
Among the issues likely to be argued are:
a. Whether respondents committed, aided and abetted, or were causes
of the alleged violations; and
b. If so, whether sanctions should be imposed in the public
interest.
2. The Commission will hear oral argument on appeals by Fundamental
Portfolio Advisers, Inc. (``FPA''), Lance M. Brofman, and Fundamental
Service Corporation (``FSC''), from the decision of an administrative
law judge. FPA, a registered investment adviser, was the investment
adviser to The Fundamental U.S. Government Strategic Income Fund (``the
Fund''). Brofman was formerly the chief portfolio manager for the Fund.
FSC, a registered broker-dealer affiliated with FPA, distributed shares
of the Fund.
The law judge found that FPA violated section 17(a) of the
Securities Act of 1933, section 10(b) of the Securities Exchange Act of
1934 and Exchange Act rule 10b-5 thereunder. The law judge also found
that FPA violated section 34(b) of the Investment Company Act of 1940,
and sections 206(1) and (2) of the Investment Advisers Act of 1940.
Additionally, the law judge found that Brofman ``aided and abetted and
caused'' FPA's violations. Finally, the law judge found that FSC
violated section 17(a) of the Securities Act, section 10(b) of the
Exchange Act and rules 10b-3, and 10b-
[[Page 37035]]
5 thereunder, and section 15(c)(1) of the Exchange Act and rule 15c1-2
thereunder.
The law judge revoked FPA's investment adviser registration and
ordered that FPA pay a civil monetary penalty of $500,000; revoked
FSC's broker-dealer registration and ordered that FSC pay a civil
monetary penalty of $500,000; and barred Brofman from association with
any broker, dealer, investment adviser, or investment company and
ordered him to pay a civil monetary penalty of $250,000. The law judge
also ordered that Respondents cease and desist from committing or
causing any violation or future violation of the provisions they were
found to have violated.
Among the issues likely to be argued are:
a. Whether FPA made material misrepresentations and omissions in
connection with the offer and sale of Fund shares;
b. Whether FPA failed to disclose to the Fund's Board of Directors
its soft dollar arrangements;
c. Whether Brofman aided and abetted and was a cause of FPA's
violations; and
d. Whether FSC disseminated materially misleading materials in
connection with the sale of Fund shares.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items. For further information and to
ascertain what, if any, matters have been added, deleted, or postponed,
please contact: the Office of the Secretary at (202) 942-7070.
Dated: June 17, 2003.
Jonathan G. Katz,
Secretary.
[FR Doc. 03-15709 Filed 6-17-03; 4:52 pm]
BILLING CODE 8010-01-P