-------------------- BEGINNING OF PAGE #1 -------------------
U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14765 / December 22, 1995
SECURITIES AND EXCHANGE COMMISSION V. JAMES A. PEARCE
Civil Action No. CV 95-6533 RJK (C.D. Cal.)
The Securities and Exchange Commission ("Commission")
announced on December 11, 1995, that a Judgment of Permanent
Injunction and Other Relief was obtained against James A. Pearce
("Pearce"). A civil Complaint was filed by the Commission
against Pearce on September 5, 1995 in the Central District of
California alleging that Defendant Pearce participated in a
fraudulent scheme with Steven D. Wymer ("Wymer") and the
investment advisers controlled by Wymer, Denman & Co and
Institutional Treasury Management, Inc. (collectively "ITM").
From 1987 through December, 1991, Wymer, through ITM,
conducted a massive fraudulent scheme against his advisory
clients, principally small cities and towns, local government
agencies and financial institutions. Wymer misappropriated and
diverted his advisory clients' funds, commingling and using the
funds to pay purported profits on non-existent securities
transactions made on behalf of his clients, to cover client and
personal trading losses, to fund ITM's operations and to pay for
Wymer's lavish personal living expenses. In prior actions, Wymer
was enjoined from future securities law violations, pleaded
guilty to nine felony counts of racketeering, securities fraud,
mail fraud, bank fraud, obstruction of justice and was ordered to
pay $209 million in restitution to his former clients. Wymer is
currently serving a prison sentence of 14 years and 7 months.
The Commission's Complaint made the following allegations
against Pearce. As ITM's marketing director and salesman, Pearce
prepared and distributed false and misleading marketing
materials. Pearce assured an ITM client that the fraudulent
trades it questioned were legitimate and agreed to assist Wymer
in the concealment of excessive trading mark-ups in exchange for
a portion of the mark-ups. Pearce acted as a registered
representative without informing clients of the investment
advisers and signed and filed with the Commission a materially
false Form ADV and Form ADV-Amendment for ITM. For this conduct,
Wymer paid Pearce $338,000 (above Pearce's normal salary).
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION V. JAMES A. PEARCE
Civil Action No. CV 95-6533 RJK (C.D.
The Securities and Exchange Commission announced on December 11, 1995, that a Judgment of
A civil Complaint was filed by the Commission against Pearce on September 5, 1995 in the
From 1987 through December, 1991, Wymer, through ITM, conducted a massive fraudulent scheme
Wymer misappropriated and diverted his advisory clients' funds, commingling and using the
In prior actions, Wymer was enjoined from future securities law violations, pleaded guilty to
The Commission's Complaint made the following allegations against Pearce.
As ITM's marketing director and salesman, Pearce prepared and distributed false and
Pearce assured an ITM client that the fraudulent trades it questioned were legitimate and
Pearce acted as a registered representative without informing clients of the investment
Pearce also received $266,096 in undisclosed commissions from broker-dealers on ITM clients'
Without admitting or denying the allegations contained in the Complaint, Pearce consented to
|
