UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT of 1940
Release No. 1889 / August 3, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10261
In the Matter of
DAWSON-SAMBERG
CAPITAL MANAGEMENT, INC.
Now Known As
DAWSON-GIAMMALVA
CAPITAL MANAGEMENT, INC.
and JUDITH A. MACK,
Respondent.
ORDER INSTITUTING PUBLIC
PROCEEDINGS PURSUANT
TO SECTIONS 203(e), 203(f)
AND 203(k) OF THE
INVESTMENT ADVISERS ACT
OF 1940, MAKING FINDINGS,
IMPOSING REMEDIAL
SANCTIONS AND ISSUING
CEASE-AND-DESIST ORDER
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that public cease and desist
and administrative proceedings be instituted pursuant to Sections
203(e) and 203(k) of the Investment Advisers Act of 1940 ("Advisers
Act") against Dawson-Samberg Capital Management, Inc.
("Dawson-Samberg"), now known as Dawson-Giammalva Capital Management,
Inc. ("Dawson-Giammalva"or "Registrant")(File No. 801-15852), a
registered investment adviser, and Sections 203(f) and 203(k) of the
Advisers Act against Judith A. Mack ("Mack").
II.
In anticipation of the institution of these proceedings,
Dawson-Giammalva and Mack have submitted Offers of Settlement
("Offers") that the Commission has determined to accept. Solely for
the purpose of these proceedings and any other proceedings brought by
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
DAWSON-SAMBERG CAPITAL MANAGEMENT, INC.
DAWSON-GIAMMALVA CAPITAL MANAGEMENT, INC. and JUDITH A. MACK, Respondent.
INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, IMPOSING REMEDIAL SANCTIONS AND ISSUING
Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
t Advisers Act of 1940, Making Findings, Imposing Remedial Sanctions and Issuing Cease-and-Desist
Dawson-Samberg, now known as Dawson-Giammalva, of Southport, Connecticut, a registered
On January 3, 2000, Dawson-Samberg effected a name change to Dawson-Giammalva Capital
Between at least 1994 and November 1996, Dawson-Samberg used soft dollar credits improperly
the firm's efforts to ensure proper disclosure of its use of soft dollars did not keep pace
Abetted Violations of Section 206of the Advisers Act
The Forms ADV and client agreements, however, did not disclose Dawson-Samberg's use of soft
Problems with travel began in August 1994, when Dawson-Samberg obtained a corporate American
Dawson-Samberg arranged for a broker-dealer to pay research-related travel expenses charged
Dawson-Samberg then began to forward AMEX Card bills to soft dollar brokers for payment,
These improper charges occurred because the travel agent utilized by Dawson-Samberg, after
It was Mack's responsibility to ensure that only travel for research purposes was charged on
No. 1447, 57 SEC Docket 2489, 2500.
IT IS FURTHER ORDERED that, within ten days of the issuance of this Order, pursuant to
Dawson-Giammalva shall retain, within 30 days of the date of this Order, at its expense, an
IT IS FURTHER ORDERED that Dawson-Giammalva shall, within nine months from the issuance of
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