UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7626 / January 11, 1999
INVESTMENT COMPANY ACT OF 1940
Release No. 23639 / January 11, 1999
INVESTMENT ADVISERS ACT OF 1940
Release No. 1783 / January 11, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9805
:
ORDER INSTITUTING PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST
PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND
CEASE-AND-DESIST ORDERS
In the Matter of :
:
JOHN E. BACKLUND, JOHN :
H. HANKINS, HOWARD :
L. PETERSON, AND :
JOHN G.GUFFEY, :
:
Respondents. :
:
I.
The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest that:
A. public administrative proceedings pursuant to Section 9(b) of
the Investment Company Act of 1940, as amended ("Investment
Company Act") and Section 203(f) of the Investment Advisers Act
of 1940, as amended ("Advisers Act"), and public cease-and-desist
proceedings pursuant to Section 8A of the Securities Act of 1933,
as amended ("Securities Act") and Section 9(f) of the Investment
Company Act, be instituted against John E. Backlund ("Backlund");
and
B. public administrative proceedings pursuant to Section 9(b) of
the Investment Company Act, and public cease-and-desist
proceedings pursuant to Section 8A of the Securities Act and
Section 9(f) of the Investment Company Act, be instituted against
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT COMPANY ACT OF 1940
ORDER INSTITUTING PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS,
The Securities and Exchange Commission deems it appropriate and in the public interest that:
In anticipation of the institution of these proceedings, Backlund, Hankins, Peterson, and
Respondents, each of whom admits the Commission’s jurisdiction over him and over the subject
Community Bankers Mutual Fund, Inc.,
Money Market Fund.
investment adviser since 1988, is owned by about 70 bank
CAM made the day-to-day investment decisions
when a sub-adviser, Prospect Hill Advisers, Inc. ("Prospect
CAM marketed Fund shares,
called structured notes, for the Fund’s portfolio.
Fair Value Shadow Pricing Adopted
shadow pricing resulted in a claimed $1.00 NAV per share.
By the Community Bankers board meeting conducted June 17,
Misleading Prospectus and SAI
by selling or redeeming Fund shares at a net asset
material facts, or omitted to state therein facts necessary
Respondents Backlund, Hankins, Peterson, and Guffey cease and desist from committing or
Respondent Backlund shall, within ten days of the entry of this Order, pay a civil money
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