UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release No. 1881 / June 20, 2000
SECURITIES EXCHANGE ACT OF 1934
Release No. 42963 / June 20, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10236
In the Matter of
JAMES L. FOSTER, LAURIE F. FOSTER,
STEVEN M. BOLLA, AND WILLIAM E.
BUSACKER, JR.,
Respondents.
ORDER INSTITUTING PROCEEDINGS,
MAKING FINDINGS AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that proceedings be, and hereby
are, instituted pursuant to Section 203(f) of the Investment Advisers
Act of 1940 ("Advisers Act") against James L. Foster ("James Foster")
and Steven M. Bolla ("Bolla"), and pursuant to Section 203(f) of the
Advisers Act and Section 15(b)(6) of the Securities Exchange Act of
1934 ("Exchange Act") against Laurie F. Foster ("Laurie Foster"), and
William E. Busacker, Jr. ("Busacker") (collectively, the
"Respondents").
II.
In anticipation of these proceedings, the Respondents have submitted
Offers of Settlement ("Offers") which the Commission has determined to
accept. Solely for the purpose of this proceeding, and any other
proceeding brought by or on behalf of the Commission, or in which the
Commission is a party, without admitting or denying the findings
contained herein, except the Commission's findings set forth in
Paragraphs III. A. through III. E., which are admitted, the
Respondents have consented to the issuance of this Order Instituting
Public Proceedings, Making Findings and Imposing Remedial Sanctions
("Order"), and to the entry of the findings and the imposition of the
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
SECURITIES EXCHANGE ACT OF 1934
ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS
the Respondents have submitted Offers of Settlement which the Commission has determined to
Solely for the purpose of this proceeding, and any other proceeding brought by or on behalf
At all relevant times, he was portfolio manager, president, CEO, and one of two principal
James Foster also served as vice president of Security Financial, Inc. and of Matrix
Laurie F. Foster, age 43, is James Foster's wife and also resides in Franklin, Massachusetts.
She is the other principal shareholder of Trustcap.
At all relevant times, Laurie Foster served as vice president of Trustcap, secretary of SFI,
At all relevant times, she was also a registered representative of Securities Service
SFI and MCM were at all relevant times wholly-owned subsidiaries of Trustcap.
Bolla was a 17 percent shareholder of Trustcap and served as its vice president of marketing
E. On June 19, 2000, a final judgment was entered against James Foster, Laurie Foster, Bolla
Each of the Respondents consented to entry of the final judgment without admitting or denying
F. The Commission's Complaint alleged,, that between early 1995 and October 1996, the
stent with the clients' stated investment objectives without disclosing this change to the clients;
the required safeguards.
The Complaint further alleged, that between early 1995 and October 1996, the Respondents
Laurie Foster is barred from association with any investment adviser and any broker- dealer,
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