SEC v WILLIAM M. STEPHENS RELEASE NOS. 33-7866, 34-42941, et al


\|

Keywords & Phrases

CaseNo: 33-7866, Defendant: William M. Stephens Release Nos. 33-7866, 34-42941, IA-1878, Plaintiff: SEC, State: CA California, UniqueCaseRef: SEC>33-7866, Investment, Union Funds, Stephens, Securities, Act, Exchange, Fraudulent Investments, Investment Advisers, Bribery Scheme, Assets, Portion, Stock, Exchange Commission, William, Instituting, Alleges, Kickback, Advisory, Clients, Investment Vehicles, Bribe, Trustees, Union Fund Officials, Trade, Hedge Fund, Futures, Commodities, Disclose, True Nature, Thereunder , ContentID: 120244601

Case Documents

2000-06-14

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 111335

2 pages
HTML

Total Documents: 1 document , 2 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

UNION FUNDS
STEPHENS
SECURITIES
ACT
EXCHANGE
FRAUDULENT INVESTMENTS
INVESTMENT ADVISERS
BRIBERY SCHEME
ASSETS
PORTION
STOCK
EXCHANGE COMMISSION
WILLIAM
INSTITUTING
ALLEGES
KICKBACK
ADVISORY
CLIENTS
INVESTMENT VEHICLES
BRIBE
TRUSTEES
UNION FUND OFFICIALS
TRADE
HEDGE FUND
FUTURES
COMMODITIES
DISCLOSE
TRUE NATURE
THEREUNDER

SECURITIES AND EXCHANGE COMMISSION

   Securities Act of 1933
   Release No. 7866 / June 14, 2000

   Securities Exchange Act of 1934
   Release No. 42941 / June 14, 2000

   Investment Advisers Act of 1940
   Release No. 1878 / June 14, 2000

   Investment Company Act of 1940
   Release No. 24497 / June 14, 2000

   Admin. Proceeding File No. 3-10231

   In the Matter of William M. Stephens

   The Securities and Exchange Commission today instituted public
   administrative proceedings against William M. Stephens, the Chief
   Investment Strategist of Husic Capital Management, a registered
   investment adviser located in San Francisco, California. The Order
   instituting proceedings alleges that, from March 2000 to the present,
   Stephens engaged in the following unlawful conduct

   Stephens entered into a kickback and bribery scheme concerning the
   investment of assets of certain labor union pension funds (the Union
   Funds). In order to attract the Union Funds as advisory clients,
   Stephens agreed to channel a portion of the Union Fund assets into
   rigged investment vehicles that would generate bribe payments to
   certain members of the boards of trustees of the Union Funds.

   Stephens had initial discussions with an intermediary who was able to
   influence the Union Funds selection of investment advisers. Stephens
   agreed, before entering into any advisory relationship, to direct a
   portion of the Union Funds to investment vehicles (the Fraudulent
   Investments) that would be presented to him by the intermediary.
   Stephens understood that a portion of the client assets that he would
   place in the Fraudulent Investments would then be siphoned out and
   paid to certain Union Fund trustees as bribes or kickbacks.

   The Fraudulent Investments were designed to appear legitimate, so as
   to withstand scrutiny by Union Fund officials who were not complicit
   in the bribery scheme. The Fraudulent Investments included

     * A Series J Preferred Stock to be issued by American Realty Trust,
       Inc., a company whose securities trade on the New York Stock
       Exchange; and

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934

Investment Advisers Act of 1940

The Securities and Exchange Commission today instituted public administrative proceedings

The Order instituting proceedings alleges that, from March 2000 to the present, Stephens

Stephens entered into a kickback and bribery scheme concerning the investment of assets of

In order to attract the Union Funds as advisory clients, Stephens agreed to channel a portion

Stephens had initial discussions with an intermediary who was able to influence the Union

Stephens agreed, before entering into any advisory relationship, to direct a portion of the

The Fraudulent Investments were designed to appear legitimate, so as to withstand scrutiny by

* A Series J Preferred Stock to be issued by American Realty Trust, Inc., a company whose

Stephens did not disclose the bribery scheme, or the true nature of the Fraudulent

The Order alleges that Stephens willfully violated Sections 206and 206of the Investment


\|