SEC v HARRY MICHAEL SCHWARTZ - Legal Case Documents


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SEC v HARRY MICHAEL SCHWARTZ

Keywords & Phrases

CaseNo: IA-1833, Defendant: Harry Michael Schwartz, Plaintiff: SEC, State: OR Oregon, UniqueCaseRef: SEC>IA-1833, Investment Company, Adviser, Schwartz, Act, Expense, Reimbursement, Commission, Employer, Proceeding, Violation, Payment, Trustees, Capital Contribution, President, Bar Order, Meetings, Expense Reimbursement Agreement, Limitation, Disclose, Securities, Exchange Commission, Instituting, Findings, Associating, Money, Obligations, Specified Limitation, Amounts, Poor Financial Condition, Report , ContentID: 120245283

Case Documents

1999-09-27

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 112022

6 pages
HTML

Total Documents: 1 document , 6 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

ADVISER
SCHWARTZ
ACT
EXPENSE
REIMBURSEMENT
COMMISSION
EMPLOYER
PROCEEDING
VIOLATION
PAYMENT
TRUSTEES
CAPITAL CONTRIBUTION
PRESIDENT
BAR ORDER
MEETINGS
EXPENSE REIMBURSEMENT AGREEMENT
LIMITATION
DISCLOSE
SECURITIES
EXCHANGE COMMISSION
INSTITUTING
FINDINGS
ASSOCIATING
MONEY
OBLIGATIONS
SPECIFIED LIMITATION
AMOUNTS
POOR FINANCIAL CONDITION
REPORT

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

   INVESTMENT ADVISERS ACT OF 1940
   Release No. 1833 / September 27, 1999

   INVESTMENT COMPANY ACT OF 1940
   Release No. 24053 / September 27, 1999

   ADMINISTRATIVE PROCEEDING
   File No. 3-10029
   In the Matter of
   HARRY MICHAEL SCHWARTZ,
   Respondent. ORDER INSTITUTING PUBLIC ADMINISTRATIVE AND
   CEASE-AND-DESIST PROCEEDING PURSUANT TO SECTIONS 203(f) AND (k) OF THE
   INVESTMENT ADVISERS ACT OF 1940 AND SECTIONS 9(b) AND (f) OF THE
   INVESTMENT COMPANY ACT OF 1940, MAKING FINDINGS AND IMPOSING SANCTIONS
   AND CEASE-AND-DESIST ORDER

   I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate and in the public interest that a public administrative
   and cease-and-desist proceeding be instituted pursuant to Sections
   203(f) and (k) of the Investment Advisers Act of 1940 ("Advisers
   Act"), and Sections 9(b) and (f) of the Investment Company Act of 1940
   ("Investment Company Act") against Harry Michael Schwartz
   ("Schwartz").

   II.

   In anticipation of the institution of this proceeding, Schwartz has
   submitted an Offer of Settlement ("Offer") 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, and without admitting or denying any
   findings contained herein, except that Schwartz admits to the
   jurisdiction of the Commission over him and over the subject matter of
   this proceeding, Schwartz consents to the issuance of this Order
   Instituting Public Administrative and Cease-and-Desist Proceeding
   Pursuant to Sections 203(f) and (k) of the Investment Advisers Act of
   1940 and Sections 9(b) and (f) of the Investment Company Act of 1940,
   Making Findings and Imposing Sanctions and Cease-and-Desist Order
   ("Order").

   Accordingly, IT IS ORDERED that a proceeding pursuant to Sections
   203(f) and (k) of the Advisers Act and Sections 9(b) and (f) of the

SNIPPETS:

INVESTMENT ADVISERS ACT OF 1940

ADMINISTRATIVE PROCEEDING

INVESTMENT COMPANY ACT OF 1940, MAKING FINDINGS AND IMPOSING SANCTIONS AND CEASE-AND-DESIST

The Securities and Exchange Commission deems it appropriate and in the public interest that a

Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of

Schwartz, age 31, has been associated with the following Commission-registered entities from

In July 1992, Schwartz's employer consented to a Commission administrative order (the "1992

The 1992 Bar Order was based on, among other things, findings that Schwartz's employer caused

The trustees approved this expense reimbursement agreement at an August 1996 trustees meeting.

The Adviser agreed to reimburse the Investment Company by December 31, 1997, for all amounts

The payment, for $525,000, was made to the Investment Company in mid-February 1998, only

The report disclosed, among other things, that the Adviser had agreed to limit the Investment

The omissions and misstatement were material because reasonable investors likely would have

Schwartz thus willfully violated Section 34of the Investment Company Act, and willfully aided

J. At two Investment Company board meetings in 1996, at which trustees approved the expense


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