UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
RELEASE NO. 1819 / September 8, 1999
INVESTMENT COMPANY ACT OF 1940
RELEASE NO. 23996 / September 8, 1999
ADMINISTRATIVE PROCEEDING
FILE NO. 3-10002
In the Matter of
Van Kampen Investment Advisory
Corp. and Alan Sachtleben,
Respondents. ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS, IMPOSING
REMEDIAL SANCTIONS AND ORDERING RESPONDENTS TO CEASE AND DESIST
PURSUANT TO SECTIONS 203(e), 203(f) AND 203(k) OF THE INVESTMENT
ADVISERS ACT OF 1940 AND SECTIONS 9(b) AND 9(f) OF THE INVESTMENT
COMPANY ACT OF 1940
I.
The Securities and Exchange Commission (Commission) deems it
appropriate and in the public interest that public administrative
proceedings be instituted against Van Kampen Investment Advisory Corp.
(Van Kampen Advisory) and Alan Sachtleben (Sachtleben), (collectively,
Respondents), pursuant to Sections 203(e), 203(f) and 203(k) of the
Investment Advisers Act of 1940 (Advisers Act) and Sections 9(b) and
9(f) of the Investment Company Act of 1940 (Investment Company Act).
In anticipation of the institution of these proceedings, Respondents
have submitted an Offer of Settlement (Offer) which the Commission has
determined to accept. Solely for the purpose of these proceedings and
any other proceedings brought by or on behalf of the Commission, or to
which the Commission is a party, and without admitting or denying the
Commission's findings contained herein, except the Commission's
findings set forth in Paragraphs III. A. through III. D., which are
admitted, Respondents consent to the entry of this Order Instituting
Proceedings, Making Findings, Imposing Remedial Sanctions and Ordering
Respondents to Cease and Desist pursuant to Sections 203(e), 203(f)
and 203(k) of the Advisers Act and Sections 9(b) and 9(f) of the
Investment Company Act (Order).
II.
Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to
Sections 203(e), 203(f) and 203(k) of the Advisers Act and Sections
SNIPPETS:
INVESTMENT ADVISERS ACT OF 1940
ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS, IMPOSING
REMEDIAL SANCTIONS AND ORDERING RESPONDENTS TO CEASE AND DESIST
203AND 203OF THE INVESTMENT ADVISERS ACT OF 1940 AND SECTIONS 9AND 9OF THE INVESTMENT
The Securities and Exchange Commission deems it appropriate and in the public interest that
Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
Van Kampen Advisory, a Delaware corporation headquartered in Oakbrook, Illinois, has been
At all relevant times, Van Kampen Advisory was the investment adviser for, among others, the
He served as the Chief Investment Officer for Equity Investments for Van Kampen Advisory and
Van Kampen Funds Inc., formerly Van Kampen Distributors Inc., a broker-dealer registered with
E. From its inception on or about December 27, 1995 to on or about February 3, 1997, the
Van Kampen and persons affiliated with Van Kampen provided seed money for the Growth Fund.
During the last quarter of 1996, senior management of Van Kampen Advisory and Van Kampen
The Board of Trustees for the Growth Fund, which was required to approve the opening of any
H. On or shortly after January 7, 1997, Sachtleben received a copy of a December 31, 1996
The article highlighted concerns associated with small funds advertising impressive one-year
The article further stated that Van Kampen Advisory could have given "a small fund like
Because the fund is so small, any one-shot gains will make a big difference in performance."
In mid-January 1997, shortly after he received the Street Article, Sachtleben directed one of
During that period, the number of shareholders increased from 14 to 14,883 and the Growth
The Fact Card prominently displayed the Growth Fund's 61.99% return and its #1 Lipper
These statements were also included in the Growth Fund's December 31, 1996 semi-annual report
Pursuant to Section 203of the Advisers Act and Section 9of the Investment Company Act, Van
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