UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Act of 1933
Release No. 7727 / August 19, 1999
Securities Exchange Act of 1934
Release No. 41761 / August 19, 1999
Investment Company Act of 1940
Release No. 23952 / August 19, 1999
Administrative Proceeding
File No. 3-9788
In the Matter of
MICHAEL P. TRABA,
Respondent.
ORDER MAKING FINDINGS AND
IMPOSING REMEDIAL SANCTIONS
I.
On December 10, 1998, the Securities and Exchange Commission
("Commission") deemed it appropriate and in the public interest to
institute proceedings pursuant to Section 8A of the Securities Act of
1933 ("Securities Act"), Sections 15(b) and 21C of the Securities
Exchange Act of 1934 ("Exchange Act"), and Sections 9(b) and 9(f) of
the Investment Company Act of 1940 ("Investment Company Act") against
Michael P. Traba ("Traba").
In response to the institution of these proceedings, Traba has
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 in
which the Commission is a party, and without admitting or denying the
allegations, findings of fact or conclusions of law contained herein,
except for jurisdiction and the findings contained in Sections II.4.
and II.18. which are admitted, Traba, by his Offer, consents to the
issuance of this Order Making Findings and Imposing Remedial
Sanctions.
II.
On the basis of this Order and the Offer submitted by Traba, the
Commission makes the following findings
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
On December 10, 1998, the Securities and Exchange Commission deemed it appropriate and in the
Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
The First Prairie Cash Management Fund, is an open-end, diversified, management investment
The First Prairie Money Market Fund is an open-end, diversified, management investment
From at least January 1993 through at least October 1994, The First National Bank of Chicago
From at least August 1993 until October 1994, Traba was employed by First Chicago as a senior
At all relevant times, the Funds were marketed as money market funds, seeking to maintain a
Between March and August 1993, Traba caused the Cash Management Fund to purchase for its
Traba caused the MM Series Fund to purchase for its portfolio two derivatives.
During this time period, the market value of the derivatives fell substantially.
The continued use of amortized cost in the face of the steep market decline for these
As a result, during this time period, the Funds sold and redeemed shares at the price of
Between about June 25 and August 4, 1994, Traba caused the derivatives to be sold out of the
Between September 23 and September 27, 1994, Traba caused one of the derivatives to be sold
Traba caused the Custody Account to purchase a Tennessee Valley Authority Note ("TVA Note")
Traba willfully violated Section 34of the Investment Company Act and willfully aided and
Traba willfully violated Section 17of the Securities Act of 1933 in that, directly or
ade, in the light of the circumstances under which they were made, not misleading; or engaged in
Such payments shall be made by United States postal money order, certified check, bank
tter and money order or check shall be sent to Christine Berry, Securities and Exchange Commission,
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