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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION MANAGEMENT SCHEME ALBRIOND SECURITIES EXCHANGE COMMISSION ALAN BOND MONEY MANAGER LITIGATION UNITED STATES CONVICTION INVESTMENT FRAUD CHERRY PICKING TRADES ACCOUNT CLIENT ALBRIOND CAPITAL MANAGEMENT LLC CIVIL FRAUDULENT CHERRY PICKING BROKERAGE COMMISSION KICKBACKS SEEKING PERMANENT INJUNCTIONS CIVIL MONEY PENALTIES DISGORGEMENT ALAN BRIAN BOND ROBERT SPRUILL CIVIL ACTION |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17560 / June 12, 2002
United States v. Alan Bond, 01-CR-1140 (S.D.N.Y.)
On June 10, 2002, former money manager Alan Bond (Bond) was convicted
of six counts of federal criminal investment adviser fraud and wire
fraud. Bond's conviction related to a "cherry picking" scheme in which
Bond illegally allocated profitable trades to his own personal account
and allocated the vast majority of unprofitable trades into client
accounts that he managed through his money management firm, Albriond
Capital Management, LLC (Albriond). As a result of this scheme, Bond's
clients lost nearly $54 million, while Bond gained approximately $5.5
million, an investment return of over 5,000%. Bond, who faces nine to
eleven years in prison, was indicted on December 7, 2001, by the
United States Attorney's Office for the Southern District of New York
for his fraudulent cherry picking scheme. Bond had previously been
indicted and sued by the Securities and Exchange Commission
(Commission) in December 1999 on a different scheme in which Bond
received millions of dollars in brokerage commission kickbacks. The
Commission is seeking permanent injunctions and civil money penalties
against Bond and Albriond, and disgorgement from Bond. (Securities and
Exchange Commission v. Alan Brian Bond, Robert I. Spruill and Albriond
Capital Management, LLC, Civil Action No. 99 Civ. 12092 (RO)
(S.D.N.Y.))
For additional information, see Litigation Release Nos. (August 10,
2001) and (December 16, 1999).
_________________________________________________________________
Modified 06/12/2002
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