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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
MANAGEMENT INVESTMENT ADVISER SECURITIES MONEY MANAGER STEVIN INVESTMENT ADVISORY CLIENTS CHESTNUT MANAGEMENT EXCHANGE LITIGATION PRISON SECURITIES FRAUD DEFRAUD DISTRICT ACCOUNTS HOOVER PLEADED GUILTY VIOLATION INVESTMENT ADVISERS ACT CHARGING SCHEME HOOVER SPENT MISAPPROPRIATED MONEY LUXURY AUTOMOBILE WIFE PAYING PERSONAL CREDIT CARD CREDIT CARD DEBT CIVIL ENFORCEMENT ACTION HCM PENDING NOS |
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17825 / November 1, 2002
, Civ. A. No. 01 CV 10751 (RGS) (D. Mass.)
MONEY MANAGER STEVIN R. HOOVER SENTENCED TO 18 MONTHS IN PRISON FOR
SECURITIES FRAUD
Former money manager Stevin R. Hoover was sentenced to 18 months in
prison yesterday on charges that he defrauded investment advisory
clients out of nearly $200,000. Hoover, age 54, was sentenced by Judge
Douglas P. Woodlock of the U.S. District Court for the District of
Massachusetts to 18 months imprisonment, followed by 3 years of
supervised release during which Hoover will be barred from providing
any financial services or acting as the custodian for funds belonging
to other people.
Hoover is the sole owner of Hoover Capital Management, Inc. ("HCM"), a
registered investment adviser, and Chestnut Management LLC ("Chestnut
Management"), an unregistered investment adviser. On August 7, 2002,
Hoover pleaded guilty to one count of securities fraud in violation of
Section 206 of the Investment Advisers Act of 1940 charging that
Hoover engaged in a scheme to defraud his investment advisory clients
by diverting nearly $200,000 from client accounts to his own account.
Hoover spent the misappropriated money on such things as a luxury
automobile for his wife and paying off personal credit card debt.
The Securities and Exchange Commission's civil enforcement action
against Hoover, HCM and Chestnut Management remains pending.
For more information see Litigation Release Nos. (August 8, 2002),
(April 24, 2002), (December 19, 2001), (November 19, 2001), (November
16, 2001) and (May 2, 2001).
_________________________________________________________________
Modified 11/01/2002
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