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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
ACT INVESTMENT SECURITIES ADVISERS ACT EXCHANGE COMMISSION ADMINISTRATIVE PROCEEDINGS DISTRICT COURT MICHAEL BATTERMAN RANDALL INSTITUTING PURSUANT PERMANENT FUND ALLEGATIONS JUDGEMENT PERMANENTLY ENJOINING FUTURE VIOLATIONS THEREUNDER DISGORGE CONSISTING INVESTORS PLUS PREJUDGMENT IMPOSING CIVIL PENALTY CIV LAP ADMINISTRATIVE LAW JUDGE RESPONDENTS DISPUTE REMEDIAL SANCTIONS |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Investment Advisers Act of 1940
Release No. 2171 / September 15, 2003
Admin. Proceeding File No. 3-11259
In the Matter of Michael Batterman and Randall B. Batterman III
The Securities and Exchange Commission ("Commission") announced today
that it issued an Order Instituting Public Administrative Proceedings
Pursuant to Section 203(f) of the Investment Advisers Act of 1940
("Order") against Michael Batterman ("M. Batterman") and Randall
Batterman ("R. Batterman"), both residents of Hackensack, New Jersey.
In the Order, the Division of Enforcement alleges that the United
States District Court for the Southern District of New York has issued
permanent injunctions against M. Batterman and R. Batterman, and found
them liable for using fraudulent misrepresentations and omissions of
material fact to defraud five investors, who were M. Batterman's
advisory clients, into purchasing at least $925,000 of the securities
of Dynasty Fund Ltd., ("Dynasty"), an open-end investment management
company controlled by M. Batterman.
The Commission instituted this administrative proceeding after the
District Court entered a final judgment against M. Batterman and R.
Batterman (1) permanently enjoining them from future violations of
Section 17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and
Sections 206(1) and 206(2) of the Investment Advisers Act of 1940
("Advisers Act"); (2) ordering M. Batterman and R. Batterman each to
disgorge $837,182, consisting of $475,000 in funds misappropriated
from investors plus prejudgment interest of $362,182; and (3) imposing
on each a civil penalty of $250,000. , 00 Civ. 4835 (S.D.N.Y) (LAP).
A hearing will be scheduled before an administrative law judge to
determine whether the allegations contained in the Order are true, to
provide Respondents an opportunity to dispute these allegations, and
to determine what, if any, remedial sanctions against M. Batterman and
R. Batterman are appropriate and in the public interest pursuant to
Section 203(f) of the Advisers Act.
_________________________________________________________________
Modified 09/15/2003
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