SEC v CHRIS WOESSNER ROBERT G. MAHONY, et al


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Keywords & Phrases

CaseNo: 225, Defendant: Chris Woessner Robert G. Mahony, Administrative Law Judge File No. 3-10607, Plaintiff: SEC, UniqueCaseRef: SEC>225, Duff, Phelps, Woessner, Investment Adviser, Commission, Clients, Violation, Advisers Act, East West, Securities, Pursuant, Brokerage, Administrative Law Judge, Stevens, Exchange Commission, Investment Management Company, Proceeding, Performance Analytics, Respondent, Rauscher Pierce, Chris Woessner, Relevant Period, Fitzgerald, United States, Oip, Instituting, Registered Investment Adviser, Marketing, Senior Vice President, Soft Dollars , ContentID: 120255921

Case Documents

2003-03-19

SEC ADMINISTRATIVE LAW JUDGE DECISION
[ see first page and extracted highlights below ] ItemID: 133211

22 pages
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Total Documents: 1 document , 22 pages

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1 . SEC ADMINISTRATIVE LAW JUDGE DECISION

EXTRACTED KEY WORDS

PHELPS
WOESSNER
INVESTMENT ADVISER
COMMISSION
CLIENTS
VIOLATION
ADVISERS ACT
EAST WEST
SECURITIES
PURSUANT
BROKERAGE
ADMINISTRATIVE LAW JUDGE
STEVENS
EXCHANGE COMMISSION
INVESTMENT MANAGEMENT COMPANY
PROCEEDING
PERFORMANCE ANALYTICS
RESPONDENT
RAUSCHER PIERCE
CHRIS WOESSNER
RELEVANT PERIOD
FITZGERALD
UNITED STATES
OIP
INSTITUTING
REGISTERED INVESTMENT ADVISER
MARKETING
SENIOR VICE PRESIDENT
SOFT DOLLARS

Initial Decision of an SEC Administrative Law Judge

Chris Woessner

                                         INITIAL DECISION RELEASE NO. 225
                                                ADMINISTRATIVE PROCEEDING
                                                         FILE NO. 3-10607

                          UNITED STATES OF AMERICA
                                 Before the
                     SECURITIES AND EXCHANGE COMMISSION
     _________________________________________________________________

   In the Matter of

   CHRIS WOESSNER
     _________________________________________________________________

   INITIAL DECISION

   March 19, 2003

   APPEARANCES Martin F. Healey and Alix Biel for the Division of
   Enforcement, Securities and Exchange Commission

   William Shaw McDermott, Jacqueline Edwards, and Brian Sheppard for
   Respondent
   BEFORE Robert G. Mahony, Administrative Law Judge

                                INTRODUCTION

   The Securities and Exchange Commission (Commission) instituted this
   proceeding by an Order Instituting Proceeding (OIP) on September 28,
   2001, pursuant to Sections 203(f) and 203(k) of the Investment
   Advisers Act of 1940 (Advisers Act) to determine whether Respondent
   Chris Woessner (Respondent or Woessner) willfully aided and abetted
   and caused violations of Sections 206(1) and 206(2) of the Advisers
   Act.

   The OIP alleges that from about mid-1994 to mid-1997 (relevant
   period), Duff & Phelps Investment Management Company, Inc. (Duff &
   Phelps), a registered investment adviser, failed to disclose to its
   clients that it used more than $715,000 of its clients' equity
   commissions to compensate East West Institutional Services, Inc. (East
   West), a registered broker-dealer, and Performance Analytics, Inc.
   (Performance Analytics), a registered investment adviser, for referral
   of the International Brotherhood of Teamsters Union Local 710 (Local
   710) pension fund account. (OIP at 1-2.) The OIP further alleges that

SNIPPETS:

Initial Decision of an SEC Administrative Law Judge

Chris Woessner

APPEARANCES Martin F. Healey and Alix Biel for the Division of Enforcement, Securities and

William Shaw McDermott, Jacqueline Edwards, and Brian Sheppard for Respondent

The Securities and Exchange Commission instituted this proceeding by an Order Instituting

The OIP alleges that from about mid-1994 to mid-1997, Duff & Phelps Investment Management

The OIP further alleges that Woessner willfully aided and abetted and caused Duff & Phelps to

From 1990 to 1992, he worked with Calvin Pedersen, then Senior Vice President of Marketing,

Roach explained to Woessner that East West was a brokerage firm that cleared its trades

Woessner and Pedersen then met with Wayne Stevens, the President and Chief Investment Officer

Woessner testified that Stevens got "quite excited" when he learned that Rauscher Pierce was

In late 1994, Timothy Fitzgerald, Duff & Phelps's head equity trader, first learned of East

He understood that the commissions, which were in soft dollars, were to benefit Duff &

For the foregoing reasons, I conclude that Duff & Phelps breached its fiduciary duty to its

"The defense of laches is not available against a United States government agency acting in

The Commission determines sanctions pursuant to a public interest standard.

Ultimately, Duff & Phelps became a wholly owned subsidiary of Phoenix Investment Partners,


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