You are currently browsing the category archive for the ‘Delaware’ category.

You may like him because he’s a nice guy.  But someone’s got to pay that money back, and you know it will be you…  Why would anyone double their debt?   It’s real money  you are giving up, and with no collateral….  Why would anyone go to the trouble of writing in someone who cost them $7.5 million and was about to do it twice?

Especially when you have a normal Sheriff who will save you money, as in Bob Lee……

There is Common Core.

There is gross inequality of the top 1%.

There is the need for money.

There is the need to tax the top 1%.

There is the need for a minimum wage that is livable.

There is a need for more funding to keep our infrastructure intact.

There is a need for more cash applied to educating those in poverty.

There is a need for more power not made from carbon.

There is a need to actively insist on lower greenhouse emissions.

There is a need to spend money to buttress our seashores.

There is a need to spend money on fighting diseases such as Ebola.

There is a need to have and 11:1 student teacher ratio in schools at greater than 50% reduced lunch.

There is a need to let teachers teach.

There is a need to make sure all children get three good meals a day.

There is a need to make sure all children receive vaccinations.

There is a need to make sure all failed bridges are repaired.

There is a need to make sure that all Americans can get medical coverage.

There is a need to build for more dams as the West gets parched.

There is a need for higher Social Security payments to those who lost their IRA’s in the last Depression.

There is a need for preserving wildlife rapidly becoming extinct.

There is a need for putting people to work in a CCC type of organization that leaves a lasting legacy on the American landscape.

There is a need for women to never worry about unwanted pregnancies.

There is a need for minorities to never worried about being treated like they are not the majority race.

—===—

As you can see. there is a need.  As you can see some people have all the money.  As you can see the only solution is to tax those at the top fairly (at the highest possible rate) and spend that in rebuilding our nation… Consider it as an equity loan given to the wealthy, whose payment has now come due…..

If nothing major ripples the water, it will all come down to Common Core.

Simpler as being against it… Period.

Barney as being for it!   “Woot, woot, yeah, yeah.. corporate money in MY pocket” sort of being for it…

Like a game between two really equal teams, I expect a lot of defense action the first three quarters and then things open up in the fourth…

(So It’s ok to turn away, and come back when the clock is about to run out… )

Delaware’s Unions, particularly the Building and Trades, have over-stepped.  In a world where the one percent owns 45% of America’s assets, where billions are being spent to destroy unions in every capacity, where the middle class has succumbed to its worst level since 1880, the rat-demon that the Building and Trades chose to blacken, was Delaware’s biggest friend of labor, John Kowalko.

There is something very sick in Delaware’s unions…  That this was ever allowed shows complicity with the 1%.

The only people hurt by not putting the power plant inside the University of Delaware, were those investors who spent $800,000 and got nothing.  It would be safe to say none of them were of the 99%.   When something else goes in, those jobs will be there as well.  Labor did not lose one job…

Instead, we just got further proof that in Delaware, labor has been coerced, infiltrated, and is being run by the 1%… No normal working man would want to poison 30,000 people into cancer by his efforts.  We all know the 1% have no qualms with killing people as long as they make over 5%…..

Organized labor is no longer working for its members.  Whether it is the DSEA, AFSCME, or the Building Trades, the lack of new jobs here in Delaware is due to only one thing.  Their coziness with those with money… the big 5 developers and their friend, the governor.

I know the details of why there is a history behind it this coziness.. But there was also a history behind Colonial America and Great Britain… But at some point a split had to occur.

When you have Quisling leaders telling their members that “yeah, they are doing everything they can”, and at the same time telling the Delaware Way that they “got their people handled”, it is their members who are getting royally screwed…..

It is past time to scrap old leaders.  It is past time for new aggressive leadership, someone in their 30’s..  It is time for work stoppages again.  It is time for muscle…  When you have our ex-heroes, “organized labor”, those who built the America we had (at least up through 2000),  attacking their most ardent legislative supporter in the General Assembly because he wouldn’t go along and maliciously kill 30,000 of his constituents with cancer, you have a corrupt and poorly lead organization…. They are not working for their members; they are working for Charlie Copeland!

I hereby pull my support for prevailing wage….  and urge John Kowalko and every legislator elected from the Greater Newark Area up through Hockessin to do so as well. … 

Until unions get new aggressive leadership who will daringly take on the Delaware Way and grind it up and crush it, forget it, I won’t reconsider. 

 

if you are a Republican, and distraught at how the Republican Party has dissipated over the past 10 years here in Delaware, and wish it would revive, you need to take control of your party from the henchmen, and vote Simpler over Sher….

Simpler was running this race, and Sher came in at literally the last half hour forcing a primary.  The News journal quotes that she had conversations with Charlie Copeland and he convinced her to run.  From her campaign, and her spread in today’s News Journal, it is obvious what transpired…

Simpler was not a rabid Republican.  The party’s ideologues felt he could not become the state’s only Republican winner which he had a chance to become, and now with Chip Flower’s being out of the race, he is running against someone even Democrats don’t like:…. Tom Carper’s little buddy….  So by adding all the Republicans, and half the Democrats who don’t appreciate Tom Carper, you get 60% of the vote… Looks like a Republican can finally take one office….

But in comes Charlie Copeland with assurances of support for Sher, and convinces her to jump in….

It would be wise for Republicans to reflect, that ever since Charlie Copeland emerged into making the upper judgments of the Republican Party, they have literally slid into a hole with slippery mud walls….  From being a strong contender to a joke, that entire party structure has become… And now, finally when a good candidate emerges, he scrambles to scuttle him.

If Republicans don’t want to completely toss in the towel, they need to get off their ass this September 9th, and vote for the most qualified treasurer candidate we have ever seen.  And then, after these elections, begin to change their party from the top down….

 

Great coach…

How did he get picked again?

Please Riot Here

When riots happen in Wilmington, which i’m sure they will, I hope they will learn from Ferguson Missouri’s mistake.

That mistake is to riot in your own neighborhood… That is just plain silly. Did we attack ourselves when the Japs bombed Pearl Harbor? Or did we wage war with Japan?

Why people would loot and burn in their own neighborhood, is beyond me. I write this now, so when the opportunity to riot does occur, those with above average intelligence will have a plan to move the crowd out of their impoverished neighborhood, and instead riot in neighborhoods where the a) the loot is much better, and b) those responsible for the policy that has kept you down since Clinton left office, are directly affected. If you are going to riot, you should do in on the enemies home turf. Republican Country.

A riot has a purpose. It is to change things. To make things better by creating a situation that is worse than doing nothing, therefore something has to be done. Blacks didn’t protest on the back seat of the bus. They sat in the white section. Black students didn’t do their sit-in at the black counter. They did it at the white. Black students didn’t march into Tuskegee Institute with the National Guard. They marched into the all white University of Alabama. Martin Luther King didn’t do his marches within all black neighborhoods. He marched across the bridge into downtown white Selma….

So battling police in your own neighborhood, looting your own corner store, burning out yours and your neighbor’s houses, kind of double hurts you. Not only are you being oppressed by Republican Policies, but you are also setting those who support you, back even more….

So I’m writing this to tell you where to protest so it will do you some good.

It is called Westover Hills. There aren’t many people living there, but those that do are rich and very old and feeble. They couldn’t stop a crowd breaking into their house if they tried. Plus, when you loot, you could actually get something you could sell. Whose going to buy all the banana flavored Laffy Taffy you stole from the corner market? But you could easily swipe a Bose Stereo, or maybe find a safe with a couple of hundred thousand in it.

And instead of hurting mom and pop, or Uncle Joe and Aunt Alice, you would be hurting those whose money is directly responsible for you not having a good job, a good house, a good future. Those in Westover Hills vote Republican and it is Republicans who have allowed all the money to go to the top 1%… and none to you…

If you remember the Clinton Democratic years, it was different. You, or your mom and dad, did get richer every year and if that had only continued, you would have been doing rather well by now. But you got lazy and enough of you didn’t vote for Democrats in 2000 and now, we are stuck with the rich getting richer, and you and your neighbors, getting poorer…

So take the number 20 bus from 10th and Market side of Rodney Square and in 8 minutes and 15 stops later, you will be just north of the riot zone. Do your peaceful protests there, in the middle of the streets, and shout how Republicans have ruined everyone’s lives but those of themselves… When the riot police arrive with their single tank and tear gas, make them fire it at you so all those rich billionaires have to breath it too. Then when all hell breaks loose, break into the houses and rob yourselves silly. Don’t even worry. Unlike those corner stores, everything you take here is fully insured… Destroying their property, will in days, put all Delaware’s construction workers back to work. These guys are rich. They don’t dilly-dally around.

The main point is this? When you riot in your own neighborhoods which these Republicans never venture into, it only serves to reinforce their notion of you as a sub-human race. “Look at those pathetic people”, they will say over their Maker’s Mark and Hennessey, “they’re tearing up their own neighborhood. Maybe we should keep them doing it so they move and haul their sorry asses elsewhere.”

They will not be in any hurry to lift one finger… “make them suffer more” will be their outcry. But … if you do it in THEIR neighborhood, they will at least wonder why? In their asking around, what’s the real cause of these people rioting, they will come to the conclusion that they, with all the money, need to invest more, need to hire more, need to pay more, and that if they had previously invested more in our people, this riot would never have happened. That is your key… Getting them to call their out-of-pocket legislators and say, “raise my taxes; we can’t afford any more riots like these, even if we are insured. It’s the third time this year. I’m too tired for another round of tax free shopping!”…

You can even walk there. So forget the bus. Just send the coordinates out on social media, and anyone with a phone app can get there…. It is pointless for you to have to bear the cost and trauma of what THEY caused. It makes such great sense for them to bear that cost, and after doing so, quickly create the changes you need to pull yourselves out of poverty…

So pastors and neighborhood watch leaders. Start talking your kids to riot in Westover Hills, instead of your own street. Isn’t it about time, the real criminals get to feel the heat?

They are the ones who put you there…. Make THEM pay, not those who are poor like you. And pick up something nice for me while you are there… A nice oriental carpet would be cool… blue and white if you find one.

THEY’RE ON A MISSION FROM GOD

Reading through it, though it doesn’t dissect and explain by tearing the subject apart in piecemeal, …. it does through its examples provide overwhelming evidence as to why the founding fathers were very emphatic in separating church from state. After all, they had their religious nuts too…as anyone who has read 18th Century early American pamphlets well knows…

Reading this piece makes one understand, if they never did before, the true wisdom of a collection of men, selected by their peers, bestowed upon what at that time was basically a wilderness which became the United States of America…

Religion is personal. Deeply personal. For that reason alone, it needs to be excised from any entity, including government who has to deal with a wide spread of human beings all of which have deep personal freedoms. Both for the Constitution’s Protection, as well as the protection of each and every religion…

As background information, here is the link and below is the copy of the SEC report citing David Marvin currently of Delaware’s Cash Management Board, and fining his firm M & P, $976,000 dollars…

Here is Celia’s account of last years inside dealing, targeting Marvin as the prime whiner in the infamous Cash Management Board pushback… It just dawned on me that Marvin probably handles investments for Markell and Blevins. Which would if true, provide clarity to the mechanizations that took place this past year.

Since the 15 year expiration is about or has already hit, (it was difficult to find), I am posting the entire judgment here, so it will last, if the SEC eliminates it off-line…. Without Further Ado….

=======

 

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

 

INVESTMENT ADVISERS ACT OF 1940
Release No. 1841 / September 30, 1999

 

ADMINISTRATIVE PROCEEDING
File No. 3-10072

 

In the Matter of

MARVIN & PALMER ASSOCIATES, INC.,
DAVID F. MARVIN,
MACTHOM ASSOCIATES, INC. and
THOMAS E. DUBIS

ORDER INSTITUTING PUBLIC PROCEEDDINGS, MAKING FINDINGS, IMPOSING REMEDIAL SANCTIONS, AND ISSUING CEASE-AND-DESIST ORDER

 

I.

 

The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest to institute public administrative proceedings pursuant to Sections 203(e), (f) and (k) of the Investment Advisers Act of 1940 (“Advisers Act”), against Marvin & Palmer Associates, Inc. (“M&P”), David F. Marvin (“Marvin”), MacThom Associates, Inc. (“MacThom”) and Thomas E. Dubis (“Dubis”)(collectively “Respondents”).

 

In anticipation of the institution of these proceedings, each of the Respondents has submitted an Offer of Settlement (“Offer”) to the Commission, 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 findings contained herein, except for the jurisdiction of the Commission over them and over the subject matter of this proceeding, which is admitted, Respondents consent to the issuance of this Order Instituting Public Proceedings, Making Findings, Imposing Remedial Sanctions, and Issuing Cease-and-Desist Order (“Order”) and to the entry of the findings, cease-and-desist order, and remedial sanctions set forth below.

 

Accordingly, IT IS ORDERED that proceedings pursuant to Sections 203(e), (f) and (k) of the Advisers Act be, and hereby are, instituted.

 

II.

 

On the basis of this Order and the Offers submitted by the Respondents, the Commission makes the following findings:

 

RESPONDENTS

 

A.Marvin & Palmer Associates, Inc., incorporated and located in Wilmington, Delaware, has been registered with the Commission as an investment adviser since August 1986. As of March 11, 1999, M&P had approximately 62 clients and $7.6 billion in assets under management. M&P’s clients are primarily large institutional investors.

 

B.David F. Marvin, age 58, resides in Delaware and is Chairman, Chief Executive Officer and 50 percent owner of M&P. Marvin is the largest shareholder of M&P and is responsible for the overall management of the firm.

 

C.MacThom Associates, Inc., located in Kent, Ohio, was formed in 1996 and is wholly owned and operated by Thomas E. Dubis. The firm was ostensibly formed for the purpose of providing research services to M&P. At no time has MacThom been registered with the Commission as a broker-dealer or an investment adviser.

 

D.Thomas E. Dubis, age 58, resides in Kent, Ohio.

 

INTRODUCTION

 

E.This proceeding involves the failure of M&P, a registered investment adviser, to disclose to its clients its use of at least $920,000 in soft dollars derived from a directed brokerage arrangement with a registered broker-dealer (“Broker”) in violation of provisions of the Advisers Act. The term “soft dollars” generally describes an arrangement whereby an investment adviser uses commission credits generated by securities trades executed in advisory client accounts to pay for research, brokerage, or other products, services, or expenses.

 

THE SOFT DOLLAR ARRANGEMENT

 

F.Since 1991, M&P has maintained a soft dollar arrangement with the Broker. Pursuant to the arrangement, M&P receives $.50 in soft dollar credits for each $1.00 in brokerage commissions directed to the Broker.

 

G.In February 1996, at Marvin’s behest, M&P directed the Broker to begin paying invoices submitted by MacThom, ostensibly for research performed by MacThom for M&P. In fact, MacThom conducted only a small amount of research, with a total value of $63,000 during the relevant time period. Most of the soft dollar payments were used by MacThom to compensate Dubis, MacThom’s principal and a close friend of Marvin, as well as the family of a deceased business associate and friend of Marvin, for their efforts in making introductions and referrals to M&P in its early years. From February 1996 through August 1998, the Broker paid $920,000 to MacThom, and MacThom and Dubis paid $635,000 of this amount to this family. With the exception of the research valued at $63,000, the payments to MacThom provided no benefit to the clients of M&P whose commissions generated the soft dollars used to make the payments.

 

M&P’S FAILURE TO DISCLOSE THE SOFT DOLLAR ARRANGEMENT

 

H.Neither the existence nor the terms of the soft dollar arrangement were disclosed to M&P’s clients in their advisory contracts or otherwise. Furthermore, M&P failed to amend its Form ADV after directing the Broker to begin paying invoices from MacThom and the arrangement was never disclosed in M&P’s Form ADV in effect between February 1996 and July 1998, the period during which the arrangement was in effect.

 

I.M&P failed to disclose the types of products and services it received pursuant to its soft dollar arrangement in response to Item 12 of Part II of the Form ADV, which requires registered investment advisers to describe the factors considered in selecting brokers, including the products, research and services obtained, and any procedures used to direct client transactions to a particular broker in return for products or services.

 

J.From February 1996 to July 1998, M&P’s Form ADV reflected a “no” answer in response to Part II Item 13.A., which asked whether the adviser “receives some economic benefit (including commissions, equipment or non-research services) from a non-client in connection with giving advice to clients.” In view of its soft dollar arrangement with the Broker, and the uses to which the payments were put, this response was false.

 

K.During the period in which the arrangement was in effect, M&P amended its Form ADV on at least eight occasions. Marvin reviewed and signed all but one of M&P’s Forms ADV and amendments filed with the Commission.

 

III.

 

LEGAL ANALYSIS

 

A.An investment adviser has a duty to disclose to clients all material information which might incline an investment adviser consciously or unconsciously to render advice which is not disinterested. SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180, 191-92 (1963). A fact is material if there is a substantial likelihood that a reasonable investor would consider it important. Basic, Inc. v. Levinson, 485 U.S. 224, 231-32 (1988).

 

B.Soft dollar arrangements are material because of the potential conflict of interest arising from an adviser’s receipt of some benefit in exchange for directing brokerage on behalf of client accounts. See Kingsley, Jennison, McNulty & Morse, Inc., 55 SEC Docket 2434, 2441 (Dec. 23, 1993);Interpretive Release Concerning the Scope of Section 28(e) of the Securities Exchange Act of 1934, Exchange Act Release No. 23170, 35 SEC Docket 905, 909 (Apr. 23, 1986) (“1986 Soft Dollar Release“).

 

C.Moreover, disclosure of soft dollar arrangements is specifically required by Form ADV.1 See Oakwood Counselors, Inc., Advisers Act Release No. 1614, 63 SEC Docket 2485 (Feb. 10, 1997); S Squared Technology Corp., Advisers Act Release No. 1575, 62 SEC Docket 1560 (August 7, 1996). Form ADV embodies mandatory disclosure requirements to ensure that material information regarding brokerage placement practices and policies are disclosed to investors. See Investment Adviser Requirements Concerning Disclosure, Recordkeeping, Applications for Registration and Annual Filings, Advisers Act Release No. 664 (Jan. 30, 1979); Disclosure of Brokerage Placement Practices By Certain Regulated Investment Companies and Certain Other Issuers, Advisers Act Release No. 665 (Jan. 30, 1979) (“1979 Soft Dollar Release“).

 

D.Items 12 and 13, and Schedule F, of Part II of Form ADV require registrants to disclose soft dollar arrangements with broker-dealers. For investment advisers who have discretionary authority to select the broker-dealers to be used to execute trades in client accounts, Item 12.B. requires a description of the factors considered in selecting brokers and determining the reasonableness of their commissions. Further, Item 12.B. requires advisers to describe the “products, research and services” given to the adviser or related persons, if the value of such “products, research and services” is a factor in selecting broker-dealers.2 Item 13 requires an investment adviser to disclose and describe any arrangement whereby it either receives an economic benefit from a non-client in connection with giving advice to clients or directly or indirectly compensates any person for client referrals.3 These disclosure requirements are designed to “assist clients in determining whether to hire an adviser or continue a contract with an adviser, and permit them to evaluate any conflicts of interest inherent in the adviser’s arrangements for allocating brokerage.” Kingsley, 55 SEC Docket at 2441-42; See S Squared, Advisers Act Release No. 1575, 62 SEC Docket 1560.

 

VIOLATIONS OF SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT

 

E.Sections 206(1) and (2) prohibit an investment adviser from employing any device, scheme, or artifice to defraud clients or from engaging in any transaction, practice or course of business that operates as a fraud on clients. Sections 206(1) and (2) establish a fiduciary duty for investment advisers to act for the benefit of their clients. Transamerica Mortgage Advisers, Inc. v. Lewis, 444 U.S. 11, 17 (1979). An investment adviser’s failure to disclose its soft dollar practices violates Sections 206(1) and 206(2). Renaissance Capital Advisors, Inc., Advisers Act Release No. 1688, 1997 SEC LEXIS 2643 (Dec. 22, 1997) (Sections 206(1) and 206(2));Oakwood, Advisers Act Release No. 1614, 63 SEC Docket 2485 (Sections 206(1) and 206(2)); S Squared, Advisers Act Release No. 1575, 62 SEC Docket 1560 (Section 206(2)). Scienter is an element of a Section 206(1) violation. Steadman v. SEC, 603 F.2d 1126, 1134 (5th Cir. 1979). Proof of scienter is not required to establish a violation of Section 206(2). SEC v. Capital Gains Research Bureau, Inc., 375 U.S. at 195.

 

F.M&P willfully violated Sections 206(1) and (2) by making materially false statements and omissions in M&P’s Form ADV and by failing otherwise to disclose to its clients that M&P was using soft dollar credits to pay non-research expenses.

 

G.Marvin willfully aided and abetted and caused M&P’s violations of Sections 206(1) and (2) by knowingly or recklessly making materially false and omissive statements in M&P’s Form ADV and by failing otherwise to disclose to M&P’s clients that M&P was using soft dollar credits to pay non-research expenses.

 

H.MacThom and Dubis caused M&P’s violations of Sections 206(1) and (2) by knowingly participating in a course of conduct which they knew or should have known was a violation of M&P’s fiduciary duty to its clients.

 

I.As a result of the conduct of M&P, Marvin, MacThom and Dubis, M&P and MacThom were unjustly enriched by $857,000.

 

VIOLATIONS OF SECTION 207 OF THE ADVISERS ACT

 

J.Section 207 of the Advisers Act makes it unlawful for any person willfully to make any untrue statement of material fact in any registration application or report filed with the Commission or willfully to omit to state in any such application or report any material fact required to be stated therein.4 A person violates Section 207 by filing false amendments to Form ADV. Stanley Peter Kerry, Advisers Act Release No. 1550, 61 SEC Docket 431 (January 25, 1996).

 

K.M&P’s “no” answer to Item 13.A. in its Form ADV in effect from February 1996 forward was false. M&P was in fact receiving an economic benefit from Broker, a non-client, in the form of soft dollar credits and payments to MacThom for M&P’s benefit. M&P’s response to Item 12.B. in its Form ADV in effect from February 1996 was misleading in that the response failed to disclose that M&P was receiving non-research services from Broker in return for directing client brokerage.

 

L.M&P’s omissions and false and misleading disclosures regarding its soft dollar arrangement were material.

 

M.M&P and Marvin willfully violated Section 207 in that they made untrue statements of material fact in M&P’s Form ADV and failed to disclose in M&P’s Form ADV the existence of the soft dollar arrangement and the non-research services received from the Broker.

 

IV.

 

Based on the foregoing the Commission finds that:

 

A.M&P willfully violated Sections 206(1), 206(2) and 207 of the Advisers Act.

 

B.Marvin willfully violated Section 207 of the Advisers Act and willfully aided and abetted and caused M&P’s violations of Sections 206(1) and 206(2) of the Advisers Act.

 

C.MacThom and Dubis caused M&P’s violations of Sections 206(1) and 206(2) of the Advisers Act.

 

V.

 

In view of the foregoing, the Commission deems it appropriate to accept the Respondents’ Offers of Settlement.

 

Accordingly, IT IS HEREBY ORDERED that:

 

A.M&P shall be, and hereby is, censured;

 

B.M&P shall cease and desist from committing or causing any violation and any future violation of Sections 206(1), 206(2) and 207 of the Advisers Act;

 

C.M&P and MacThom shall, jointly and severally, within 30 days of the entry of this Order, pay disgorgement and prejudgment interest in the total amount of $976,980 to the United States Treasury. Such payment shall be: (A) made by United States postal money order, certified check, bank cashier’s check or bank money order; (B) made payable to the Securities and Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Alexandria, Stop 0-3, VA 22312; and (D) submitted under cover letter that identifies M&P and MacThom as Respondents in these proceedings, and the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Ronald C. Long, District Administrator, Philadelphia District Office, Securities and Exchange Commission, 601 Walnut Street, Suite 1120E, Philadelphia, PA 19106;

 

D.M&P shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of $50,000 to the United States Treasury. Such payment shall be: (A) made by United States postal money order, certified check, bank cashier’s check or bank money order; (B) made payable to the Securities and Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Alexandria, Stop 0-3, VA 22312; and (D) submitted under cover letter that identifies M&P as a Respondent in these proceedings, and the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Ronald C. Long, District Administrator, Philadelphia District Office, Securities and Exchange Commission, 601 Walnut Street, Suite 1120E, Philadelphia, PA 19106;

 

E.M&P shall comply with its undertakings as specified in its Offer of Settlement to perform and implement the following:

 

1.Within 60 days of the entry of this Order, M&P will revise its procedures manual to include a section setting forth policies and procedures regarding soft dollar arrangements with broker-dealers. Included in these procedures will be the requirement that all soft dollar arrangements be approved by in-house counsel employed at M&P. M&P will hold a mandatory meeting with its employees to review policies and procedures including those relating to soft dollar arrangements. Attendance at the meeting will be recorded and a copy maintained in the files of M&P.

 

2.Within 30 days of the entry of this Order, M&P will file with the Commission and provide each of its advisory clients an amended Form ADV disclosing all material terms of any soft dollar arrangement it has with any broker-dealer;

 

3.Within 30 days of the entry of this Order, M&P will provide a copy of this Order to all of its current clients;

 

4.Within 60 days of the entry of this Order, M&P will file an affidavit with the Commission’s staff, addressed to the attention of the District Administrator of the Commission’s Philadelphia District Office, 601 Walnut Street. Suite 1120E, Philadelphia, PA 19106, setting forth the details of its compliance with the undertakings set forth in subparagraphs E.1., 2. and 3. above;

 

5.For a period of one year after the entry of this Order, M&P will provide a copy of this Order to all of its prospective clients;

 

6.One year from the entry of this Order, M&P will file an affidavit with the staff of the Commission certifying its compliance with subparagraph E.5. above.

 

IT IS FURTHER ORDERED that:

 

F. Marvin shall be, and hereby is, censured;

 

G.Marvin shall cease and desist from committing or causing any violation and any future violation of Sections 206(1), 206(2) and 207 of the Advisers Act;

 

H.Marvin shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of $25,000 to the United States Treasury. Such payment shall be: (A) made by United States postal money order, certified check, bank cashier’s check or bank money order; (B) made payable to the Securities and Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Alexandria, Stop 0-3, VA 22312; and (D) submitted under cover letter that identifies Marvin as a Respondent in these proceedings, and the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Ronald C. Long, District Administrator, Philadelphia District Office, Securities and Exchange Commission, 601 Walnut Street, Suite 1120E, Philadelphia, PA 19106;

 

I.MacThom and Dubis shall cease and desist from causing any violation and any future violation of Sections 206(1) and 206(2) of the Advisers Act.

 

By the Commission.

Jonathan G. Katz
Secretary

 


 

FOOTNOTES

 

1 The “safe harbor” provided by Section 28(e) of the Securities Exchange Act of 1934 (“Exchange Act”) does not excuse an investment adviser from these disclosure obligations. The safe harbor protects an investment adviser only from charges of breach of fiduciary duty for failing to obtain the lowest available commission rate where the amount of commission is reasonable in relation to the value of brokerage and research services provided. 1986 Soft Dollar Release, 35 SEC Docket at 907.
2 See 1986 Soft Dollar Release, 35 SEC Docket at 909. There is a presumption that receipt of non-research and non-brokerage products or services, except where nominally valued, is a factor in the selection of brokers. 1979 Soft Dollar Release at n.6.
3 The 1986 Soft Dollar Release noted the relevance of Form ADV, Part II, Item 13 to soft dollar disclosure. 35 SEC Docket at 909 n.32.
4 Section 204 of the Advisers Act and Rule 204-1 thereunder require periodic filing and amendment of Forms ADV by investment advisers. Pursuant to Rule 204-1(d), a Form ADV or an amendment thereto is a “report” within the meaning of Section 207.

 

http://www.sec.gov/litigation/admin/ia-1841.htm

 


 

Modified:10/01/1999

 

He is on vacation….

Send him a quick birthday greeting…. aloudell@wdel.com

(This is my present… lol.)

Follow

Get every new post delivered to your Inbox.

Join 135 other followers