Endorsement In Primary For New Castle County Executive

So why even vote?

For one, the county is what controls most of our lives, if you live outside any of the smaller city limits…

Two, you pay them enough in taxes (included in your escrows if paying-off a mortgage). or a painful separate check if the asset is fully yours.

Three. They establish and run almost all the things that impact your daily lives… When it comes down to “gee, how well do we like this place in which we live”, the country has probably 60%, the state 30%, and the Federal government 10% of that decision…

If you don’t believe me simply try living without a sewer for one year… You get tired digging holes in your back yard.  But also add the perks that sprout up, those festivals in our county parks, that farm next door that never was developed into a section 8 housing unit, the police who not only protect us, but let our kids pet their Clydesdales, and you sort of get a general idea of how important our County actually is to us….

So what happens, when county government stops working?  You get everybody fighting for themselves… sort of like New Jersey.  You get no planning. You get results where anything goes. You get increased crime because either one can buy off cops who have no one watching over them, or because they were strictured through lack of funding. You get no perks, unless you want to pay a private citizen your out-of-pocket money to get them… And all the stuff you do have now, starts falling through the cracks out of neglect….

Bottom line: it is very important to have someone running the county who can do it well…

Which thrusts us sometimes into this bizarre choice.  Is it better to have a person more concerned with morals and appearances who always seems to be deep in a moral struggle just to do their basic job?… Or is it better to be stuck with someone always having the whiff of corruption seeming to surround them, but who makes your own personal life SO MUCH BETTER and easier by his abilities and skill to get things done before you even get to worry about them…..?

This bizarre choice is what New Castle County faces this primary season when choosing its Executive. ….. …. …. Your vote will simply depend on which of the above traits YOU think is more important, either it being sanctimonious, or being successful; which YOU prefer to see embedded in your leader….

Delaware Liberal just came out in support of Matt Meyer.  Interestingly that same writer penning that article was also a fervent supporter of Hillary,  even to the point of being quite vicious towards Bernie who was performing a service like Matt, challenging the current leader on their principles, especially when it came to the appearance of impropriety over their past choices between ones constituents and ones cronies and corporate friends.. If we remember correctly, the writer’s response to such criticism boiled down to:  she’s effective, she gets things done, her enemies naturally try to discredit her and having no substance, must use whisper campaigns and false accusations.

It is ironical that this one writer was all Hillary in the national, and is now all Matt in the local because in this race, Tom is the candidate being pilloried more like Hillary, the seasoned politician, whereas Matt as the new interloper gets a “buy” on using morality to launch a challenge…

Because like Hillary, Tom Gorden has had an amazing career.  Granted some is timing. But also granted is that he is feared by this state’s developers, ever since he shocked them with a moratorium on all new development..  He implemented that necessary action which had been a political albatross, so much so that none of his predecessors had been willing to touch it before he arrived.  Whereas you may not agree with the copious amounts of development you have seen being dug lately; the control over what has actually been approved for development, was far more consistent with the opinions of those living in those local neighborhoods during the split terms of Gordon, than what occurred during the interims of those holding the office during the split… Can you say: Barley Mills Plaza?

In what matters to our longterm happiness, Tom Gordon has done a better job.  In that way, he is our Hillary, the workhorse who simply because he chooses to support the majority will of the people over the peculating wills of the elite, has special interests spend inordinate time digging for dirt and constantly slandering him , even haul him in as a criminal.  Yet when actually investigated (Hillary 13 times, Tom 1) , though there may be some impropriety brought to light (on both Hillary and Tom) it is innocent shadiness; nothing near what the accusers tried to paint… In fact, if you notice the shaming in the Delaware Liberal article, the problem they try to paint on Tom is that he was “accused”; little mention that a judge who “actually” saw the “evidence offered”, said it was political bullshit and dropped the case.  There really is no difference here between those “accusing” Hillary, indicting her in public because she was called in to account 13 times… (for no one gets called up 13 times unless they are an actual criminal, right) and those indicting Tom Gordon because of “similar” accusations.  Yet in each of those times, the evidence overwhelmingly showed not only was there no actual wrongdoing, but we glimpsed how great she was at running things.  The real evidence that comes out of each of her “hauling in’s”, is that she is an awesome human being… probably the best we’ll see in our lifetimes… And the same can be said about Tom.

At some point, one has to shut down the accusers… “You have no evidence”.

Matt has a nice resume full of “progressiveness” but is seems short on the executive skills needed to run a metropolitan county.  There is no endorsement by others in his “creds” showing he has experience in leading huge numbers of people, often including among that number, those who are trying to see you fail. In his resume I didn’t see any past acclamations which told us how good he was with dealing over conflict.  How strong will he stand up to the selfish interests of County Council? Whereas his resume tells us what kind of a person he is, it doesn’t tell us what kind of an Executive he will be. So instead of starting a stock exchange, will he insist on using that money to send Payless shoes to Africa?  Point made.

And since Delaware Liberal made a big deal on ethics, one should wisely point out that Matt Meyer’s hit piece last sent out in the mail, uses the same kind of ethics both he and Delaware Liberal try to pretend he is above…

His photo has a bright picture with school kids; Tom’s is grainy yellow darkened to show all the weathered lines on his face… Is that on the up and up?  Playing with what you are given, putting out something that is Foxnewsworthy?

Highlighting “Pleading guilty to two criminal charges” without mentioning they were minor misdemeanors, the felonious charges were dropped because they were politically crafted. Is that completely honest?  Most of us plead guilty to criminal charges every time we mail in a check for a speeding ticket.

“He was elected in 1996. Since then, many of our largest corporations have downsized or left the state: GM, Chrysler, MBNA, Avon, Astra Zeneca and Dupont?” Oh, you went there? Lets refresh the record on those companies.  Both GM and Chrysler were bailed out by the Feds.  Did Gordon have anything to do with that?  MBNA was bought out by Bank or America… Did Gordon have anything to do with that?  Avon consolidated elsewhere due to a huge national sales drop, could Gordon have bought all its makeup and applied it to his grainy yellow weathered face (see above) just to keep them in business? Astra Zeneca, again bought out. Dupont split for liability reasons…  None of these are Gordon’s Fault. So what is Matt trying to accomplish by making it look so? Make himself look immature and amateurish?  In fact, it was Chris Coons and Paul Clark who were in the office when most of those took place…right?

So is Matt Meyer being fair here?  In all truth, this was written probably by his hired consultant, who tells everyone “I’m his consultant; I’m running his campaign” but in reality just creates and mails those things you get in your mailbox, and Matt Meyer’s consultant’s literature is no different from Tony Deluca’s, Tom Sharp’s, or those creeps’ who attack John Kowalko every two years.

Bottom line, Tom had nothing to do with those business switches and losses.  and starting in 1996 covers a lot of time, 20 years. Twenty years that between being up or down, things have been pretty good in New Castle County compared to anywhere else near or far.

Matt’s flyer says we gave him a second chance and got more crime and decreased job opportunities.   Has crime increased?  There is less in my neighborhood than was during Paul Clarks’s span, so naturally I had to look it up to see….

(Just in case some of Matt’s supporters can’t see too well)………..

Perhaps they mistakenly add Wilmington to the mix but really, is that fair to add Wilmington to New Castle County when the current executive has no police-fire-or ambulance jurisdiction within Wilmington’s city limits?

Within the county, crime has dropped 16.4% since we gave Gordon a second term.. I’ve seen its results with my own eyes….

There also was much ballyhoo made in Delaware Liberal’s comments about the drop in reserves… In your own personal life, if a tree falls in your back yard and you have money in savings to cover its removal, … do you keep that money in savings, and leave the tree to rot?

That is what those who bring up this ridiculous charge are advocating…  we had needs, we had reserves, we used them…

They say” OH NO!  YOU USED THE RESERVES! YOU ARE AN INCOMPETENT IDIOT “. Collectively the entire populace of New Castle County should respond in kind by giving the only person we have ever had who has actually increase our reserves, another opportunity to do it again… In that quiet way, we will all have the last laugh and say….”no, it looks like you are the idiot….”

 

Wilmington Must Learn From Ferguson’s Mistakes

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.

Democrat Treasures Debate Tonight on WDEL 6-7

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

 

---

 

Home | Previous Page

Modified:10/01/1999

 

The Star Spangled Bigots…..

(Sung to the tune of the National Anthem…..)

 

Oh, say, can you see?

By the pale florescent light.

What once was so proudly was hailed,

As the reason for Sussex’s being…..

 

Whose broad girths and wide ties.

Led Conservative battles galore…

Illegal prayers and  hot sexed lies….

Made them more desire… a Conservator…..

 

As county sheriffs, with posse’s in arms…..

Or as popes whose morals were in great harm….

They kept the brown skinned down,

So only those who were white… could farm….

 

Oh say, doth… those… fallen… bigots,

From last century in rural Sussex’s Way……..

Represent the best, that Sussex can ever be-eee?

Or like the Georgetown hatchet?  Should be buried after election day……..

 

 

 

 

.

 

Oddly Parallel?

I was talking to someone who was in favor of Common Core, and yet a vehemently against a power plant going up in her back yard. I was able to show them that both processes were similar, and that she was at different points of the curve on the two separate topics, but they were both curves that were parallel and would end the same……

I got this great idea off of Norquist and pulled out a napkin where we were eating…….

The x axis stands for truth… as in what we know about a topic goes from zero to infinity, and the y axis represents our feelings of favorability towards the project as we learn more…..

As you can see,  when someone says… “a data center” we have no opinion at first…  We are at (0,0)  As we learn of jobs,  taking up a brownfield spot,  helping out the university by educating engineers,  putting topmost technology into our home, Newark Delaware, as well as selling power to the grid, our favorability towards it rises….  Yeah we could use all those things.

But then as we learn more, our favorability sours.   WHAT!  248 MEGAWATTS!!!!!  Excessive pollution.  Dangerous pollution,  for 75 years, very loud noise.  Huge cancer signatures around gas turbines. poisoning water, digging new gas lines through wildlife areas from Hockessin. A 24/7 operation.  The TDC was to sell the power plant, not the power plant being there for the TDC.  We sour. Something else, almost anything else could still give us the positives, without the negatives.   All those negatives were hidden and still would be, if citizens hadn’t ferreted them out.  There was never any plan to mention them if at all, until absolutely necessary…..

We lose favorability based on how much we know…  So those still supporting it, even Al Mascitti (unless he changes his mind while on vacation), aren’t more stupid than the rest of us… in fact, they are exactly like us, back when we were at that same point on the learning curve… Instead of bemoaning that TDC supporters are jack-stupid, educate them…  Then, after they’ve been educated, if they didn’t change their mind, it was not because they are jack-stupid.  It’s because they are sinister.  But really, when it comes to dying, very few people are really sinister. It’s really all about knowledge…..

This is exactly the same with Common Core!… This person with whom I was in this discussion,  is a member of the Delaware Chamber of Commerce and she was at the milktoast breakfast thrown at the Hotel Dupont where the Grand Poobah of the national Chamber of Commerce came in to elevate support for Common Core.  One assumes the Grand Poobah would know what he is talking about… Alas, he is a common man. He is no expert.   Because really, very few people there are privy to the facts.  You readers happen to be  far more privy to what Common Core is really about, because you have seen it here, with your very eyes, and are certainly quite capable to make up your mind yourselves…

I assured my friend, that when I knew as little about Common Core as she did, I too believed in it. Of course it makes sense to have standards the same across the country.  Of course it makes sense to raise the bar so students can’t loaf as much as they do now I thought… Of course it makes sense that if we don’t teach our children well, then the jobs will go to those nations which do teach their children well.  Of course it makes sense to pay those teachers who do well more, and to weed out those who’s real calling is obviously not teaching…   of course it makes sense to train teachers better, instead of throwing them into a classroom and saying:  Good luck, here you go…

But none of those are true I found out as I learned more… I learned that poverty is what makes students not perform well, otherwise we are all born equal… I learned that if you give someone a harder test who is relatively impoverished, they will flunk it worse than they flunked an easier test their society wouldn’t provide the necessary safety net to  enable them to study.  I learned that Common Core was all about money and politics.  I learned that Common Core was the brainchild of a mad scientist, David Coleman. Not a group of top educators.  I learned that Common Core actually shut out teachers, and was made with one goal: to make more money. When teachers objected, they were summarily dismissed.  I learned that it was getting rid of Shakespeare, and subbing in text on how to install a ceiling fan.  I learned that students in all of Delaware’s pilot programs were tuning out of Common Core subjects, saying they learned that stuff 5 years earlier.   I learned from inside the DOE that in the Common Core pilot classes of 2013, every pilot class had depressed scores.  I learned that this administration, co-oped the favor of the teacher’s union, whose leadership jumped in with both feet, and now the rank and file who see Common Core up close, have said loud and clear, they have no confidence in this administration’s roll out..  I learned that grown up professional adults, most of America’s leadership, could not pass a third grade math test.  IT is that hard!…  I learned that though the test is impossibly hard, but the standards will not even include 8th grade algebra, or trigonometry, or geometry, or pre-calculus, or calculus, all of which are offered now.  I learned the meat of Common Core is a crock of shit. Basically.

My friend is looking at me now with a dumb-ass deer expression…  sort of like… “Gee, I’m a dumb-ass deer…. I wonder what I should do now….”

“But, but, but, none of that can be true,”  she blurted out.. ” I was at the meeting with the Grand Poobah..  None of this stuff was mentioned. Common Core is our future… It is good, It is necessary for this nation……”

All I simply said was this:  “And on the power plant they didn’t tell you about the carcinogenic radon and sulfuric acid that would be dropping on your lawns, pets and cars, or the horrendous noise that never stops, or the amount of cancer rares that go up because of a power plant in your back yard, did they?…  And… when did you find out how big the 248 MW power plant really was?  That didn’t grow on you, you know… That was planned from day one… And…You only found out because other people told you.  Just like with Common Core, you need to see what other people are saying about it instead of taking the official side, and then make up your own mind…”

“I need to learn more about Common Core”, she said….

And if you dear reader still think Common Core is all good, then so do you……

=====

As an after thought, it struck me how this pattern has played out rather often since Markell’s second term began…..   Kinder-Morgan, Common Core, Delaware City expansion, Coastal Zone eradication, Charter School expansion.   Always a very dark undercurrent that only benefits the top 1% at the expense of 99% of the rest of us… It is sugar coated, given the Editorial Board approval, rushed in secret through the GA, where any dissent is squashed by Pete Schwartzkoph and Valerie Longhurst, and the signature gets applied, and commemorative pens are then handed out….   And it bears mentioning that in the first term there was also Fisker…. and Bloom… How much are we paying for Bloom right now with each electric bill?  How much did we pay for Fisker?

Well if you still think Common Core is good… do some reading…   If you don’t do your reading, (and who has time) you should not give it your support, but instead, … say you prefer the current system until you have time to find out more….  Because as the graphs above show, if you state your opinion too early… as you continue to hear more and  learn, you will be forced to change your mind…….

 

 

 

 

 

State Of Delaware Gets Front Paged On Kos

If Christie laughed at every time he was lampooned, he’d lose weight.

The Lynching of Senator Katz

A 501 support group, sponsoring the the elimination of the electoral college, publicly derided Senator Katz for his not voting yes to remove the Electoral College. It was in Market Watch on Thursday, and the News Journal on Sunday.

The reason Senator Katz did not vote for pushing forward with the popular vote bill, is that he thinks it is wrong.

And I agree with him.

Everyone hates the electoral college at some point in their life, yet it has weathered over 700 Constitutional Amendments to get rid of it.

The NPV ( National Popular Vote) compact, is a method to get around this problem without changing the constitution….

Is this Constitutional? Will it muster court challenges? The Constitution gives states the method of determining how their electoral votes are cast. Bypassing that process without an amendment, should, be deemed unconstitutional…. After all you are changing years of Constitutional practice, without, even a legislative vote….

Furthermore, states not part of the Compact, would then be excluded from the electoral process. The decision on who would be president would be made only by those states who’d signed the compact.

The electoral college, was originally enacted, because not everyone trusted the country bumpkins with the powers of voting. Hell, you could buy a vote with moonshine… Enough moonshine, a crook gets into government… The electoral college prevented that. (There is nothing in the original Constitution that says Electoral delegates even have to vote the same way as did their state’s constituents.

And most importantly, the Electoral College protects the rights of states.

For example roughly 390,000 Delawareans voted in 2008, our last presidential election. Delaware has 3 electoral votes. As most of the readers here know, 390,000 is .001 of our nation’s population. In percent, Delaware voters make up .1% of the population. In a tight election, those 3 votes have some meaning. Mathematically, we have .5% influence in the electoral college. That is five times more clout, as the spinners would say…

Lastly, the electoral college provides clarity. We have had close elections before. In fact, the Bush/Gore race is one of recent memory, and probably the reason we are debating it now. The electoral college provides a clear line of who won. We have to have that. We all lived through a pretender in the White House for 8 years. But there was a system that we could follow, and say by the rules enacted, George Bush should be president….

Now imaging if we had an election that was only 10,000 votes off? How would you decide if the underdog challenged that figure, where those 10,000 votes were? There are votes misplaced in every election, even in Delaware. Mistakes get made (Paradee/Thornberg come to mind)… How can you go through an entire country’s voting system, and make sure every vote is legitimate?

At least with the electoral college, you have decisiveness.

Katz is right for not allowing this compact to go forward. It is ill thought, and has never been tested.

The electoral college is the rule by which we’ve always played.. If you’re going to change the rules, why not change football, why not change baseball, why not change hockey? Let’s just change the rules when our team doesn’t win…

Exactly.. Losers always hate the electoral college, especially if they won the popular vote. Winners never see a problem with it…

It is, what it is… Katz should be commended. Tom D’Amore, Co-Chairman of Support Popular Vote should be ridiculed and humiliated, and perhaps tried for treason.

Friday, May 25th: Last Day to Change Party Affiliation

Republicans.. you have today and tomorrow to get yourselves out of that ridiculous party of yours, that wastes your vote every time you poll, and come over to the democratic side, where you, you get the chance to determine your representative, not just vote up or down on that representative once he’s been chosen.

Likewise, Independents. You signed up as an Independent because you thought it more patriotic to be the judge, than jury. You didn’t know that party rules would force out your opinion, except on just one day of the year.

You probably envisioned that one day, a different party, the Independent Party, or Libertarian Party, or Constitutional Party, would rise up and you’d be at the forefront leading the way.

It hasn’t happened. You have little over 24 hours to get real in time for this years primary….

Remember. This is not about who your are. You are not a typical Democrat because you signed up to vote in a Democratic Primary. You are still you, the same you who signed up for one of the other two categories…

The only difference is that now, you actually have a voice in determining who will be your local representative. It’s the only way to go when you are in the minority. You play on the level where you can make a difference.

So in a state, that is 95% Democratic, (ignore the official figures; just not all Democrats vote).. you have to impact that choice, if you want government to represent you…

Remember values are great to talk about. They do dick in the real world. Power is something we don’t talk about. But power, is the only thing that will do real dick in the real world.

Without power, you are a bubble swept along with the current. It is time you realized that, and start working on changing the current…

All you registered as third party out there; whether Libertarians, Institutionalists, Republicans, or other. You have very little time left. Change that affiliation before you time passes and you regret you didn’t.

Delaware Liberal and the Progressive Meltdown

Today the jobs bill got sent to the House.

Obama wants taxes on the wealthy, He wants increased taxes on corporate profits to help pay for his jobs bill…

As one reads the bill, one remembers that these same ideas, these same concepts were in last November’s finance bills, which passed the House, and got stalled in the Senate…..
One remembers these same ideas, these same concepts, were in the $4 Trillion Deficit Reduction Act, and all parties were excited that finally something good was coming out of Congress, ….. that is until the Eric Cantor contingent stormed out of the meetings because of higher taxes, and the votes fell short…

Metaphorically speaking it is like Obama (truth) keeps running into a brick wall(stupidity)… and we, keep blaming Obama for not being tough enough….

We should be focused on tearing down that wall…..

‘Tear Down that Wall, Delaware Liberal, Tear Down that Wall..”

Instead, in our frustration (exactly what it is) we blame the very one person on the attack….. ????

I remember a story told here once before, of a charge across “no man’s land” in WWI, where everyone was mowed down except one lucky person… as he stormed the trench, he looked around and noticed he was the only one facing a trench full of weaponry. In disgust, the threw down his weapon and walked away back to his own lines… In the strange code of soldiers honor, no one fired a shot…..

The wall has never been weaker. It is time to chip away at the Republican base, just like we did in 2006… We have facts.. they have Eric Cantor extolling them to remain firm… Our way gets America back on its feet; their way lets them keep their extra 5%. It would be wise to remember, that even Hitler had his dedicated youth during the last days… They have their Young Republicans… blindly following directives that make little if any sense.

Everyone needs to call them on it…

Now is the time to pull out every chart showing that Republicans ruin everything they put their hands on.. Whether it be the United States, the State of Delaware, or Sussex and Kent Counties… Republicans do no good at all..

Which is why they are so well funded….

If you were doing something obscenely illegal, wouldn’t you be paying off the law as well?

So look into yourselves and decide whether you want to be part of the problem… or solution…

The solution is to turn Republicans into a joke. And to do it publicly… The battle is independent voters. And they get hit with shit from both sides… Our shit, simply has to smell a little better….

Focusing on our frustration, only strengthens the other side; that other side which created the deficit, destroyed the global economy, lost 1 out of 10 American jobs, cost you 30% more in insurance premiums, Increased your gas prices 3 times, cost you 60% more for your electrical power, raised the cost of your prescriptions 450%….

Start tearing down the wall………………….

Religion Grows In Sussex County; It’s Just Not the Religion Our Backwood’s Preachers Envisioned

The story goes that Warren Buffet, rather worried about his investments early 2008, wanted to talk to God… God told him to use his phone and he’d send him the bill… He got and paid the $333 million dollar charge. His investments flourished, too… That would be the end of the story, except he was down in Sussex County recently, following up first hand on a corporate case being processed out of Georgetown… once again, he asked God for the right to call, and agreed to accept the charges… When he got his bill, he was fuming… He was only charged 25 cents… “God”, he said, “you ripped me off on that first call, big time!”… God said, “Warren, don’t you get it? In Sussex County, that’s a local call…”

Local call or not, Sussex County is weighing in on whether to say a prayer before County meetings or to not… Here are a few takes on that policy: one, two, three, four……

As someone who grew up where prayers were always said before football games and county meetings, it isn’t a big deal…… That is, as long as everyone agrees it isn’t a big deal. You don’t see prayers before meetings conducted in New York.

Not because New Yorkers are heathens, but because in New York, you have a multiplicity of religions, so praying a prayer from one of them, is a slap in the face for all others…

Why it’s even an issue in Sussex County is because the Positive Growth Alliance, has been building condo’s like ants, and lots of people who did not grow up in Sussex County, now live there. Many have different ideas of religion than those who’ve always been there all their lives…

If everyone believe in the same version of God as does David Anderson, then of course, duh, why are we even arguing about it… Of course we’re going to pray to God to guide us through this meeting.. That’s what He’s for!

Suddenly, thanks to Rich Collins and the Positive Growth Alliance, we have tons of people who do object to having David Anderson’s version of God, one who dislikes Homosexuals, and one who casts pox on Democrats, one who believes married people should have sex only when they have children, one who believes sex between animals is immoral, one who believes taxes are caused by the devil, one who believes that nature was made to bulldoze and pave with a combination of petroleum and gravel. … one who believes that oil companies have the divine right to pollute oceans, one who believes that animals were made for us to kill. … one who believes a national religious holiday should fall on the first day of deer season.. one who believes pick up trucks and baseball caps are proof that homosexuality is a sin,… on who believes killing someone with a gun is not a sin, but taking that gun away for the safety of others is…

(yes, I’m having fun and talking tongue in cheek)…

The point I’m making is that Sussex County is changing; and it is changing mostly thanks to Rich Collins and the Positive Growth Alliance.

Can you make new citizens join the current religion? If so, then by all means, just like the days of old, they will see no qualms in having a tiny prayer before the meeting.

But if they don’t want to join that religion, then, to force one group of religious people to impose their prayers on others, is not American…In fact, it’s kinda creepy…

If in an effort to show fairness, the Sussex County decided they would do prayers from all religions in alphabetical order, when they came to “B” and hit Buddahism, giving an Buddahist prayer before the session, most of those in the audience would be saying WTF! This is our nation, why do we have to listen to such crap…

Which is… exactly what those Buddahists think, who have opened a business in Millsboro, and have come before the county to ask for a variance on something or other that is in their antiqued code….

So… If it is unnatural for a Baptist to suffer a Buddahist prayer, it is equally unnatural for a Buddahist to sit through a Baptist prayer…

It’s not about one religion being right and the other wrong. It’s about who the citizens are that make up Sussex County. If you want to blame anyone over this controversy, the blame solely lies with those who built up Sussex County and brought in all these new people to begin with… Now that they are here, we have to make Sussex County as fair to them as New York, is fair to us, when we take our business up there……

Positive Growth, huh? Depends on your version of positive I guess………….