Select Asset Management, LLC et al.

On August 1, 2011, the SEC obtained a temporary restraining order, asset freeze, appointment of a Receiver and other emergency relief against Houston investment adviser Select Asset Management LLC, its principal Brian A. Bjork, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, Select Capital Management, LLC, as well as the estate of recently-deceased J. David Salinas and two Salinas business firms, J. David Group of Companies, Inc. and J. David Financial Group, LP (collectively “J. David”).

According to the complaint, from at least 2004 through the present, Bjork offered securities in two fraudulent securities schemes, raising a total of $52 million.  In the first scheme, the SEC alleged that Bjork, alongside business associate Salinas, offered investors corporate and other bonds through J. David, raising approximately $39 million from more than 100 investors.  The SEC alleged that Bjork and Salinas promised investors safe, fixed income from highly-rated corporate and other bonds, but in reality they never acquired the bonds as promised.

In the second scheme, the SEC alleged that Bjork—through Select Asset and its subsidiary Select Capital—offered securities issued by two private funds, raising approximately $13 million from at least 52 investors since August 2007.  The SEC alleged that the two funds—which were controlled by Bjork, Select Asset and Select Capital—commingled investor money, failed to provide promised financial statements, and transferred money to fund-affiliated entities in related-party transactions undisclosed to investors.

For more information about the SEC’s action, you can read Litigation Release No. 22058 (Aug. 2, 2011).

The Court appointed Steven A. Harr as Receiver.  For more information about Receivership, you can visit the Receiver’s website.

http://www.sec.gov/divisions/enforce/claims/selectassetmanagement.htm