UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 50772 / December 1, 2004
Investment Advisers Act of 1940
Release No. 2331 / December 1, 2004
Admin. Proc. File No. 3-11762
IN THE MATTER OF SCHIELD MANAGEMENT COMPANY AND MARSHALL L. SCHIELD
The Commission announced that it has instituted public administrative proceedings against Schield Management Company, an investment adviser registered with the Commission, and its president Marshall L. Schield seeking remedial sanctions.
The Division of Enforcement ("Division") alleges that Schield Management Company and Marshall L. Schield were the subjects of permanent injunctions entered by consent enjoining them from future violations of Section 204 of the Investment Advisers Act of 1940 ("Advisers Act") and Rule 204-2 thereunder. The injunctions were entered in the civil action entitled Securities and Exchange Commission v. Schield Management Company and Marshall L. Schield, Civil Action Number 03-B-1332, in the United States District Court for the District of Colorado.
The Commission's complaint in the civil action alleged that Schield Management Company, at the direction of Marshall L. Schield, destroyed and altered documents it was required to produce during the course of a statutorily authorized Commission examination of Schield Management Company. Specifically, Marshall L. Schield directed Schield Management personnel to destroy e-mails, tamper with logs reflecting losses suffered by clients due to trading errors, and destroy Personal Identification Numbers (PINs) used in trading.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order Instituting Administrative Proceedings are true, to provide Schield Management Company and Marshall L. Schield an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest. The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.
See also the Order in this matter