UNITED STATES OF AMERICA
|In the Matter of
Brian T. Lenihan,
|ORDER MAKING FINDINGS
AND IMPOSING A SANCTION
In connection with a public administrative proceeding instituted against him on March 14, 2000, pursuant to Section 203(f) of the Investment Advisers Act of 1940 (the "Advisers Act"), Brian T. Lenihan ("Lenihan") has submitted an Offer of Settlement ("Offer") to the Securities and Exchange Commission ("Commission") which the Commission has determined to accept. Solely for the purposes of this proceeding and any other proceeding 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 that he admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, and the findings contained in Section II, paragraphs 1, 2, and 4 below, Lenihan consents to the entry of the findings and remedial sanction set forth below.
On the basis of this Order and the Offer submitted by Lenihan, the Commission makes the following findings.
1. Lenihan, an investment adviser, did business under the name "Lenihan Investments," a sole-proprietorship operated from his residence in Fairfield County, Connecticut. Lenihan registered with the Commission as an investment adviser under Section 203 of the Advisers Act on July 12, 1994. Lenihan maintained his status as a registered investment adviser until March 13, 1998, when his registration was withdrawn pursuant to the terms of a Form ADV-W filed with the Commission on January 12, 1998.
2. On July 18, 1999, Lenihan appeared before the Stamford/Norwalk Superior Court in Norwalk, Connecticut, and entered a plea of guilty to: three counts of larceny in the first degree (in violation of Connecticut General Statutes ("CGS") 53a-122); one count of forgery in the third degree (in violation of CGS 53a-140); one count of engaging in a scheme to defraud investment clients (in violation of CGS 36b-4); and one count of failing to make proper disclosures with regard to investment clients (in violation of CGS 36b-5).
3. In pertinent part, the criminal information under which Lenihan was convicted in July 1999 charged that Lenihan stole over $75,000 from four of his advisory clients and that he also forged a client's signature onto a fee authorization form created on Lenihan Investments letterhead that authorized the broker-dealer that maintained Lenihan's client accounts to pay advisory fees to Lenihan from the client's account.
4. On August 31, 1999, Lenihan was sentenced to, among other things, a period of eight years' imprisonment, with the sentence to be suspended after two years, followed by five years of supervised probation; he was also ordered to pay $23,845 in restitution.
5. By virtue of his convictions for larceny and forgery, Lenihan has been convicted of felonies listed under Advisers Act Section 203(e)(2)(C).
6. By virtue of his convictions for engaging in a scheme to defraud investment clients and failing to make proper disclosures with regard to investment clients, Lenihan has been convicted of felonies and/or misdemeanors set forth in Advisers Act Section 203(e)(2)(B).
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Lenihan and to impose the sanction which is set forth in the Offer.
Accordingly, IT IS HEREBY ORDERED that Lenihan is barred from association with any investment adviser.
By the Commission.
Jonathan G. Katz
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