INVESTMENT ADVISORS ACT OF 1940
Release No. 1995 / November 7, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10526


In the Matter of

JAMES L. BINGE
and ERIC V. BARTOLI


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ORDER MAKING FINDINGS AND
IMPOSING SANCTIONS BY DEFAULT
AGAINST ERIC V. BARTOLI

The Securities and Exchange Commission (Commission) instituted this proceeding, pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 (Exchange Act) and Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act), on June 28, 2001, with an Order Instituting Public Administrative Proceedings (OIP).1

On October 16, 2001, the Division of Enforcement (Division) filed a Motion for Entry of Default Against Respondent Eric V. Bartoli (Motion).2 The Division requests that Bartoli be barred from association with any investment adviser.

Pursuant to 17 C.F.R. §§ 201.155(a) and .220(f), a respondent who fails to answer, respond to a dispositive motion within the time provided, or otherwise defend the proceeding may be deemed to be in default. The administrative law judge may then determine the proceeding against him upon consideration of the record, including the OIP, the allegations of which may be deemed to be true.

Bartoli is in default within the meaning of 17 C.F.R. § 201.155(a). On September 21, 2001, the Division filed a Notice of Service Upon Respondent Eric V. Bartoli, which asserted that a certified mail receipt was received by the Commission's Office of the Secretary, and established that Bartoli received the OIP on September 10, 2001. He failed to answer the allegations in the OIP, respond to the Motion, or otherwise defend the proceeding, including failing to appear at a telephonic prehearing conference held on November 5, 2001. See 17 C.F.R. §§ 201.155(a) and .220(f). Accordingly, I find that the allegations in the OIP are true.

At all relevant times, Bartoli was a director of Cyprus Fund, Inc. (Cyprus Fund), an unregistered foreign investment company. He was also a registered principal and general manager of Latin American Services Co., Ltd. (Latin American Services), a registered investment adviser.

On August 27, 1999, the Commission filed an emergency action in the United States District Court for the Southern District of Florida seeking a temporary restraining order, asset freeze, and appointment of a receiver against Cyprus Fund, Latin American Services, Bartoli, James L. Binge, and other directors of Cyprus Fund. See SEC v. Latin Am. Servs. Co., No. 99-2360-Civ-Davis (S.D. Fla. 1999). In its complaint, the Commission alleged the ongoing fraudulent sale of unregistered securities, specifically Cyprus Fund shares, and the misappropriation of investor funds by principals of Cyprus Fund, including Bartoli.

On September 3, 1999, the district court entered a preliminary injunction against the defendants, including Bartoli, and extended the asset freeze to the conclusion of the case. On September 29, 2000, a Final Judgment of Permanent Injunction and Other Relief was entered against Bartoli, enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933; Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and Sections 206(1) and 206(2) of the Advisers Act.

In view of the foregoing, and pursuant to Section 203(f) of the Advisers Act, it is in the public interest and necessary for the protection of investors that Bartoli be barred from association with any investment adviser.

Accordingly, I GRANT the Division's Motion and ORDER Respondent Eric V. Bartoli barred from association with any investment adviser.

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Robert G. Mahony
Administrative Law Judge


Footnotes

1 Sections 15(b) and 19(h) of the Exchange Act are implicated by the conduct of Respondent James L. Binge.
2 The findings herein are binding solely upon Bartoli, and not on any other respondent in this proceeding.