Eugene B. Deveney

INVESTMENT ADVISERS ACT OF 1940
Release No. 2015 / February 22, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10709

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be instituted against Eugene B. Deveney ("Deveney") pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act").

II.

In anticipation of the institution of this administrative proceeding, Deveney has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained in this order, except as to Paragraphs III.A., B. and E. below, which Deveney admits, Deveney consents to the issuance of this Order Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order").

Accordingly, IT IS ORDERED that an administrative proceeding pursuant to Section 203(f) of the Advisers Act be and hereby is instituted against Deveney.

III.

On the basis of this Order and the Offer, the Commission finds that¹:

A. Beginning in or about November 1991, Tandem Management Inc. ("Tandem") was a registered investment adviser located in New York, New York.

B. Deveney was Managing Director and Portfolio Manager, and prior to mid-1993, Deveney was a one-third co-owner of Tandem; he owned 50% of Tandem from that time until October 2, 1995, when his association with Tandem ended. Deveney also served as a general partner of a limited partnership managed by Tandem.

C. On October 2, 1995, the Commission filed a Complaint against Deveney and others in the United States District Court for the Southern District of New York alleging violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Sections 204, 206 (1), 206 (2), and 206 (4) of the Advisers Act, and Rules 204-2, 206(4)-1, and 206(4)-4 thereunder. SEC v. Tandem Management Inc., William F. Branston, Eugene B. Deveney, and Peter S. Alsop, 95 Civ. 8411 (S.D.N.Y.) (JGK). Among other things, the Complaint alleged that:

1. Deveney violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder (i) in connection with certain soft dollar arrangements with broker-dealers by submitting invoices for reimbursement multiple times, altering invoices which were then submitted for reimbursement multiple times; (ii) by misrepresenting Tandem's practices with regard to direction of brokerage, and omitting to disclose material information concerning these practices, to advisory clients, including purchasers of limited partnership interests; and (iii) by including false and misleading information in certain of Tandem's marketing material.

2. Deveney violated Sections 206(1) and 206(2) of the Advisers Act (i) in connection with certain soft dollar arrangements with broker-dealers by submitting invoices for reimbursement multiple times, altering invoices which were then submitted for reimbursement multiple times, and (ii) by including false and misleading information in certain of Tandem's marketing material.

3. Deveney violated Section 206(4) of the Advisers Act, and Rules 206(4)-1 and 206(4)-4 thereunder by (1) including false and misleading information in Tandem's performance advertising, and (2) failing to disclose to clients that Tandem's financial condition threatened its ability to perform its obligations.

4. Deveney violated Section 204 of the Advisers Act, and Rule 204-2 thereunder by failing to make and/or maintain certain books and records required by law.

D. On October 11, 1995, Deveney was preliminarily enjoined, on consent, by the United States District Court for the Southern District of New York, from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and 10b-5 thereunder, and Sections 204, 206(1), 206(2), and 206(4) of the Advisers Act, and Rules 204-2, 206(4)-1, and 206(4)-4 thereunder.

E. On February 8, 2002, Deveney was permanently enjoined, on consent, by the United States District Court for the Southern District of New York, from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 204, 206 (1), 206(2), and 206(4) of the Advisers Act, and Rules 204-2, 206(4)-1, and 206(4)-4 thereunder. SEC v. Tandem Management Inc., William F. Branston, Eugene B. Deveney, and Peter S. Alsop, 95 Civ. 8411 (S.D.N.Y) (JGK).

IV.

Based upon the foregoing, it is in the public interest to impose the sanctions specified in the Offer. Accordingly,

IT IS HEREBY ORDERED, effective immediately, that Deveney be, and hereby is, barred from association with any investment adviser.

By the Commission.

Jonathan G. Katz
Secretary

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