SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release No. 2068 / October 21, 2002
File No. 3-10918
In the Matter of Stevin R. Hoover and Hoover Capital Management, Inc.
Administrative Proceedings Instituted Against Stevin R. Hoover and Hoover Capital Management, Inc. Based on Hoover's Felony Conviction
The Securities and Exchange Commission ("Commission") announced on October 21, 2002 that it instituted public administrative proceedings pursuant to Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 against Hoover Capital Management, Inc. ("HCM"), a registered investment adviser located in Kansas City, Missouri, and Stevin R. Hoover, the sole owner of HCM, based on Hoover's criminal conviction in August 2002, in the United States District Court for the District of Massachusetts, for violations of the antifraud provisions of the Advisers Act.
In the Commission's Order Instituting Public Administrative Proceedings ("Order"), the Division of Enforcement alleges that on August 7, 2002, in the case of United States v. Hoover, Crim. A. No. 02-10309 DPW (D. Mass.), Hoover pled guilty to a one-count felony charge of fraudulently misappropriating nearly $200,000 from three HCM clients between 1997 and 1998 in violation of Section 206(2) of the Advisers Act (15 U.S.C. §§ 80b-6(2) and 80b-17). Hoover is scheduled to be sentenced on October 31, 2002.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Hoover and HCM an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest.
For more information see Litigation Release Nos. 17666 (August 8, 2002), 17487 (April 24, 2002), 17284 (December 19, 2001), 17240 (November 19, 2001), 17236 (November 16, 2001) and 16983 (May 2, 2001).