U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19956 / January 4, 2007
SEC v. Joseph J. Spiegel, Civil Action No. 1:07CV00008 (RCL) (D.D.C.)
SEC Files Fraud Charges Against Former Hedge Fund Portfolio Manager Joseph J. Spiegel for Engaging in Illegal “Pipe” Trading Scheme
The Securities and Exchange Commission filed securities fraud and related charges today against Joseph J. Spiegel, a former portfolio manager for Spinner Global Technology Fund, Ltd. (“SGTF”), a New York-based hedge fund, in the U.S. District Court for the District of Columbia. Spiegel, without admitting or denying the allegations in the Commission’s complaint, agreed to settle charges that he engaged in an unlawful trading scheme on SGTF’s behalf in violation of the antifraud and registration provisions of the federal securities laws in connection with three “PIPE” (Private Investment in Public Equity) offerings. As detailed below, Spiegel agreed to entry of a final judgment imposing an injunction and a $110,000 civil penalty. He also agreed to the issuance of an administrative order imposing a three-year bar from association with an investment advisor.
The Commission’s complaint alleges, among other things, that:
Spiegel consented to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 5 of the Securities Act of 1933. In addition, the final judgment orders Spiegel to pay a $110,000 civil penalty. Finally, Spiegel consented to the issuance of a Commission order, pursuant to Section 203(f) of the Investment Advisers Act of 1940, barring him from association with an investment adviser with the right to reapply after three years.
The Commission acknowledges the assistance of the Investment Dealers Association of Canada. The Commission previously instituted proceedings against SGTF and Spinner Asset Management, LLC. See Administrative Proceeding No. 33-8763 (December 20, 2006).