U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20120A / May 23, 2007
Securities and Exchange Commission v. Bradford C. Bleidt, et al., Civil Action No. 04-12415-NG (D. Mass.)
Court Enters Final Judgment Against Former Boston Money Manager Bradford Bleidt and His Investment Advisory Firm
The Securities and Exchange Commission announced that, on May 8, 2007, U. S. District Judge Nancy Gertner entered final judgments against Bradford C. Bleidt and his investment advisory firm Allocation Plus Asset Management Co., Inc. (AAllocation Plus") concerning, among other things, their misappropriation of millions of dollars in advisory client funds. The final judgments enjoin Bleidt and Allocation Plus from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act and order them to pay, jointly and severally, disgorgement of $31,734,192.75 plus prejudgment interest of $9,497,553.30. Bleidt and Allocation Plus consented to the entry of the judgments without admitting or denying the allegations of the Commission's complaint.
The Commission's action, which was filed on November 12, 2004, was based on its complaint alleging that Bleidt had admitted to stealing tens of millions of dollars from clients over a period of 20 years in a taped confession delivered to the Commission's Boston office. In its Complaint, the Commission alleged that Bleidt confessed that he diverted client funds into a bank account that he controlled. Bleidt stated in his taped confession that the "day of reckoning" came when he no longer had enough funds to cover a client's request for a withdrawal. "The money's gone. I stole it," Bleidt said in the recording, according to the Complaint.
Previously, on November 12, 2004, the Commission sought and obtained an emergency asset freeze and temporary restraining order against Bleidt and Allocation Plus. On December 2, 2004, the Court entered preliminary injunctions against Bleidt and Allocation Plus extending the asset freeze. On November 18, 2004, the Court appointed Boston attorney David A. Vicinanzo as receiver to preserve the assets of the defendants, including a radio station and other entities owned or controlled by Bleidt.
On December 5, 2005, Bleidt was sentenced to 11 years and three months in prison and ordered to pay restitution of $31,734,192.75 based upon his guilty plea to parallel criminal charges brought by the United States Attorney's Office for the District of Massachusetts.