Joseph D. Stilwell

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23067 / August 14, 2014

Securities and Exchange Commission v. Joseph D. Stilwell, Civil Action No. 14-misc-257 (S.D.N.Y.)

SEC Files Subpoena Enforcement Action Against Joseph D. Stilwell for Failure to Appear for Testimony in Investigation of Stilwell Value, LLC

The Securities and Exchange Commission announced today that it filed an application on August 13, 2014 in the United States District Court for the Southern District of New York for an order to enforce an investigative subpoena seeking Joseph D. Stilwell's ("Stilwell") testimony. On the same day, the District Court ordered Stilwell to show cause why he should not comply with the Commission's subpoena and scheduled a hearing on the Commission's application for September 9, 2014.

Stilwell is the principal owner and managing member of Stilwell Value, LLC ("Stilwell Value"), an investment adviser to a series of pooled-investment funds (the "Stilwell Funds"). Stilwell Value is registered with the Commission and is based in New York, New York.

The Commission's application and supporting papers allege that on November 27, 2012, the Commission issued a Formal Order Directing Private Investigation entitled In the Matter of Stilwell Value, LLC. According to the Commission's application, Stilwell has failed to comply with a validly issued and served subpoena for his testimony relating to this investigation. The Commission is investigating, among others things, whether Stilwell, Stilwell Value, and possibly others violated the anti-fraud or other provisions of the federal securities laws in connection with certain inter-fund loans at the Stilwell Funds. The investigation relates, in part, to whether Stilwell and Stilwell Value accurately disclosed the existence and true terms of, as well as the potential conflicts of interested created by, those inter-fund loans.

The Commission is continuing to conduct its fact-finding inquiry and has not concluded that anyone has violated the securities laws.

See also: Order to Show Cause; Application and Memorandum