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U.S. Securities and Exchange Commission


Litigation Release No. 16800 / November 15, 2000

Securities and Exchange Commission v. Teresa V. Fernandez (S.D.N.Y.) 96 Civ. 8702 (JES) U.S. District Court, S.D.N.Y.

Court Approves Plan of Distribution of the Claims Fund for Clients of Teresa V. Fernandez and Wharton Investments, Inc.

The court recently approved the plan of distribution proposed by the Commission in the case against Teresa V. Fernandez. In accordance with the plan, the Commission is seeking to identify individuals who lost money at the hands of Teresa V. Fernandez, who acted through Wharton Investments, Inc., a registered investment advisory firm, from approximately 1983 through approximately September 1995.

In 1996, the SEC sued Fernandez for defrauding her advisory clients, most of whom were residents of the Philippines, by misappropriating their funds and/or misrepresenting the status of their investments. As a result of consent judgments entered in the case in 1996 and 1999, there is an account with over $600,000.00 on deposit with the District Court for the Southern District of New York to compensate the victims of Fernandez's fraud (the "Disgorgement Fund").

You may be eligible to receive a portion of the Disgorgement Fund if you:

  • Were an investment advisory client of Fernandez and/or Wharton during some or all of the period beginning October 1983 through September 1995; and

  • You suffered a net out-of-pocket loss on your investments with Fernandez.

If wish to make a claim against the Disgorgement Fund, you should promptly contact Nichola Timmons of the SEC's Northeast Regional Office to obtain a claim form. You may reach Ms. Timmons at 212-748-8245, or by e-mail at TimmonsN@sec.gov. Alternatively, you may contact Allan Kahn at 212-748-8275, or by e-mail at KahnA@sec.gov. Claim forms must be completed and submitted by January 29, 2001.

For further information about the SEC's complaint against Fernandez, see Litigation Release No. 15159 (November 19, 1996).