U.S. Securities and Exchange Commission
Litigation Release No. 17428 / March 21, 2002
Securities and Exchange Commission v. James Oh, Civil Action No. CV 02361 HU (Oregon)
SEC Charges Former Portfolio Manager with Fraud
The Securities and Exchange Commission today sued a portfolio manager who was formerly associated with two Oregon investment adviser firms for defrauding his clients out of $500,000.
James Oh, age 35, of Springfield, Illinois, was charged with securities fraud and investment adviser fraud for misappropriating client funds while he was a portfolio manager at Cascade Asset Management Co., in Portland, Oregon, and IMS Capital Management Inc., in Clackamas, Oregon, from April 1999 to June 2000.
According to the complaint, filed today in United States District Court in Portland, Oregon, Oh falsely told clients about purported investment opportunities and then deposited the client funds into his personal bank accounts and used those funds for personal expenses. Oh used clients' funds to pay personal expenses such as mortgage and bank loan payments, credit card bills, golf club fees and dues, lease payments for three cars, wine, furniture, jewelry, and clothes.
Oh has agreed to be barred from any future association with an investment adviser. In addition, Oh, without admitting or denying the allegations of the Complaint, consented to the entry of a Final Judgment permanently enjoining him from violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Advisers Act. Oh also consented to an order requiring him to pay disgorgement in the amount of $500,000, plus prejudgment interest, but waiving payment of disgorgement and prejudgment interest and not assessing civil penalties, based upon his sworn representations in his statement of financial condition.
The Commission wishes to thank the State of Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities and the State of Washington Department of Financial Institutions, Securities Division for their assistance in this matter.