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U.S. Securities and Exchange Commission


Litigation Release No. 17890 / December 11, 2002


Securities and Exchange Commission v. Anthony Burges and Burges Asset Management, Inc., Civil Action No. 02 Civ. 1284 (S.D.N.Y.)(VM)

The Securities and Exchange Commission announced today that on December 2, 2002, the Honorable Victor Marrero, United States District Judge, entered a final judgment against defendants Anthony Burges and Burges Asset Management, Inc. ("Burges Asset") ordering, among other things, that defendants pay approximately $265,000 in disgorgement and $60,000 in civil penalties. The judgment - which permanently enjoins defendants from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder - was entered by default, the defendants having failed to respond to the Commission's complaint.

The Commission's complaint, filed on February 19, 2002 in U.S. District Court for the Southern District of New York, alleged that Burges and Burges Asset sold interests in two limited partnerships, Burges Capital Partners, L.P. and Burges Investment Partners, L.P. ("the Burges Funds"). Specifically, the complaint alleged that from at least March 2001 until at least June 2001, Burges raised money for the Burges Funds by means of material misrepresentations and omissions about the use of proceeds and their past performance. Burges represented that the Burges Funds would invest and trade in foreign currency, such as Euro and Yen. He also induced investors to invest in the Burges Funds by telling them that he had been very successful investing in foreign currency in the past. Contrary to these representations, Burges never invested the assets of the Burges Funds in foreign currency but rather misappropriated investor funds.

In its application for default judgment, the Commission noted that it had identified at least fifty investors from whom Burges fraudulently obtained a total of $266,126 and had obtained evidence showing that Burges spent investors' money on hotels, meals, clothes, and other personal amenities, among other things.

The final judgment permanently enjoins Burges and Burges Asset from, directly or indirectly, violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder. In addition, the judgment orders Burges and Burges Asset, jointly and severally, to disgorge a total of $284,322.50, representing their ill-gotten gains of $266,126, plus interest, and orders them to pay a civil penalty of $60,000.

See also: Litigation Release No. 17367 (February 20, 2002)



Modified: 12/12/2002