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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18018 / March 6, 2003

SECURITIES AND EXCHANGE COMMISSION v. ALAN BRIAN BOND ET AL., Civil Action No. 99-12092 (S.D.N.Y.)

UNITED STATES V. ALAN BRIAN BOND, Crim. Case Nos. 99-CR1235 and 01-CR1140 (S.D.N.Y.)

INVESTMENT ADVISER ALAN BRIAN BOND SENTENCED

On February 11, 2003, United States District Court Judge Leonard Sand sentenced investment adviser Alan Brian Bond (Bond) to a prison term of 12 years, 7 months and ordered him to pay $6.6 million in restitution, with possible additional restitution, for his role in both a kickback scheme and a trade allocation or "cherry picking" scheme. Bond, Harvard educated and a frequent guest on television talk shows, allegedly used the ill-gotten gains to purchase more than 75 luxury and antique automobiles and a large home and beachfront condominium in Florida. On June 10, 2002, Bond was convicted in the U.S. District Court for the Southern District of New York of six counts of conspiracy, investment advisory fraud and mail fraud. On October 11, 2002, Bond pled guilty to ten counts including conspiracy, investment advisory fraud and filing a false tax return

The Securities and Exchange Commission (Commission) filed a complaint against Bond on December 16, 1999 and alleged that from at least September 1993 through November 1998, Bond, through his former investment advisory firm Bond, Procope Capital Management, Inc., received over $6.9 million in commission kickbacks from three brokerage firms. The kickbacks, which were siphoned off of the investment returns of Bond's clients in the form of mark-ups or mark-downs on principal trades, were used by Bond to finance an opulent personal lifestyle. On August 10, 2001, the Commission filed an amended complaint and added allegations that beginning in March 2000, Bond, using his new investment advisory firm Albriond Capital Management, LLC, participated in an ongoing "cherry picking" scheme in which Bond allocated the majority of profitable trades to himself and the majority of unprofitable trades to three of his advisory clients, causing them to lose millions of dollars.

For additional information, see Litigation Release Nos. 17560 (June 12, 2002), 17266 (Dec. 12, 2001), 17099 (Aug. 10, 2001), and 16394 (Dec. 16, 1999).


 

http://www.sec.gov/litigation/litreleases/lr18018.htm

Modified: 05/14/2003