U.S. SECURITIES & EXCHANGE COMMISSION
Litigation Release No. 18316 / August 28, 2003
Securities and Exchange Commission v. Brett G. Brubaker and Abraham & Sons Capital, Inc., Civil Action No. 03-D-1637 (PAC), United States District Court of the District of Colorado (filed August 27, 2003)
The Securities and Exchange Commission announced that on August 27, 2003, it filed an Application for an Order Directing Compliance With an Order of the Securities and Exchange Commission in the United States District Court for the District of Colorado. The defendants in this action are Brett G. Brubaker ("Brubaker") of Texas Creek, Colorado, a former registered representative, and Abraham & Sons Capital, Inc. ("ASCI"), a former registered investment adviser that was located in Illinois. In its July 31, 2001, Opinion and Order Imposing Remedial Sanctions, the Commission found, among other things, that Brubaker and ASCI defrauded their hedge fund clients by materially overstating the hedge fund's performance and the value of each client's interest in the hedge fund. The Commission's Application alleges that the defendants, Brubaker and ASCI, failed to comply with the terms of the Commission's July 31, 2001 Opinion and Order, which, among other things, required that Brubaker and ASCI each pay a $50,000 civil penalty. In this action, the Commission seeks a federal district court order requiring Brubaker and ASCI to comply with the Commission's Order.