U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18713 / May 14, 2004
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 May 3, 2004, the Honorable Wiley Y. Daniel of the United States District Court for the District of Colorado granted the Commission's Application for an Order Directing Compliance with an Order of the Securities and Exchange Commission and entered a Judgment against defendants 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. The Commission's Application, filed on August 27, 2003, alleged that Brubaker and ASCI failed to comply with the Commission's Opinion and Order Imposing Remedial Sanctions dated July 31, 2001, which among other things, required Brubaker and ASCI to each pay civil penalties in the amount of $50,000. The Judgment requires Brubaker and ASCI to comply with the Commission's Opinion and Order within 21 days of its entry.
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. For further information, see LR-18316.