The Securities and Exchange Commission announced that on July 27, 2004, the Honorable Colleen Kollar-Kotelly, United States District Court Judge for the District of Columbia, entered final judgments permanently enjoining Steven and Susan Bolla from violations of certain provisions of the federal securities laws, and requiring Steven Bolla to pay $175,000. Steven Bolla was formerly managing director of Washington Investment Network, Inc. ("WIN"). Susan Bolla was a nominal owner of the firm. Steven and Susan Bolla consented to the entries of these judgments.
Filed on July 31, 2002, the SEC's complaint alleges that Steven Bolla and WIN violated a June 2000 SEC order barring Steven Bolla from associating with any investment adviser. See Litigation Release No. 17642. The complaint alleges that Steven Bolla managed WIN's finances and dealt with WIN clients for ten months after he was barred. The SEC charged Susan Bolla with aiding and abetting WIN's violations of the SEC's bar order. The complaint alleges that Susan Bolla, who had no previous investment advisory or other securities experience, was set up as the nominal co-owner of WIN to conceal her husband's association with the firm.
The complaint charges that Steven and Susan Bolla aided and abetted WIN's investment adviser fraud by failing to disclose Steven Bolla's bar, or any other aspect of his disciplinary history, to WIN clients while Steven Bolla was associating with the firm subsequent to his bar.
In addition, the complaint alleges that Steven Bolla committed fraud by making material misrepresentations to one of his advisory clients regarding a private placement investment he was soliciting as an unregistered broker-dealer.
As part of the settlement, Steven Bolla agreed to the SEC's imposition of an order barring him from associating with any broker, dealer or investment adviser. Susan Bolla agreed to the SEC's imposition of an order barring her from associating with any investment adviser.
Steven Bolla is currently serving a 12 month prison term in a federal penitentiary for making false statements to the SEC in 1999 and 2000. See Litigation Release No. 17707.
The final judgment as to Steven Bolla enjoins him from violating Section 15(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act"), and orders him to pay $117,500 in disgorgement and prejudgment interest and a $57,500 penalty. In a prior SEC action, Steven Bolla was enjoined in June 2000 from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Sections 206(1) and (2) of the Advisers Act in. The final judgment as to Susan Bolla enjoins her from violating Sections 203(f), 206(1) and 206(2) of the Advisers Act.