U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18865 / September 2, 2004
Securities and Exchange Commission v. Schield Management Company and Marshall L. Schield, Civil Action No. 03-B-1332 (Dist. of Colo.)
The Commission announced that on August 26, 2004, the United States District Court for the District of Colorado entered a Final Judgment against Schield Management Company and Marshall L. Schield. In its complaint, the Commission alleged that at the direction of its president, Marshall L. Schield, Schield Management Company, an investment adviser registered with the Commission, destroyed and altered documents it was required to produce during the course of a statutorily authorized Commission examination. The complaint also alleged that Marshall Schield directed Schield Management personnel to destroy e-mails, tamper with logs reflecting losses suffered by clients due to trading errors, and destroy Personal Identification Numbers (PINs) used in trading.
Schield and Schield Management Company, without admitting or denying the allegations of the complaint, consented to the order which permanently enjoins and restrains them from failing to make and keep such records as the Commission by rule, has prescribed or failing to make all records available for examination by representatives of the Commission in violation of Section 204 of the Investment Advisers Act [15 U.S.C. § 80b-4] and Rule 204-2 thereunder [17 C.F.R. § 275.240-2]. Schield and Schield Management Company were also ordered to pay a civil money penalty in the amounts of $75,000 and $100,000 respectively.