Bradford C. Bleidt, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18993A / December 15, 2004

Securities and Exchange Commission v. Bradford C. Bleidt, et al., Civil Action No. 04-12415-NG (D.Mass. November 12, 2004).

COURT ORDERS PRELIMINARY INJUNCTION AGAINST BOSTON MONEY MANAGER BRADFORD C. BLEIDT AND HIS INVESTMENT ADVISORY FIRM

The Securities and Exchange Commission announced that, on December 2, 2004, U. S. District Judge Nancy Gertner entered a preliminary injunction against Bradford C. Bleidt and his investment advisory firm Allocation Plus Asset Management Co., Inc. ("Allocation Plus"), thereby extending an asset freeze that the Court had previously entered on November 12, 2004.

As the Commission set forth in its Complaint and supporting documents, on or about November 11, 2004, Bleidt sent a taped confession to Commission's Boston office in which he admitted that he had "stolen tens of millions" from clients over a period of 20 years. In its Complaint, the SEC charged that Bleidt confessed that he had clients make checks payable to Allocation Plus Management Corp. and then diverted the funds into a bank account that he controlled. The SEC also alleged that in the tape Bleidt stated "the day of reckoning" came about when he no longer had enough funds to cover a client's requests for a withdrawal. "The money's gone. I stole it," Bleidt said in the recording, according to the Complaint. In its papers filed with the Court in support of the entry of the preliminary injunction, the Commission detailed Bleidt's fraud and included a transcript of the recorded confession Bleidt sent to the Commission's Boston office, as well as transcripts of other recorded confessions that Bleidt made for various parties. The Commission also provided the Court a detailed description of Bleidt's use of investor funds in a bank account that he controlled.

Previously, on November 18, 2004, the Court appointed Boston attorney David A. Vicinanzo as receiver to preserve the assets of the defendants, including a radio station and other entities owned or controlled by Bleidt. The appointment of Mr. Vicinanzo came shortly after the Commission commenced the action by seeking and obtaining a temporary restraining order, including an asset freeze, on November 12, 2004.

In a parallel criminal proceeding, federal law enforcement authorities arrested Bleidt on November 19, 2004 based on a compliant charging federal criminal mail fraud. On November 22, 2004, Bleidt made an initial appearance in that proceeding before U.S. Magistrate Judge Joyce London Alexander where he was referred for psychiatric evaluation.

For more information see Litigation Release No. 18972 (November 16, 2004)