In the Matter of Augustine Capital Management, LLC, et al.
Admin. Proc. File No. 3-17740
On October 26, 2017, the Commission settled administrative and cease-and-desist proceedings (the “Order”) that were instituted on December 20, 2016 against Augustine Capital Management, LLC (f/k/a Augustine Capital Management, Inc.) (“ACM”), an investment adviser for Augustine Fund, L.P., a private fund (the “Fund”); and two of ACM’s owners, John T. Porter (“Porter”) and Thomas F. Duszynski, CPA (“Duszynski”) (collectively, the “Respondents”). In the Order, the Commission found that, from 2012 to 2015, the Respondents violated federal securities laws when they caused multiple conflicted transactions and made misrepresentations while acting as the investment adviser to the Fund. The Respondents used Fund monies to benefit themselves and entities owned by Porter and Duszynski without disclosing these conflicts of interest to the Fund's limited partners. The Commission ordered, and the Respondents have paid, a total of $1,003,306.11 in disgorgement, prejudgment interest, and civil money penalties to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents’ conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. IA-4800.
On December 14, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP f/k/a Damasco & Associates LLP, as the Tax Administrator of the Fair Fund.
On November 29, 2018, the Commission published a notice of proposed plan of distribution and opportunity to comment and simultaneously published the proposed plan of distribution (the “Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-84675 and the Proposed Plan.
On March 18, 2019, the Commission issued an order approving the plan of distribution and published the approved plan of distribution (“Plan”). See the Commission’s Order: Release No. 34-85340 and the Plan.
The Plan provides that the distribution of the Fair Fund shall be made to investors who were harmed by the Respondent’s conduct described in the Order in accordance with the methodology detailed in paragraph 8 of the Plan.
For more information, please contact the Commission:
Office of Distributions