U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Beacon Hill Asset Management, et al.

In October 2004, the SEC settled its civil enforcement action against Beacon Hill Asset Management, LLC and its four principals - John D. Barry, Thomas P. Daniels, John M. Irwin, and Mark P. Miszkiewicz. The defendants consented to permanent injunctions, being barred from associating with any investment adviser, and paying more than $2.4 million in disgorgement of fees and prejudgment interest, and $2 million in penalties.

The SEC alleged the defendants implemented a fraudulent scheme that resulted in investors losing more than $300 million. According to the complaint, from at least the beginning of 2002 through October 2002, the defendants misrepresented and manipulated Beacon Hill's valuation procedures for Beacon Hill Master, Ltd. (Master Fund), the core hedge fund that held and traded securities in Beacon Hill's three feeder hedge funds - Bristol Fund. Ltd., Safe Harbor Fund L.P., and Milestone Plus Partners L.P. As the value of these hedge funds decreased over the summer of 2002, the SEC claimed that Beacon Hill increasingly inflated the prices of the securities in the Master Fund to maintain the appearance of positive returns. For more information about the SEC's action, you can read Litigation Release Nos. 17831, 17841, 18745A, and 18950.

On January 30, 2004, the Grand Court of the Cayman Islands entered an Order placing the Master Fund in liquidation and appointing Theo Bullmore and Phillip Stenger as Joint Official Liquidators of the Master Fund, and Mr. Bullmore as Official Liquidator of Bristol Fund, Ltd. In addition, the U.S. District Court for the Southern District of New York appointed Mr. Stenger as Receiver of Safe Harbor Fund L.P.

For more information, you can visit Mr. Stenger's website regarding Safe Harbor, and Mr. Bullmore's website regarding the Master Fund.




Modified: 02/23/2006