Comprehensive Capital Management, Inc.
Admin Proc. File No. 3-15393
On July 29, 2013, the Commission instituted and simultaneously settled proceedings against Comprehensive Capital Management, Inc. ("CCM"). The Commission found that CCM violated federal securities laws by failing reasonably to supervise Timothy J. Roth, an associated person of CCM, who misappropriated over $16 million from investment advisory accounts managed by CCM. The Commission further found that CCM violated the books and records provisions of the Investment Advisers Act of 1940 ("Advisers Act") by failing to maintain certain required records and also violated the Advisers Act's rules, which require firms to adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act. The Commission ordered CCM to pay a civil money penalty of $120,000 to the Commission and created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended. See the Commission"s Order, Release No. IA-3636.
On May 7, 2015, the Commission issued a notice of the proposed plan of distribution to transfer the Fair Fund funds to a court-appointed receiver and opportunity for comment and simultaneously provided a link to the proposed plan of distribution. The notice provided persons 30 days to submit their comments on the proposed plan of distribution. See the Commission's notice, Release No. 34-74899, and the proposed plan of distribution, Release No. 34-74899.
On June 23, 2015, the Commission issued an order approving the plan of distribution. See the Commission?s order, Release No. 34-75264.
On December 21, 2015, the Commission issued an order transferring the Fair Fund to the Receiver, appointed in the related Commission action, SEC v. Roth, et al., Case No. 11-cv-2079 (C.D. Ill.), for distribution to injured investors in accordance with a distribution plan to be approved by the court in that litigation. See the Commission's order: Release No. 34-76720.
On November 17, 2015, the Court approved the Receiver's Final Report and Plan of Distribution, which among other things terminated the receivership and discharged the Receiver.