In the Matter of Peter Kuperman, et al.
Admin. Proc. File No. 3-17075
On January 28, 2016, the Commission instituted and simultaneously settled cease and desist proceedings (the "Order") against QED Benchmark Management, L.L.C. ("QED") and its founder/fund manager Peter Kuperman ("Kuperman") (collectively, the "Respondents") for violations of the antifraud provisions of the federal securities laws while acting as investment advisers to a pooled investment vehicle, QED Benchmark L.P. (the "Fund"). The Respondents misled investors about the Fund's investment strategy and historical performance. The Order required Kuperman to pay a $75,000.00 civil penalty, and created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for any funds received pursuant to the Order (the "Fair Fund"). In the Order, Kuperman also undertook paying $2,877,000.00 as a donation to the Fair Fund to compensate Fund investors for harm caused by the misconduct set forth in the Order, for a total of $2,952,000.00 to comprise the Fair Fund. Additionally, the Order required that payments to 21 harmed investors be made within 120 days from receipt of Kuperman's payments and required the appointment of a tax administrator. The Order further provided for any taxes and related administrative expenses to be paid from the Fair Fund. See the Commission's order: Release No. 33-10009.
On March 1, 2016, the Commission issued an order appointing Damasco & Associates LLP as the Tax Administrator of the Fair Fund. See the Commission's order: Release No. 34-77262.
As of November 17, 2016, a total of $2,867,000.00 has been distributed to the harmed investors.