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SEC v. Peter N. Brant Case No. 1:05-cv-00453-AK

Oct. 14, 2022

On March 3, 2005, the Commission filed a complaint (the “Complaint”) against Peter N. Brant (“Brant”). Between December 1998 and May 2000, Brant, in violation of a previous Commission order barring him from the security industry, acted as an investment advisor to six customers of Deutsche Banc Alex Brown, Inc. While engaged as an investment adviser in violation of the terms of the Commission order, Brant engaged in numerous fraudulent activities in these customers’ accounts. Brant misappropriated client funds for his personal use, made unsuitable and unauthorized investment decisions, traded in speculative stocks and churned accounts. As a result of his fraud, Brant obtained at least $173,402.80 and caused his client’s accounts to drop dramatically in value. See Complaint.

Brant was ordered to pay a total of $242,863.88 in disgorgement and prejudgment interest to the Clerk of Court. The Clerk of Court was ordered to hold the funds in an interest bearing account with the Court Registry Investment System (collectively, the “Fund”), pending further order of the Court. Brant was also ordered to pay a $3,000,000.00 civil money penalty to the Commission. See Brant’s Final Judgment.

Brant failed to make payments and in November 2012, the Commission agreed to accept Brant’s compromise offer to pay $300,000.00 toward disgorgement by relinquishing his claim to all escrowed funds ($91,981.43) previously seized through post-judgment writs of garnishment and to pay the remaining $208,018.57 in five equal annual installments in full satisfaction of the judgment.

On July 29, 2014, the Court entered an order appointing Damasco & Associated LLP as the Tax Administrator of the Fund to fulfill the tax obligations of the Fund. The Court also authorized Commission staff to approve and arrange payment of all future tax obligations and Tax Administrator fees and expenses owed by the Fund directly from the Fund without further Court order.

On November 5, 2015, the Commission filed a motion to appoint Michael S. Lim, a Commission employee, as the Distribution Agent to oversee the administration and distribution of the Fund to harmed investors and to approve the proposed plan of distribution (the “Plan”). See the Commission’s Motion with the Plan. On November 6, 2015, the Court entered an order granting the Commission’s motion. See the Court’s Order.

The Plan provides for the distribution of the Net Distribution Fund, consisting of the Fund and any future funds received into the Fund, less any reserve for tax obligations and fees and expenses of the Tax Administrator to Eligible Recipients on a pro-rata basis in accordance with the Plan.

On December 31, 2015, the Commission filed a motion and memorandum in support of the order for distribution of the Net Distribution Fund to each Eligible Recipient in accordance with the terms of the Plan. See the Commission’s Motion and Memorandum of Support.

On January 4, 2016, the Court granted the Commission’s motion and entered an order approving distribution of the Net Distribution Fund in accordance with the Plan. See the Court's Order

For more information, please contact the Distribution Agent:

Michael S. Lim
Office of Distributions
Telephone Number: 202-551-4659

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