SECURITIES EXCHANGE ACT OF 1934
Release No. 44487 / June 28, 2001
INVESTMENT ADVISERS ACT OF 1940
Release No. 1950 / June 28, 2001
ADMINISTRATIVE PROCEEDING
File No. 3-10526
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST JAMES L. BINGE AND ERIC V. BARTOLI
On June 28, 2001, the Commission entered an Order Instituting Administrative Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act") and Pursuant to Section 203(f) of the Investment Advisers Act of 1940 against James L. Binge ("Binge") and Eric V. Bartoli ("Bartoli") based on the entry of a final judgment of permanent injunction against them.
In the Order, the Division of Enforcement alleged that Binge was a director of Cyprus Fund, Inc. ("Cyprus Fund"), an unregistered foreign investment company. In the Order, the Division of Enforcement alleged that Bartoli was a director of Cyprus Fund, Inc. ("Cyprus Fund"), an unregistered foreign investment company and a registered principal and general manager of Latin American Services Co., Ltd. ("LASCO"). The Division of Enforcement further alleged that on August 27, 2000, the commission filed an emergency action seeking a temporary restraining order, asset freeze and appointment of a receiver against Cyprus Fund, its investment advisor, Latin American Services Co., Ltd., Bartoli, Binge, and other directors of Cyprus Fund. Securities and Exchange Commission v. Latin American Services Co., Ltd, Eric V. Bartoli, James L. Binge, Douglas R. Shisler and Peter J. Esposito, Case No. 99-2360-Civ-Davis (S.D. Fla.). In its Complaint, the Commission alleged the ongoing fraudulent sale of unregistered securities, specifically Cyprus Fund shares, and the misappropriation of investor funds by principals of Cyprus Fund, including Binge and Bartoli. On September 3, 1999, the United States District Court for the Southern District of Florida entered a preliminary injunction against defendants, including Binge and Bartoli, and extended the asset freeze to the conclusion of the case.
On September 29, 2000, a Final Judgment of Permanent Injunction and Other Relief was entered against Binge, enjoining him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of Exchange Act and Rule 10b-5 thereunder. On September 29, 2000, a Final Judgment of Permanent Injunction and Other Relief was entered against Bartoli, enjoining him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act, Section 10(b) of Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940.
A hearing will be held to determine what, if any, remedial action is appropriate and in the public interest.