UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release No. 2133A / May 29, 2003
File No. 3-11138
In the Matter of
ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Yehuda Shiv ("Respondent" or "Shiv").
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Sections III.2 and III.4 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
On the basis of this Order and Respondent's Offer, the Commission finds that:
- Shiv, age 72, is an Israeli citizen and a resident of New York, New York. Prior to December 10, 2001, Shiv was the President of Sagam Capital Management Corp. ("Sagam Corp.") and Sagam Capital LLC ("Sagam LLC"), two investment advisers registered with the Commission, and Shiv made investment decisions for all Sagam Corp. and Sagam LLC client accounts.
- On January 23, 2003, a final judgment was entered by consent against Shiv, permanently enjoining him from future violations of Sections 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Yehuda Shiv, et al., Civil Action Number 01CV11282 (AKH), in the United States District Court for the Southern District of New York.
- The Commission's complaint alleged that from 1995 to December 2001, in connection with the purchase and sale of securities, Shiv created and delivered false and misleading account statements to his investment advisory clients and misappropriated assets in the clients' accounts.
- On July 24, 2002, Shiv pled guilty to two counts of securities fraud in violation of Title 15 United States Code Sections 78j(b) and Title 17 Code of Federal Regulations Section 240.10b-5, and Title 15 United States Code Sections 80b-6(1) and 80b-6(2), in United States v. Yehuda Shiv, Crim. Information No. 02CR135 (SWK) in the United States District Court of the Southern District of New York.
- The counts of the criminal information to which Shiv pled guilty alleged, inter alia, that Shiv defrauded his clients by creating and delivering materially false and misleading statements to them and by misappropriating money in the clients' accounts.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Shiv's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Section 203(f) of the Advisers Act, that Respondent Shiv be, and hereby is, barred from association with any investment adviser.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz