INVESTMENT ADVISERS ACT OF 1940
Release No. 2186 / October 29, 2003
Administrative Proceedings
File No. 3-11318
In the Matter of LISA A. THIESFIELD, Respondent.
|
: ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS |
I.
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 Lisa A. Thiesfield ("Thiesfield" or "Respondent").
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") that 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 her 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.
III.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. Thiesfield, age 33, is a resident of Hartford, Connecticut. In or about 1998, Thiesfield was an aide to the Connecticut State Treasurer ("Treasurer"); she later served as the Treasurer's 1998 campaign manager. In or about January 1999, Thiesfield received a $1 million consulting contract from Triumph Capital Group, Inc., a Boston-based unregistered investment adviser with whom the Treasurer had invested $200 million in Connecticut state pension funds in November 1998. The contract provided, among other things, for Thiesfield to develop a marketing strategy for public pension funds on Triumph's behalf, identify potential investors for Triumph funds and introduce Triumph to such investors. Accordingly, at all relevant times, Thiesfield was a person associated with an investment adviser.
2. On September 24, 2003, a final judgment was entered by consent against Thiesfield, permanently enjoining her from future violations of Section 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. Paul J. Silvester, et al., Civil Action Number 3:00-CV-1941, in the United States District Court for the District of Connecticut.
3. The Commission's complaint, filed October 10, 2000, alleged, among other things, that Thiesfield aided and abetted Triumph and its officers in their violations of the federal securities laws by accepting a $1 million consulting contract from Triumph, which was given in order to secure the Treasurer's decision to invest $200 million in state pension funds in a Triumph investment fund.
4. On September 4, 2003, Thiesfield pleaded guilty to one count of theft or bribery concerning programs receiving federal funds, in violation of 18 U.S.C. § 666, in the United States District Court for the District of Connecticut. Thiesfield's plea agreement provides that the United States Attorney agrees that Thiesfield's sentencing guidelines range is 10 to 16 months imprisonment and a penalty between $3,000 and $30,000. The plea agreement further provides that the United States Attorney may request an upward departure on Thiesfield's criminal penalty up to $1 million.
5. The count of the indictment to which Thiesfield pleaded guilty alleged, among other things, that Thiesfield aided and abetted Silvester in knowingly, willfully and corruptly, soliciting consulting contracts valued at approximately $2 million, intending to be influenced and rewarded in connection with an increased investment of state pension funds with Triumph.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent's Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 203(f) of the Advisers Act, that Respondent Thiesfield be, and hereby is barred from association with any investment adviser;
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
By the Commission.
Secretary