Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Section 9(b) of the Investment Company Act of 1940

2018-08-30 3-17387 Lathen, Donald F. ("Jay") Jr. Eden Arc Capital Management, LLC Eden Arc Capital Advisors, LLC /litigation/apdocuments/ap-3-17387.xml 2016-08-15 33-10120 34-78572 IA-4485 IC-32214 Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Section 9(b) of the Investment Company Act of 1940 /litigation/admin/2016/33-10120.pdf 2016-08-17 AP-4068 Order Scheduling Hearing and Designating Presiding Judge /alj/aljorders/2016/ap-4068.pdf 2016-08-25 AP-4094 Order Postponing Hearing and Scheduling Prehearing Conference /alj/aljorders/2016/ap-4094.pdf 2016-09-13 AP-4149 Order Following Prehearing Conference /alj/aljorders/2016/ap-4149.pdf 2016-09-19 AP-4168 Order Denying Leave for Summary Disposition /alj/aljorders/2016/ap-4168.pdf 2016-10-03 AP-4218 Order Revising Procedural Schedule and Hearing Date /alj/aljorders/2016/ap-4218.pdf 2016-09-08 Respondents' Answer and Affirmative Defenses /litigation/apdocuments/3-17387-event-7.pdf 2016-10-12 AP-4247 Order On Motion to Quash /alj/aljorders/2016/ap-4247.pdf 2016-10-18 AP-4272 Order On Motion to Preclude Advice-Of-Counsel Defense /alj/aljorders/2016/ap-4272.pdf 2016-11-02 AP-4317 Order On the Division's Disclosures /alj/aljorders/2016/ap-4317.pdf 2016-11-04 AP-4322 Order Requiring in Camera Submission /alj/aljorders/2016/ap-4322.pdf 2016-09-27 Division's Motion to Preclude Respondents' Advice of Counsel Defense and to Issue Subpoenas and Memorandum of Law in Support /litigation/apdocuments/3-17387-event-17.pdf 2016-09-27 Declaration of Alexander Janghorbani in Suppport of Division's Motion to Preclude Respondents' Advice of Counsel Defense and to Issue Subpoenas /litigation/apdocuments/3-17387-event-18.pdf 2016-11-10 AP-4341 Order On Privilege Waiver /alj/aljorders/2016/ap-4341.pdf 2016-10-06 Division's Reply Memorandum of Law in Further Support of its Motion to Preclude Respondents' Advice of Counsel Defense and to Issue Subpoenas /litigation/apdocuments/3-17387-event-27.pdf 2016-11-03 Division's Second Motion to Preclude Respondents' Advice of Counsel Defense /litigation/apdocuments/3-17387-event-41.pdf 2016-11-18 AP-4371 Order Denying the Division's Second Motion to Preclude Respondents' Advice-Of-Counsel Defense /alj/aljorders/2016/ap-4371.pdf 2016-11-21 AP-4379 Order Regarding Motion for Reconsideration /alj/aljorders/2016/ap-4379.pdf 2016-11-14 Respondents' Memorandum of Law in Opposition to Division's Second Motion to Preclude Reliance on the Advice of Counsel Defense /litigation/apdocuments/3-17387-event-52.pdf 2016-11-08 Expert Report of Martin E. Lybecker /litigation/apdocuments/3-17387-event-50.pdf 2016-11-07 Declaration of Judith Weinstock in Support of the Division's Motion for a Finding of Privilege Waiver /litigation/apdocuments/3-17387-event-49.pdf 2016-11-07 Division's Reply Memorandum in Further Support of its Motion for a Finding of Privilege Waiver /litigation/apdocuments/3-17387-event-48.pdf 2016-11-01 Declaration of Janna I. Berke Regarding Disclosure of the Division's Investigative Files /litigation/apdocuments/3-17387-event-39.pdf 2016-10-25 Declaration of Harlan Protass in Support of the Eden Arc Resps' Opposition to the Division's Motion to Quash /litigation/apdocuments/3-17387-event-36.pdf 2016-10-26 Division's Motion for a Finding of Privilege Waiver and Memorandum of Law in Support /litigation/apdocuments/3-17387-event-37.pdf 2016-11-29 AP-4395 Order Redesignating Presiding Judge /alj/aljorders/2016/ap-4395.pdf 2016-11-14 Affirmation of Harlan Protass in Support of the Respondents' Memorandum of Law in Opposition to Division's Second Motion to Preclude Reliance on the Advice of Counsel Defense /litigation/apdocuments/3-17387-event-53_redacted.pdf 2016-11-15 Division's Reply Memorandum of Law in Further Support of its Second Motion to Preclude Respondents' Advice of Counsel Defense /litigation/apdocuments/3-17387-event-54.pdf 2016-11-15 Declaration of Nancy A. Brown (In support of Division's Reply Memorandum of Law in Further Support of its Second Motion to Preclude Respondents' Advice of Counsel Defense) /litigation/apdocuments/3-17387-event-55_redacted.pdf 2016-11-16 Letter dated 11/15/16 from Respondents to Administrative Law Judge in response to Division's reply memorandum in further support of second motion to preclude advice of counsel defense /litigation/apdocuments/3-17387-event-57.pdf 2016-11-16 The Eden Arc Respondents' Memorandum of Law in Opposition to the Division of Enforcement's Motion for a Finding of Privilege Waiver /litigation/apdocuments/3-17387-event-58.pdf 2016-11-16 Affirmation of Harlan Protass in Support of The Eden Arc Respondents' Memorandum of Law in Opposition to the Division of Enforcement's Motion for a Finding of Privilege Waiver /litigation/apdocuments/3-17387-event-59_redacted.pdf 2016-12-01 AP-4406 Second Order Revising Procedural Schedule and Hearing Date /alj/aljorders/2016/ap-4406.pdf 2016-12-01 AP-4407 Order Following in Camera Review of Documents Withheld by the Division /alj/aljorders/2016/ap-4407.pdf 2016-09-16 Division's Memorandum of Law in Opposition to Respondent's Motion for Leave to Move for Summary Disposition /litigation/apdocuments/3-17387-event-14_redacted.pdf 2016-12-13 AP-4440 Order Regarding Mediation /alj/aljorders/2016/ap-4440.pdf 2016-12-14 AP-4447 Order Denying Reconsideration and Regarding Defense-Strategy Documents /alj/aljorders/2016/ap-4447.pdf 2016-12-16 AP-4456 Order Granting Joint Motion for Mediation /alj/aljorders/2016/ap-4456.pdf 2016-12-16 AP-4460 Third Order Revising Procedural Schedule /alj/aljorders/2016/ap-4460.pdf 2016-12-01 The Eden Arc Resps' Memorandum of Law in Further Support of their Motion for Reconsideration of this Court's "Order on Privilege Waiver" /litigation/apdocuments/3-17387-event-66.pdf 2016-12-01 Letter dated 12/1/16 from Division to ALJ Patil, apprising the court of matters relevant to Respondent's Motion for Reconsideration of the Order on Privilege Waiver, with undesignated exhibits attached /litigation/apdocuments/3-17387-event-69.pdf 2016-12-22 AP-4479 Order Regarding the Division's Motion to Compel /alj/aljorders/2016/ap-4479.pdf 2016-12-23 AP-4483 Clarification Order /alj/aljorders/2016/ap-4483.pdf 2016-12-29 AP-4495 Order Regarding the Division's Motion to Compel Hinckley Allen /alj/aljorders/2016/ap-4495.pdf 2016-12-20 Division's Motion to Compel Respondents' Compliance with Court's 10/18, 11/10 and 12/14 Orders or to Preclude Resps from Offering Testimony or Evidence Regarding their Reliance on the Advice of Kevin Galbraith /litigation/apdocuments/3-17387-event-83.pdf 2016-12-30 Division's Motion to compel Third Party Hinckley Allen to Comply with the Subpoena, or to Preclude Resps from Offering Testimony or Evidence Regarding their Reliance on Advice of Hinckley Allen /litigation/apdocuments/3-17387-event-91.pdf 2017-01-03 Declaration of Nancy Brown in Support of Division's Motion to compel Third Party Hinckley Allen to Comply with the Subpoena, or to Preclude Resps from Offering Testimony or Evidence Regarding their Reliance on Advice of Hinckley Allen /litigation/apdocuments/3-17387-event-92.pdf 2017-01-03 The Eden Arc Respondents' Memorandum of Law in Opposition to Division's Motion to Compel /litigation/apdocuments/3-17387-event-94.pdf 2017-01-09 AP-4508 Order Following Respondents' in Camera Submission Related to Kevin Galbraith /alj/aljorders/2017/ap-4508.pdf 2017-01-10 AP-4513 Order Resolving the Division's Motion to Compel Hinckley Allen /alj/aljorders/2017/ap-4513.pdf 2017-01-18 AP-4533 Order Revising Hearing Location /alj/aljorders/2017/ap-4533.pdf 2017-01-23 AP-4542 Order Regarding Subpoena Directed to Joseph Ferraro /alj/aljorders/2017/ap-4542.pdf 2017-01-26 AP-4551 Order Following Final Prehearing Conference, Resolving Certain Motions, and Directing Subpoena Compliance as to Ferraro /alj/aljorders/2017/ap-4551.pdf 2017-01-12 Divison's Memorandum of Law in Support of its Motion in Limine to Preclude Respondents from Offering Testimony or Evidence on Advice Received from Attorney Kevin Galbraith /litigation/apdocuments/3-17387-event-108.pdf 2017-01-12 Declaration of Janna Berke in Support of Divison's Motion in Limine to Preclude Respondents from Offering Testimony or Evidence on Advice Received from Attorney Kevin Galbraith /litigation/apdocuments/3-17387-event-109.pdf 2017-01-12 Divison's Memorandum of Law in Support of its Motion in Limine to Preclude Irrelevant Evidence & Argument Regarding Reliance on Advice of Counsel /litigation/apdocuments/3-17387-event-110.pdf 2017-01-12 Declaration of Judith Weinstock in Support of Divison's Motion in Limine to Preclude Irrelevant Evidence & Argument Regarding Reliance on Advice of Counsel /litigation/apdocuments/3-17387-event-111.pdf 2017-01-12 Memorandum of Law in Support of the Division's Motion in Limine to Preclude Certain Evidence and Testimony /litigation/apdocuments/3-17387-event-112.pdf 2017-01-12 Declaration of Lindsay S. Moilanen in Support of Divison's Motion in Limine to Preclude Certain Evidence and Testimony /litigation/apdocuments/3-17387-event-113.pdf 2017-01-27 AP-4564 Order Regarding the Division's Motion to Compel or Preclude, and Following Further in Camera Review /alj/aljorders/2017/ap-4564.pdf 2017-01-06 Hinckley, Allen & Snyder, LLP's Objection to the Division of Enforcement's Motion to Compel /litigation/apdocuments/3-17387-event-95.pdf 2017-01-06 Division's Reply Memorandum in Further Support of its Motion to Compel Third Party Hinckley Allen to Comply w/Subpoena or to Preclude /litigation/apdocuments/3-17387-event-97.pdf 2017-01-06 Declaration of Nancy A. Brown in Support of Division's Reply Memorandum in Further Support of its Motion to Compel Third Party Hinckley Allen to Comply w/Subpoena or to Preclude /litigation/apdocuments/3-17387-event-98.pdf 2017-01-09 Letter dated 1/4/17 from Division to ALJ in response to letter from Mr. Protass dated 12/30/16 regarding Respondents' in camera submission ordered by the Court on 12/23/16 /litigation/apdocuments/3-17387-event-100.pdf 2017-01-09 The Eden Arc Respondents' Memorandum of Law in Opposition to Division's Motion to Compel Third Party Hinckley, Allen & Snyder LLP /litigation/apdocuments/3-17387-event-101.pdf 2017-01-09 Affirmation of Harlan Protass in Support of The Eden Arc Respondents' Memorandum of Law in Opposition to Division's Motion to Compel Third Party Hinckley, Allen & Snyder LLP /litigation/apdocuments/3-17387-event-102.pdf 2017-01-19 Letter dated 1/17/17 from Division to ALJ regarding its motion in limine to preclude respondents from offering testimony/evidence/advice received from Kevin Galbraith /litigation/apdocuments/3-17387-event-118.pdf 2017-01-23 Division's Prehearing Brief /litigation/apdocuments/3-17387-event-120.pdf 2017-01-23 The Eden Arc Respondents' Memoranum of Law in Opposition to Division's Motion in Limine to Preclude Evidence Regarding Advice of Counsel /litigation/apdocuments/3-17387-event-121.pdf 2017-01-23 Affirmation of Harlan Protass in Support of The Eden Arc Respondents' Memoranum of Law in Opposition to Division's Motion in Limine to Preclude Evidence Regarding Advice of Counsel /litigation/apdocuments/3-17387-event-122.pdf 2017-01-23 The Eden Arc Respsondents' Memorandum of Law in Opposition to Division's Motion in Limine to Preclude Certain Evidence /litigation/apdocuments/3-17387-event-123.pdf 2017-01-23 The Eden Arc Respsondents' Memorandum of Law in Opposition to Division's Motion in Limine to Preclude Evidence or Testimony on Advice Received from Kevin Galbraith /litigation/apdocuments/3-17387-event-124.pdf 2017-01-23 Affirmation of Harlan Protass in Support of the Eden Arc Respondents' Memorandum of Law in Opposition to Division's Motion in Limine to Preclude Evidence or Testimony on Advice Received from Kevin Galbraith /litigation/apdocuments/3-17387-event-125.pdf 2017-01-23 Respondents' Prehearing Brief /litigation/apdocuments/3-17387-event-126.pdf 2016-12-20 Declaration of Nancy Brown in Support of Division's Motion to Compel Respondents' Compliance with Court's 10/18, 11/10 and 12/14 Orders or to Preclude Resps from Offering Testimony or Evidence Regarding their Reliance on the Advice of Kevin Galbraith /litigation/apdocuments/3-17387-event-85.pdf 2016-12-21 Letter dated 12/20/16 from Division to ALJ enclosing and discussing privilege log sent by Respondents' attorney in response to Division's Motion to Compel /litigation/apdocuments/3-17387-event-87.pdf 2017-02-24 AP-4628 Post-Hearing Order /alj/aljorders/2017/ap-4628.pdf 2017-03-02 AP-4646 Order On Hearing Exhibits /alj/aljorders/2017/ap-4646.pdf 2017-03-09 AP-4667 Order Granting Extension /alj/aljorders/2017/ap-4667.pdf 2017-03-03 Letter dated 3/2/17 from Division to ALJ objecting to Respondents' arguments. /litigation/apdocuments/3-17387-event-152.pdf 2017-03-30 AP-4721 Order Granting in Part Motions to Correct Hearing Transcript /alj/aljorders/2017/ap-4721.pdf 2017-03-31 AP-4723 Order On Stipulations /alj/aljorders/2017/ap-4723.pdf 2017-03-29 The Parties' Factual Stipulations /litigation/apdocuments/3-17387-event-162.pdf 2017-04-10 Division's Post-Hearing Brief /litigation/apdocuments/3-17387-event-168.pdf 2017-04-19 AP-4756 Order Granting Extension /alj/aljorders/2017/ap-4756.pdf 2017-04-26 AP-4773 Order Granting Extension /alj/aljorders/2017/ap-4773.pdf 2017-05-09 AP-4792 Motion to the Commission for Extension /alj/aljorders/2017/ap-4792.pdf 2017-05-10 Letter dated 5/8/17 from Division to ALJ to bring a matter before the Court that was disclosed to the Division /litigation/apdocuments/3-17387-event-193.pdf 2017-05-22 Division's Supplemental Statement of Facts /litigation/apdocuments/3-17387-event-197.pdf 2017-05-22 Division's Responses to Respondents' Proposed Findings of Fact in Support of their Inability to Pay Defense /litigation/apdocuments/3-17387-event-198.pdf 2017-05-19 Division's Post-Hearing Reply Brief /litigation/apdocuments/3-17387-event-195.pdf 2017-05-22 Division's Responses to Respondents' Proposed Findings of Fact /litigation/apdocuments/3-17387-event-196.pdf 2017-05-31 AP-4840 Order Granting Motion to Admit Financial Disclosure Form /alj/aljorders/2017/ap-4840.pdf 2017-06-02 Letter dated 5/31 /17 from Division to ALJ objecting to Resps' motion to admit Lathen's financial disclosure form into evidence /litigation/apdocuments/3-17387-event-201.pdf 2017-06-05 Letter dated 5/30/17 from H. Protass (Respondent's counsel) to ALJ asserting Eden Arc's constitutional objections to the proceeding. /litigation/apdocuments/3-17387-event-202.pdf 2017-06-05 Letter dated 6/2/17 from Weinstock (SEC) to ALJ in response to Respondents' Constitutional Objections to the Proceeding /litigation/apdocuments/3-17387-event-203.pdf 2017-06-13 AP-4865 Order Granting in Part Respondents' Motion to File Financial Documents Under Seal and Electronically /alj/aljorders/2017/ap-4865.pdf 2017-06-19 AP-4875 Order Directing Filing Under Seal /alj/aljorders/2017/ap-4875.pdf 2017-06-21 AP-4879 Order On Respondents' Amended Filings /alj/aljorders/2017/ap-4879.pdf 2017-06-29 Division's Responses to Respondents' Amended Proposed Findings of Fact /litigation/apdocuments/3-17387-event-214.pdf 2017-07-10 Respondents' Statement of Facts /litigation/apdocuments/3-17387-event-218.pdf 2017-06-12 Letter dated 6/9/17 from division to ALJ objecting to Resp's submission of "Amended" filings /litigation/apdocuments/3-17387-event-206.pdf 2017-07-10 Respondents' Responses and Objections to Division's Statement of Facts /litigation/apdocuments/3-17387-event-216.pdf 2017-07-10 Respondents' Post-Hearing Brief /litigation/apdocuments/3-17387-event-217.pdf 2017-07-24 Resps' Amended Responses and Objections to Div's Statement of Facts /litigation/apdocuments/3-17387-event-226.pdf 2017-07-24 Resps' Amended Statements of Facts /litigation/apdocuments/3-17387-event-227.pdf 2017-08-16 AP-4975 Order On Revisions to Record Index /alj/aljorders/2017/ap-4975.pdf 2017-08-16 ID-1161 Initial Decision /alj/aljdec/2017/id1161jsp.pdf 2017-08-15 Respondents' Post-Hearing Reply Brief /litigation/apdocuments/3-17387-event-230.pdf 2017-08-29 Division's Motion to Correct Manifest Errors of Fact /litigation/apdocuments/3-17387-event-288.pdf 2017-09-11 Respondent's Opposition to Division's Motion to Correct Manifest Errors of Fact /litigation/apdocuments/3-17387-event-289.pdf 2017-09-15 AP-5051 Order On Motion to Correct Manifest Errors of Fact /alj/aljorders/2017/ap-5051.pdf 2017-11-02 33-10434 34-82007 IA-4804 IC-32895 Notice That Initial Decision Has Become Final /alj/aljdec/2017/33-10434.pdf 2017-12-08 AP-5336 Order Designating Presiding Judge /alj/aljorders/2017/ap-5336.pdf 2017-12-05 Respondents' Application for Recovery of Legal Fees and Expenses Pursuant to the Equal Access to Justice Act /litigation/apdocuments/3-17387-event-292_redacted.pdf 2017-12-18 AP-5398 Order On Equal Access to Justice Act Proceeding /alj/aljorders/2017/ap-5398.pdf 2018-01-09 AP-5440 Order On Conference Results and Electronic Filing /alj/aljorders/2018/ap-5440.pdf 2018-01-25 AP-5533 Order Denying Bifurcation Request and Sealing Financial Disclosures /alj/aljorders/2018/ap-5533.pdf 2017-12-19 Respondent Lathen's Affirmation in Support of the Respondents' Application for Recovery of Legal Fees and Expenses Pursuant to the Equal Access to Justice Act, with Exhibits 1-4 /litigation/apdocuments/3-17387-event-296.pdf 2018-01-03 Respondents' Supplemental Memorandum of Law Related to Respondents' EAJA Application, and Motion to Seal Financial Disclosures, with Exhibits 1-6 /litigation/apdocuments/3-17387-event-297.pdf 2018-01-03 Affirmation of Donald Lathen in Support of the Application for Recovery of Legal Fees and Expenses Pursuant to the EAJA, with Exhibits 1-2 /litigation/apdocuments/3-17387-event-298.pdf 2018-02-06 AP-5572 Order Scheduling Oral Argument /alj/aljorders/2018/ap-5572.pdf 2018-02-15 AP-5601 Order Sealing Exhibits /alj/aljorders/2018/ap-5601.pdf 2018-02-26 AP-5629 Order Granting Extension /alj/aljorders/2018/ap-5629.pdf 2018-03-05 AP-5638 Order Sealing Submission in Part /alj/aljorders/2018/ap-5638.pdf 2018-03-05 Respondents' Reply Memorandum of Law in Further Support of Application for Recovery of Legal Fees and Expenses Pursuant to EAJA, with Affirmation of Donald Lathen, and Exhibits 1-4 /litigation/apdocuments/3-17387-event-311.pdf 2018-01-08 Joint letter dated 1 /5/18 from the Division and Respondents to ALJ submitting the results of their conference to the Court /litigation/apdocuments/3-17387-event-299.pdf 2018-01-08 Letter dated 1 /5/18 from Division to ALJ in further explanation of Division's positions set forth in the parties' joint correspondence to the Court on this Date /litigation/apdocuments/3-17387-event-300.pdf 2018-01-08 Letter dated 1/5/18 from Respondents to ALJ in response to Division's letter of 1/5/18 /litigation/apdocuments/3-17387-event-301.pdf 2018-02-14 Letter dated 2/14/18 from Division to ALJ, requesting that Exhibits A through C of its response to the application for fees and expenses be held under seal pursuant to AP-5533 /litigation/apdocuments/3-17387-event-308.pdf 2018-02-14 Division's Response to Application for Fees and Expenses of Eden Arc Capital Management LLC and Eden Arc Capital Advisers LLC, with Exhibits A-D /litigation/apdocuments/3-17387-event-307.pdf 2018-03-12 AP-5642 Order Following Oral Argument /alj/aljorders/2018/ap-5642.pdf 2018-03-15 AP-5649 Order Regarding Slide Presentation /alj/aljorders/2018/ap-5649.pdf 2018-03-13 Letter dated 3/12/18 from Division to Sec'y. Fields, containing redacted and unredacted copy of the slide presentation used during the oral argument on 3/8/18 /litigation/apdocuments/3-17387-event-314.pdf 2018-03-28 Letter dated 3/28/18 from Division to ALJ in response to Respondents' letter dated 3/26/18 /litigation/apdocuments/3-17387-event-317.pdf 2018-04-02 Letter dated 3/26/18 from Respondents to ALJ in response to Division's PowerPoint slide presentation /litigation/apdocuments/3-17387-event-318.pdf 2018-06-25 AP-5847 Notice of Stay /alj/aljorders/2018/ap-5847.pdf 2018-07-24 AP-5935 Notice of Extension of Stay /alj/aljorders/2018/ap-5935.pdf 2018-08-23 AP-5954 Notice from the Chief Administrative Law Judge /alj/aljorders/2018/ap-5954.pdf 2018-08-30 ID-1259 Initial Decision On Equal Access to Justice Act Application /alj/aljdec/2018/id1259jsp.pdf