U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21628 / August 18, 2010
Securities and Exchange Commission v. Thompson Consulting, Inc., Case Number 2:08-cv-00171 (Judge Bruce S. Jenkins)(D.Ut. filed March 4, 2008)
FINAL JUDGMENTS OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANTS THOMPSON CONSULTING, INC., KYLE J. THOMPSON, DAVID C. CONDIE AND E. SHERMAN WARNER
On August 17, 2010, the Honorable Bruce S. Jenkins, United States District Court Judge for the District of Utah, entered final judgments of permanent injunction and other relief against Defendants Thompson Consulting, Inc. (Thompson Consulting), Kyle J. Thompson (Thompson), David C. Condie (Condie) and E. Sherman Warner (Warner). The final judgments against Thompson, Condie and Warner enjoin them from violating Sections 17(a)(2) and (3) of the Securities Exchange Act of 1933 (Securities Act).
The final judgment against Thompson Consulting enjoins Thompson Consulting from violations of Sections 17(a)(2) and (3) of the Securities Act and Section 206(2) of the Investment Advisers Act of 1940. In addition to the injunctive relief, Thompson Consulting is liable for disgorgement of $400,000. Thompson Consulting, Thompson, Condie and Warner consented to the entry of the final judgments without admitting or denying the allegations of the complaint.
The Commission commenced this action on March 4, 2008, alleging Thompson Consulting, a hedge fund adviser, and its principals Thompson, Condie and Warner violated the antifraud provisions of the securities laws by making undisclosed subprime and other high-risk investments which resulted in the near total asset losses of two hedge funds managed by the adviser. The Commission's complaint also alleged that Thompson Consulting's deviations from its stated investment policy resulted in substantial losses to the hedge funds.