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U.S. Securities and Exchange Commission


Litigation Release No. 23084 / September 16, 2014

Securities and Exchange Commission v. Joseph D. Stilwell, Civil Action No. 14-misc-257 (S.D.N.Y.)

Court Orders Joseph D. Stilwell to Testify in Response to SEC Investigative Subpoena

The Securities and Exchange Commission announced today that, on September 11, 2014, the United States District Court for the Southern District of New York entered an order requiring Joseph D. Stilwell ("Stilwell") to testify pursuant to an investigative subpoena.

On August 13, 2014, the Commission filed an application to enforce its investigative subpoena. According to the Commission's application, on November 27, 2012, the Commission issued a Formal Order Directing Private Investigation, entitled In the Matter of Stilwell Value, LLC. Stilwell failed to comply with a validly issued and served subpoena for his testimony relating to this investigation. On September 9, 2014, the court held a hearing on the Commission's application and ruled in the Commission's favor. On September 11, 2014, the court entered an order requiring Stilwell to appear for testimony.

Stilwell is the principal owner and managing member of Stilwell Value, LLC ("Stilwell Value"), an investment adviser to a series of investment funds (the "Stilwell Funds"). As disclosed in the Commission's earlier application, the Commission is investigating, among others things, whether Stilwell, Stilwell Value, and possibly others violated the anti-fraud or other provisions of the federal securities laws in connection with certain inter-fund loans at the Stilwell Funds. The investigation relates, in part, to whether Stilwell and Stilwell Value accurately disclosed the existence and accurate terms of, as well as potential conflicts of interest created by, those inter-fund loans.

The Commission is continuing to conduct its fact-finding inquiry and has not concluded that anyone has violated the securities laws.



Modified: 09/16/2014