U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23589 / July 1, 2016
Securities and Exchange Commission v. Timothy F. Sexton, Jr., Civil Action No. 16-MC00136-LTB (D. Colo., filed June 27, 2016)
Court Orders CEO of Wyoming Investment Adviser to Appear At Hearing for Failure to Produce Business Records
The Securities and Exchange Commission announced today that it has filed a subpoena enforcement action in the U.S. District Court for the District of Colorado against Timothy F. Sexton, Jr., a resident of Dix Hills, New York, who is the chief executive officer and owner of Bantry Bay Capital LLC, an investment adviser formerly registered with the SEC.
According to the SEC's application and supporting papers, the SEC is investigating potential violations of the federal securities laws arising from the failure of Bantry Bay to produce required books and records in response to an examination of Bantry Bay conducted by the SEC examiners. The SEC's application alleges that when SEC examiners appeared at Bantry Bay's reported principal office and place of business in Jackson, Wyoming on November 16, 2015, they found a UPS Store at that location, but no investment advisory business. The application further alleges that after the SEC examiners sent repeated requests to Bantry Bay for copies of its books and records, Bantry Bay filed a Form ADV-W on December 22, 2015, to withdraw its registration as an investment adviser without responding to the requests for documents. In the Form ADV-W, Bantry Bay identified Sexton as the custodian of its books and records.
The SEC began an investigation to determine, among other things, if Bantry Bay kept and maintained books and records for its investment advisory business. As part of the SEC investigation, the staff in the SEC's Denver Regional Office served Sexton with a subpoena in May 2016, requiring the production of certain documents. Sexton did not respond to the subpoena.
The SEC's application sought an order from the federal district court compelling Sexton to comply with the SEC's subpoena by producing the documents. The federal district court issued an order requiring Sexton to appear at a hearing and provide any reasons why he should not be ordered to produce records to the SEC. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.