Litigation Release No. 16206 / July 8, 1999
UNITED STATES OF AMERICA v. SANJAY SAXENA, Crininal No. 98cr10298-WGY (D. MA)
SECURITIES AND EXCHANGE COMMISSION v. SANJAY SAXENA, Civil Action No. 98cv11985-MEL (D. MA)
Barred Investment Adviser Sentenced to Prison and Required to
Pay Restitution and Fines
The Securities and Exchange Commission ("Commission") and the United States Attorney for the District of Massachusetts announced today that the Honorable William G. Young sentenced Sanjay Saxena ("Saxena"), of Cary, North Carolina, a former registered investment adviser and newsletter publisher, to thirty-three months in federal prison and three years of supervised release and ordered him to pay $13,616 in restitution, $100,000 fines and $1,600 in special assessments. Saxena's sentencing follows his guilty plea to 32 counts of securities and mail fraud, including sales of unregistered securities and prohibited transactions by an investment adviser.
T In a complaint filed in the United States District Court for the District of Massachusetts on December 7, 1994 arising out of same conduct, the Commission alleged that Saxena violated the antifraud and registration provisions of the federal securities laws. The Commission alleged that Saxena sold securities in the form of interests in an unregistered investment pool by promising exaggerated annual returns. While operating the investment pool, Saxena issued false monthly and quarterly statements indicating that investors were making money, when in fact the pool was incurring substantial losses. Saxena also used investor funds to repay other investors and provided false information to the Commission during its investigation. On February 25, 1995, Saxena consented to the entry of a final judgment of permanent injunction restraining him from further violations and an order to disgorge $703,000 (representing all monies owed to investors), and to pay prejudgment and postjudgment interest. On February 28, 1995, the Commission entered an order permanently barring Saxena from the securities industry.
T On September 18, 1998, the Commission filed a second civil injunctive action against Saxena and his wife Mumtaz Saxena. The complaint alleged that the Saxenas violated the antifraud and registration provisions of the federal securities laws, and that Saxena violated the Commission's February 28, 1995 order permanently barring him from the securities industry. The complaint alleges that Saxena's role in the formation and operation of an investment adviser and two investment companies violated the Commission's bar order, and that Saxena used his wife as a front to create the appearance that he had not violated the order. That action is pending in the United States District Court for the District of Massachusetts.
[For additional information, see prior Litigation Release Nos. 14348, 14419, 15589 and 15926].