SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16946 / March 29, 2001
UNITED STATES OF AMERICA V. MAURICIO A. GUTIERREZ. Criminal Action No. 301-CR-072-D
SECURITIES AND EXCHANGE COMMISSION v. SHARP CAPITAL, INC., ET AL. Civil Action No. 3-98-CV2792-G
MAURICIO GUTIERREZ, FORMER PRESIDENT OF INVESTMENT ADVISER SHARP CAPITAL, INDICTED FOR FRAUD
On March 6, 2001, Mauricio Gutierrez ("Gutierrez"), was indicted by a Dallas grand jury on 10 counts of fraud, including violations of the anti-fraud provisions of the Investment Advisers Act of 1940. Gutierrez was formerly president of Sharp Capital, Inc ("Sharp"), an investment adviser formerly registered with the Commission.
The indictment charged that Gutierrez defrauded Sharp's clients though false claims that:
Instead, the indictment charges that Gutierrez and Sharp invested client funds in high risk, speculative investments and also misappropriated client funds.
The indictment is based upon the same conduct alleged in the Commission's civil complaint against Gutierrez and Sharp, filed November 30, 2000. In the Commission's prior civil fraud action, Gutierrez and Sharp were enjoined from further violations of the securities laws, and subjected to an asset freeze and the appointment of a Special Master. In this action, the Commission alleged that Sharp and Gutierrez lost as much as $80 million of client funds in unauthorized, highly leveraged investments in speculative securities of volatile emerging markets, including Russian debt instruments. The Commission charged Gutierrez and Sharp with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities and Exchange Act of 1934, and Rule 10b-5 thereunder, as well as Section 206 of the Investment Advisers Act of 1940. Since the filing of the Commission's complaint in November 1998, the Commission has revoked Sharp's registration as an investment adviser and has barred Gutierrez from association with any investment adviser.
[Lit. Rel. 15988, November 30, 1998; Ad. Rel. No. 3-10218, June 8, 2000]