SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. LR-17006 / May 16, 2001
DEFAULT JUDGMENT ENTERED AGAINST INVESTMENT ADVISER
SECURITIES AND EXCHANGE COMMISSION V. TANDEM MANAGEMENT INC., WILLIAM F. BRANSTON, EUGENE B. DEVENEY, AND PETER S. ALSOP, 95-CIV-8411 (S.D.N.Y.)
The Securities and Exchange Commission announced that, on May 11, 2001, the Honorable John G. Koeltl, United States District Judge for the Southern District of New York, entered a Default against Tandem Management Inc. ("Tandem") in connection with a civil injunctive action filed by the Commission on October 2, 1995 against Tandem and its principals William F. Branston, Eugene B. Deveney, and Peter S. Alsop. At the time the Complaint was filed, Tandem was a registered investment adviser. The Commission alleged that Tandem and its principals misappropriated over $1 million in client assets, principally in the form of "soft dollar" credits and commission rebates; distributed false information concerning Tandem's performance returns and assets under management to clients, investors in a limited partnership fund advised by Tandem, and a national money management ranking publication; filed false Forms ADV; failed to make required disclosures concerning Tandem's financial condition; and failed to keep required books and records. The Judgment permanently enjoined Tandem from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Sections 204, 206(1), 206(2), 206(4), and 207 of the Investment Advisers Act of 1940, and Rules 204-2, 206(4)-1, and 206(4)-4 thereunder. The Court previously entered a Final Judgment on consent against defendant Alsop on August 18, 1997. This case, which had been suspended without prejudice due to related criminal proceedings, was restored to the active docket in January 2001 and is pending against remaining defendants Branston and Deveney.
See Lit Rel. Nos. 14670, 15447.http://www.sec.gov/litigation/litreleases/lr17006.htm