SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17263 / December 7, 2001
SUMMARY JUDGMENT ENTERED AGAINST PRESIDENT OF 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 November 13, 2001, the Honorable John G. Koeltl, United States District Judge for the Southern District of New York, entered summary judgment against William F. Branston ("Branston") of Tandem Management Inc. ("Tandem") in a civil injunctive action filed by the Commission on October 2, 1995 against Tandem, and its principals, Branston, Eugene B. Deveney ("Deveney"), and Peter S. Alsop ("Alsop"). At the time the Commission filed its complaint, Tandem was a registered investment adviser and Branston was Tandem's President and Chief Investment Officer. The Commission alleged that Branston misappropriated over $1 million in client assets, principally in the form of "soft dollar" credits and commission rebates; distributed false information concerning Branston's past performance returns and 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; and failed to keep required books and records. The judgment permanently enjoined Branston 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. On September 24, 1999, Branston was criminally convicted of a 16 count indictment based upon the same facts in the Commission's civil injunctive action and is currently serving a term of 37 months imprisonment. The Court previously entered a final judgment on consent against defendant Alsop on August 18, 1997 and a default judgment against defendant Tandem on May 11, 2001. This case, which had been suspended without prejudice due to Branston's criminal proceedings, was restored to the active docket in January 2001 and is pending against remaining defendant Deveney.
See Lit. Rel. Nos. 14670, 15447, 17006.