Litigation Release No. 17560 / June 12, 2002
United States v. Alan Bond, 01-CR-1140 (S.D.N.Y.)
On June 10, 2002, former money manager Alan Bond (Bond) was convicted of six counts of federal criminal investment adviser fraud and wire fraud. Bond's conviction related to a "cherry picking" scheme in which Bond illegally allocated profitable trades to his own personal account and allocated the vast majority of unprofitable trades into client accounts that he managed through his money management firm, Albriond Capital Management, LLC (Albriond). As a result of this scheme, Bond's clients lost nearly $54 million, while Bond gained approximately $5.5 million, an investment return of over 5,000%. Bond, who faces nine to eleven years in prison, was indicted on December 7, 2001, by the United States Attorney's Office for the Southern District of New York for his fraudulent cherry picking scheme. Bond had previously been indicted and sued by the Securities and Exchange Commission (Commission) in December 1999 on a different scheme in which Bond received millions of dollars in brokerage commission kickbacks. The Commission is seeking permanent injunctions and civil money penalties against Bond and Albriond, and disgorgement from Bond. [Securities and Exchange Commission v. Alan Brian Bond, Robert I. Spruill and Albriond Capital Management, LLC, Civil Action No. 99 Civ. 12092 (RO) (S.D.N.Y.)]
For additional information, see Litigation Release Nos. 17099 (August 10, 2001) and 16394 (December 16, 1999).