U.S. Securities and Exchange Commission
Litigation Release No. 18334 / September 9, 2003
Securities and Exchange Commission v. Alan Brian Bond, Robert I. Spruill and Albriond Capital Management, LLC, Civil Action No. 99-12092 (S.D.N.Y.)
United States v. Robert I. Spruill, Crim. Case No. 99 CR 1239 (S.D.N.Y.)
Commission Settles With Former Registered Representative Robert I. Spruill
The Securities and Exchange Commission announced today that it settled fraud charges against former registered representative Robert I. Spruill. The Commission filed a complaint against Spruill on December 16, 1999, alleging that he participated in a commission kickback scheme perpetrated by Alan Brian Bond, the then principal of a registered investment adviser. The Commission's complaint alleged that Bond received over $6.9 million in commission kickbacks from three brokerage firms with which Spruill was associated. The Commission's action against Bond is continuing.
Spruill, without admitting or denying the Commission's allegations, consented to the entry of a judgment permanently enjoining him from future violations of the antifraud provisions of the federal securities laws, specifically Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and (2) of the Investment Advisers Act of 1940. The judgment also orders Spruill to pay disgorgement and civil penalties in amounts to be determined at a later date.
The Commission also instituted and simultaneously settled an administrative proceeding against Spruill. Spruill, without admitting or denying the Commission's findings, consented to an order barring him from association with any broker or dealer. The order was based on the entry of the permanent injunction in the related civil action against Spruill.
In a related criminal action, Spruill pled guilty in the U.S. District Court for the Southern District of New York on May 31, 2000 to one count of conspiracy and one count of commercial bribery relating to the kickback scheme. On May 6, 2003, Spruill was sentenced, based on his guilty plea, to a prison term of four months, and, on July 3, 2003, Spruill was ordered to pay $5.8 million in restitution to the victims of the scheme.