SEC Open Meeting Agenda
|Item 1:||Monetta Financial Services, Inc., Robert S. Bacarella, and Richard D. Russo|
Office: Office of the General Counsel
Staff: Anne E. Chafer, Joan L. Loizeaux, Gary R. Allen
The Commission will hear oral argument on an appeal by Monetta Financial Services, Inc. ("MFS"), a registered investment adviser, Robert S. Bacarella, the president and a director of MFS, and Richard D. Russo, an independent trustee of the Monetta Trust, from an administrative law judge's initial decision.
The law judge found that Respondents violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The law judge further found that Bacarella aided, abetted, and was the cause of MFS' willful violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The law judge ordered Respondents to cease and desist from these violations; suspended Bacarella from association with any investment adviser or registered investment company for ninety days, and fined him $100,000; suspended Russo from association with any registered investment company for thirty days, fined him $25,000, and ordered him to pay disgorgement of $28,823, plus prejudgment interest; and censured MFS, and fined the firm $200,000.
The Commission will consider the following issues:
(1) Whether Respondents committed the alleged violations;
(2) Whether Robert S. Bacarella aided, abetted, or was a cause of MFS' violations of Section 206 of the Investment Advisers Act of 1940; and
(3) If so, whether sanctions are appropriate and in the public interest.
For further information, please contact Gary R. Allen at (202) 942-0929.
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