Open Meeting Agenda
|Item 1:||Dolphin and Bradbury, Incorporated and Robert J. Bradbury|
Office: Office of the General Counsel
Staff: Anne E. Chafer, Kermit Kennedy, Diane V. White, Jodie J. Turcotte
The Commission will hear oral argument on an appeal by Dolphin & Bradbury, Inc.
(“D & B”) and its part-owner and chairman, Robert J. Bradbury (together, “Respondents”), as well as the Division of Enforcement, from the decision of an administrative law judge. The law judge found that certain materials used by Respondents to market to investors long-term, non-taxable municipal bonds that were issued to finance the purchase of an office building and parking lot complex were materially misleading. D & B served as underwriter of the bond issue. The law judge found that, through their conduct in connection with the bond issue, Respondents willfully violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Municipal Securities Rulemaking Board Rule G-17, and that D & B willfully violated, and Bradbury willfully aided and abetted and caused D & B’s violation of, Exchange Act Section 15B(c)(1). The law judge ordered D & B and Bradbury to cease and desist from committing or causing violations of the provisions they were found to have violated; jointly and severally to disgorge $482,562.50, plus prejudgment interest; and to pay civil penalties of $400,000 and $82,000 respectively. The law judge rejected the Division’s request that he create a fund for the benefit of investors into which the disgorgement and civil penalties would be paid, which is the only aspect of the decision the Division has appealed.
Among the issues likely to be argued are whether Respondents violated antifraud provisions in offering and selling the bonds, and, if so, whether and to what extent sanctions should be imposed on Respondents.
For further information, please contact the Office of the Secretary at 202 551-5400.
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