FOR IMMEDIATE RELEASE                             2001-138


              SEC BARS RECIDIVIST TAMPA BROKER


     Washington, DC, November 16, 2001 – The Securities and
Exchange Commission today announced that it had barred a
former broker and investment adviser, with a history of
violating the securities laws, from association with any
broker, dealer, or investment adviser, and prohibited him
from, among other things, employment with a registered
investment company.  On November 6, 2001, the United States
Attorney’s Office for the Middle District of Florida
unsealed an indictment against the same individual, charging
him with seven counts of wire fraud and 13 counts of mail
fraud.  The indictment arises from the same conduct that was
the basis for the SEC’s actions.
     
     The SEC’s administrative Order against Tampa, Florida-
based Steven H. Adler, arises from allegations that between
October 1994 and September 1998, Adler fraudulently
misappropriated $1,995,600 from 11 investors in a purported
“market-timing” program.  The SEC found that Adler
fraudulently promised the investors that he would use their
money to buy and sell shares of ASM Fund (“ASM”), which was
at that time a Tampa-based mutual fund of which Adler was
President and Chairman of the Board.

     Adler told investors that he would maintain “market
timing” accounts through the registered investment adviser
of which Adler was also President, and that he would
maximize investor returns by correlating the purchase and
sale transactions to fluctuations in the market.  In
contrast to Adler’s representations to investors, the SEC
found that he stole their money to pay for the expenses of
his investment advisory company and for his own expenses.
The SEC also found that Adler prepared, and furnished to the
investors, fictitious monthly statements purportedly
reflecting gains in their “market-timing” accounts.

     “As this case illustrates, the SEC’s enforcement
program will quickly act to stamp out recidivism,” said
David Nelson, Director of the Commission’s Southeast
Regional Office.  “Our mission is clear:  we can, and will,
impose significant sanctions on those who take advantage of
investors, and will seek criminal prosecutions, especially
for those who are two- or three-time offenders.”

     Adler previously consented to a 1996 SEC order that
required him to cease-and-desist from violating Section
17(a)(3) of the Investment Company Act of 1940.  That
section restricts borrowing from registered investment
companies.  The SEC’s 1996 order found that Adler’s
investment advisory company had illegally borrowed money
from ASM and that Adler had aided and abetted and caused his
advisory company’s violation.

     The Commission instituted its more recent proceedings
against Adler on July 18, 2000.  Adler settled the
proceedings on November 15, 2001, without admitting or
denying the SEC’s findings, and consented to the SEC’s Order
requiring him to cease and desist from committing or causing
violations of 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 Sections 204, 206(1), 206(2) and
206(4) of the Investment Advisers Act of 1940 and Rules 204-
2(a)(8), 204-2(a)(10) and 206(4)-2, thereunder.

     In addition, the November 15, 2001 Order bars Adler
from associating with any broker, dealer or investment
adviser, and from affiliating, in certain specified
capacities, with any investment company.  The Order also
directs Adler to disgorge $1,995,600, plus prejudgment
interest, but waives payment of the disgorgement amount and
interest based upon Adler’s demonstrated inability to pay.
     
     The Commission thanks the U.S. Attorney’s office and
the FBI for their partnership in pursuing this case.
     
     
     
     
     
     
     
     
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