80 FR 64038 - Sunshine Act Meeting


Federal Register Volume 80, Issue 204 (October 22, 2015)

Page Range64038-64038
FR Document2015-26972

Federal Register, Volume 80 Issue 204 (Thursday, October 22, 2015)
[Federal Register Volume 80, Number 204 (Thursday, October 22, 2015)]
[Page 64038]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26972]



Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission will hold an Open Meeting on Monday, October 
26, 2015, at 1:00 p.m., in the Auditorium (L-002) at the Commission's 
headquarters building, to hear oral argument in an appeal from an 
initial decision of an administrative law judge by Respondents ZPR 
Investment Management, Inc. (``ZPRIM''), and Max E. Zavanelli 
    On May 27, 2014, the law judge found that ZPRIM violated Sections 
206(1), (2), and (4) of the Investment Advisers Act of 1940 and 
Advisers Act Rule 206(4)-1(a)(5), by misrepresenting compliance with 
the Global Investment Performance Standards (``GIPS'') in magazine 
advertisements and investment report newsletters. The initial decision 
also found that Zavanelli aided, abetted, and caused, and was primarily 
liable under Sections 206(1) and (2) for, each of ZPRIM's violations 
based on these misrepresentations.
    In addition, the law judge found that ZPRIM violated Sections 
206(2) and (4) and Rule 206(4)-1(a)(5) by negligently claiming in a 
Morningstar report for the period ended September 30, 2010 that (a) an 
independent third party had verified ZPRIM's compliance with GIPS ``to 
the present,'' and (b) ZPRIM was not under Commission investigation, 
although neither of these things was true. The law judge also found 
that ZPRIM violated Sections 206(1), (2), and (4) and Rule 206(4)-
1(a)(5) by repeating its false claim that it was not under Commission 
investigation in a Morningstar report for the period ended March 31, 
2011. The initial decision found that Zavanelli caused each of ZPRIM's 
Morningstar violations but did not aid and abet them.
    For these violations, the law judge barred Zavanelli from 
association with any investment adviser, broker, dealer, municipal 
securities dealer, municipal advisor, transfer agent, or nationally 
recognized statistical rating organization; ordered ZPRIM to cease and 
desist from committing, and Zavanelli to cease and desist from 
committing, aiding, abetting, or causing the commission of, any 
violations or future violations of Advisers Act Sections 206(1), (2), 
and (4) and Rule 206(4)-1(a)(5); and imposed civil money penalties of 
$250,000 on ZPRIM and $660,000 on Zavanelli.
    Respondents appealed the initial decision's findings of violation 
and the sanctions imposed. The issues likely to be considered at oral 
argument include, among other things, whether Respondents violated the 
antifraud provisions as alleged and, if so, what sanction, if any, is 
appropriate in the public interest.
    For further information, please contact the Office of the Secretary 
at (202) 551-5400.

    Dated: October 19, 2015.
Brent J. Fields,
[FR Doc. 2015-26972 Filed 10-20-15; 11:15 am]

Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
FR Citation80 FR 64038 

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