81 FR 6088 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 23 (February 4, 2016)

[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)]
[Notices]
[Page 6088]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02221]


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SECURITIES AND EXCHANGE COMMISSION


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, February 
8, 2016, 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 the Respondent, 
Bernerd Young (``Young''), former chief compliance officer of Stanford 
Group Company (``SGC''). The law judge found that Young was a cause of 
violations by SGC of the antifraud provisions of Section 206(2) of the 
Investment Advisers Act of 1940 through false and misleading statements 
and omissions in marketing materials for ``certificates of deposit'' 
issued by Stanford International Bank Ltd., an affiliate of SGC. In 
addition, the law judge found that Young violated Section 17(a) of the 
Securities Act of 1933 and Section 10(b) of the Securities Exchange Act 
of 1934 and Rule 10b-5 thereunder in connection with statements 
designed to ``attack'' concerns raised about the certificates of 
deposit and to ``forestall redemptions and continue sales.'' The law 
judge further found that Young aided and abetted and caused violations 
of Exchange Act Section 10(b) and Rule 10b-5, Exchange Act Section 
15(c)(1), and Advisers Act Sections 206(1) and (2) in connection with 
these misrepresentations and omissions.
    Based on her findings, the law judge issued a cease-and-desist 
order against Young; barred him from associating with a broker, dealer, 
investment adviser, municipal securities dealer, municipal advisor, 
transfer agent, or nationally recognized statistical rating 
organization; and prohibited him from serving or acting in certain 
capacities with respect to an investment company. The law judge also 
ordered Young to pay $591,992.46 in disgorgement, with prejudgment 
interest, and assessed a third-tier civil penalty of $260,000.
    Young appealed the law judge's findings of violation and the 
sanctions imposed. The issues likely to be considered at oral argument 
include, among other things, whether Young violated the antifraud 
provisions as alleged and, if so, the extent to which he should be 
sanctioned for those violations.
    For further information, please contact the Office of the Secretary 
at (202) 551-5400.

    Dated: February 1, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02221 Filed 2-2-16; 11:15 am]
 BILLING CODE 8011-01-P