WEST PALM BEACH, FL (www.hedgeco.net) – The Securities and Exchange Commission has filed Securities fraud against Amerindo Investment Advisors, Inc., Alberto William Vilar and Gary Alan Tanaka,Amerindo�s co-founders and principals. According to the SEC the charges resulted from misappropriation of at least $5 million from an Amerindo client.
The SEC�s complaint �seeks disgorgement of the defendants� ill-gotten gains, civil penalties, and permanent injunctions from future violations of the antifraud provisions of the federal securities laws. In addition, upon emergency motion by the Commission, the court granted a preliminary injunction against Amerindo prohibiting it from future violations of the federal securities laws and appointed a temporary monitor over Amerindo. The SEC alleges, �that in approximately June 2002, Vilar solicited an Amerindo client and close personal friend to invest $5 million in the Amerindo Venture Fund LP, a limited partnership that was purportedly being organized to qualify and be operated as a Small Business Investment Company (SBIC). Shortly after the investor wired $5 million to a brokerage account as Amerindo had instructed, Tanaka began to transfer a portion of the investor�s funds to other accounts Vilar and Amerindo controlled.�
The Sec further alleges that after several days of the transfer, Tanaka began authorizing the transfer of $1.65 million to other accounts, and about $1 million was also transferred to personal account held in Vilar�s name.
Linda Chatman Thomsen, the Director of the Commission�s Division of Enforcement, said, �This case demonstrates the Commission has zero tolerance for fraud by a fiduciary.� The Director of the Commission�s Northeast Regional Office, Mark K. Schonfeld, said, �In light of recent events, we have sought to have someone appointed to monitor and review the activities of Amerindo, respond to client concerns, and ensure the safety of Amerindo client funds.�
The SEC charges that Amerido has violated �the antifraud provisions of the Securities Act of 1933, Securities Exchange Act of 1934, and the Investment Advisers Act of 1940.� Vilar and Tanaka were arrested on May 26, 2005. Their lawyers could not be reached for comments.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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