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SEC judge bars fund manager over fraud, registration violations

Jan 02 2013 Stuart Gittleman, Compliance Complete

A Securities and Exchange Commission administrative law judge this week imposed the full gamut of industry bars under the Dodd-Frank act against a hedge fund manager over a variety of securities law violations. Dodd-Frank expanded the SEC's oversight to include the municipal-advisor and credit-rating sectors, but administrative law judges have not to date imposed so-called collateral bars against working in these sectors as a consequence of conduct that ended before July 22, 2010, the act's effective date. In a decision on Monday barring hedge fund manager Peter Siris from all activities under its jurisdiction, ALJ Carol Fox Foelak found that Siris's misconduct continued past the statute's effective date. But a decision by the SEC last month opens the door for judges to impose bans for conduct that occurred only before Dodd-Frank took effect. The commission in a 3-2 decision issued on December 13 imposed these bars against John W. Lawton in connection with violations at an investment

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