Tandem Management Inc., William F. Branston, Eugene B. Deveney, and Peter S. Alsop

LITIGATION RELEASE NO. LR 17380 / February 25, 2002

FINAL JUDGMENT ENTERED AGAINST FORMER MANAGING DIRECTOR OF INVESTMENT ADVISER

SECURITIES AND EXCHANGE COMMISSION V. TANDEM MANAGEMENT INC., WILLIAM F. BRANSTON, EUGENE B. DEVENEY, AND PETER S. ALSOP, 95-CIV-8411 (S.D.N.Y.)

The Securities and Exchange Commission announced that on February 8, 2002, the Honorable Judge John G. Koeltl, United States District Judge for the Southern District of New York, entered a Final Judgment on consent against Eugene B. Deveney ("Deveney") in connection with a civil injunctive action filed by the Commission on October 2, 1995 against Tandem Management Inc. ("Tandem") and its principals Deveney, William F. Branston ("Branston"), and Peter S. Alsop ("Alsop"). At the time the Complaint was filed, Tandem was a registered investment adviser. The Commission alleged that Tandem, Deveney, Branston and Alsop misappropriated over $1 million in Tandem's client assets, principally in the form of "soft dollar" credits and commission rebates; distributed false information concerning Tandem's performance returns and assets under management to clients, investors in a limited partnership fund advised by Tandem, and a national money management ranking publication; filed false Forms ADV; failed to make required disclosures concerning Tandem's financial condition; and failed to keep required books and records. The Judgment, to which Deveney consented on a neither admit nor deny basis, permanently enjoined Deveney from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Sections 204, 206(1), 206(2), 206(4) of the Investment Advisers Act of 1940, and Rules 204-2, 206(4)-1, and 206(4)-4 thereunder. The Final Judgment also orders payment of $139,048.54 in disgorgement plus prejudgment interest but waives payment based upon Deveney's financial statement. The Court previously entered a Final Judgment on consent against defendant Alsop on August 18, 1997. This case, which had been suspended without prejudice due to related criminal proceedings, was restored to the active docket in January 2001 and thereafter the Court entered a default judgment against defendant Tandem on May 16, 2001 and summary judgment against defendant Branston on November 13, 2001.

See Lit. Rel. Nos. 14670, 15447, 17006 and 17263.