Atlantic Asset Management, LLC
Case No. 15-cv-9764
The SEC filed a complaint against Atlantic Asset Management, LLC (“Atlantic”) on December 15, 2015, alleging that Atlantic had violated the antifraud provisions of the Investment Advisers Act of 1940 (“Advisers Act”), among other violations. The SEC alleged that Atlantic, a registered investment adviser, had invested over $40 million of its clients’ funds in bonds issued by the Wakpamni Lake Community Corporation in August 2014 and April 2015, without disclosing to those clients the numerous conflicts of interest inherent in the transactions as a result of the benefits that they conferred on Atlantic’s affiliates. See Complaint.
On December 21, 2015, the Court entered a consent Order on the SEC’s Application Granting Preliminary Injunction and Other Interim Relief, and named Marti P. Murray as Temporary Monitor. The Court amended its Preliminary Injunction Order on January 8, 2016, and appointed Marti P. Murray as Receiver for Atlantic. On January 26, 2016, the Court entered Judgment on consent against Atlantic, permanently enjoining Atlantic from further violations of Sections 206(1), (2) and (4) of the Advisers Act, 15 U.S.C. §§ 80b-6(1), (2), (4), and Rule 206(4)-8 thereunder, 17 C.F.R. § 275.206(4)-8.
On July 7, 2016, the Receiver and the SEC filed a Joint Motion to Approve a Proposed Plan of Distribution of the assets collected by the Receiver, together with the Plan of Distribution. On July 22, 2016, the Court directed the Receiver and the SEC to make certain revisions to the proposed Plan of Distribution. By letter, dated July 26, 2016, the SEC submitted to the Court an Amended Proposed Plan of Distribution. On August 2, 2016, the Court granted the Receiver’s and the SEC’s Joint Application for a Scheduling Order to set the times for (1) the SEC to send out Notice of the Receiver’s and SEC’s Amended Proposed Plan of Distribution to all claimants; (2) any Objections to the Amended Proposed Plan of Distribution to be submitted; (3) the Responses of the Receiver and the SEC to any such Objections; and (4) if Objections to the Amended Proposed Plan of Distribution are submitted, a date for a hearing to consider the Objections and to determine if approval of the Amended Proposed Plan of Distribution is appropriate. See Scheduling Order. See also Amended Proposed Plan of Distribution (which has been posted here without Exhibits to protect claimants’ privacy).
The SEC and the Receiver received Objections to the Joint Amended Plan of Distribution. On October 13, 2016, the SEC and the Receiver filed a Response to the Objection and Memorandum of Law in Support of their Revised Joint Plan of Distribution and requested the Court to approve the Revised Joint Plan of Distribution. See Proponents' Response to Objections and the Revised Joint Plan of Distribution (posted without Exhibits to protect claimants' privacy).
Persons to Contact:
Receiver:
Marti P. Murray, as Receiver
Murray Analytics, Inc.
590 Madison Avenue, 21st Floor
New York, NY 10022
mmurray@murrayanalytics.nyc
212.371.4829
SEC Counsel:
Nancy A. Brown, Esq.
United States Securities and Exchange Commission
00 Vesey Street, Suite 400
New York, NY 10281
brownn@sec.gov
212.336.1023