Paul J. Silvester et al. and Ben F. Andrews

The Securities and Exchange Commission announced today that, on October 29, 2003, Ben F. Andrews, a purported consultant for Landmark Partners, Inc., a Connecticut investment firm, was found guilty by a jury in a criminal trial prosecuted by the Connecticut United States Attorney, for his role in an alleged fraudulent scheme involving the former Connecticut State Treasurer's investment of state pension fund money with private equity firms, including Landmark, in exchange for the firms' agreement to pay lucrative fees to the Treasurer's friends and associates. The jury found Andrews guilty of various charges, including bribery concerning programs receiving federal funds, conspiracy to launder money, and mail and wire fraud concerning theft of honest services. Andrews is scheduled to be sentenced on January 16, 2004.

The criminal action was based on conduct similar to that alleged in a complaint filed by the Commission on October 10, 2000. The complaint alleged that, in return for investing $150 million of state pension funds with Landmark in 1998, the then Connecticut State Treasurer, Paul J. Silvester, solicited and Landmark agreed to pay $1.5 million in finder's fees to Andrews, a Silvester associate. The complaint further alleged that Andrews agreed to kick back part of the finder's fee to Silvester using another friend of Silvester, Christopher A. Stack, as an intermediary.

Silvester, Stack (and his entity, KCATS), Landmark and its chairman, Stanley F. Alfeld, and three other parties (Triumph Capital Group, Inc.; Frederick W. McCarthy; and Lisa A. Thiesfield) previously settled with the Commission in this matter. The Commission's case remains pending against three additional defendants: Andrews, Charles B. Spadoni; and Jerome L. Wilson. For further information, please see Litigation Release Numbers 18436 (October 30, 2003), 16834 (December 19, 2000), and 16759 (October 10, 2000).