Tuesday, March 8, 2005
The Securities Litigation Watch blog noticed (here--including the dialog from a great scene with Nicholas Cage in Raising Arizona, an all-time underrated movie) an SEC settlement on March 3 involving Richard DeBoe and one Peter N. Brant, who the SEC Litigation Release noted was a recidivist. Showing great recall, the author, Bruce Carton, remembered the name Peter Brant from the well-known Wall Street Journal "Heard on the Street" insider trading case that made its way to the Supreme Court (U.S. v. Carpenter), and asked whether it is the same person. The answer is: Yes. The SEC Complaint (Download brant_complaint.pdf ) describes the relationship between Brant and DeBoe as follows:
DeBoe and Brant worked together as registered representatives in the 1970’s at Kidder Peabody & Company, Inc. and remained social friends from that time through the events relevant to this Complaint. In 1984 Brant was convicted of felony securities fraud for insider trading and incarcerated. In a parallel civil action brought by the Commission, Brant was permanently enjoined from violating the antifraud provisions of the federal securities laws and permanently barred from the securities industry. DeBoe knew of Brant’s fraud conviction, and had contact with Brant during his incarceration, including visiting Brant during his incarceration at a halfway house.
In the current action, the SEC states that "Brant misappropriated client funds for his personal use, made unsuitable and unauthorized investment decisions, and traded in speculative stocks. The Complaint alleges that as a result of his fraud, Brant obtained at least $173,402.80 and caused his clients' accounts to drop dramatically in value." Brant (but not DeBoe) agreed to settle the case by paying disgorgement and a $3 million fine, plus a permanent bar from the securities industry. Is a second trip to jail around the corner, perhaps? It's always nice to see a "blast from the past" (in addition to recalling how enjoyable Raising Arizona is). (ph)