Hedge Fund Focus

In the Matter of Stephen J. Glantz

On February 10, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) against Stephen J. Glantz. The Order finds that from January 2003 through November 2005, Glantz was a registered representative associated with Ferris Baker Watts, Inc., a broker-dealer and investment adviser registered with the Commission which maintained offices in various states, including Ohio and Maryland.

The Order finds that on Sept. 26, 2007, Glantz pled guilty to one count of securities fraud in violation of Title 15 United States Code, Sections 78j(b) and 78ff, and one count of making false statements, Title 18 United States Code, Section 1001, before the United States District Court for the Northern District of Ohio, in United States v. Stephen J. Glantz, Case No. 1:07-CR-464. The Order also finds that on Dec. 21, 2007, a judgment in the criminal case was entered against Glantz and he was sentenced to a prison term of 33 months followed by three years of supervised release and ordered to pay restitution in the amount of $110,336.31. The Order further finds that the counts of the criminal information to which Glantz pled guilty alleged, among other things, that Glantz defrauded investors and obtained money and property by engaging in manipulative and deceptive trading activity, and that in connection with that trading activity made use of a national securities exchange, and that Glantz made false statements to federal government agents.

Based on the above, the Order bars Glantz from association with any broker, dealer, or investment adviser. Glantz consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the Commission’s jurisdiction over him and the subject matter of the proceedings and his guilty plea and the criminal judgment against him, which he admitted. (Rel. 34-59373; IA-2838; File No. 3-13365)