Hedge Fund Focus

Commission Halts Unregistered Activity By Pace Capital Group, LLC, Robert Cavallaro, Shawn May, and Courtney May

To halt the offer and sale of unregistered securities in Pennsylvania, the Pennsylvania Securities Commission issued a Summary Order to Cease and Desist against Pace Capital Group, LLC (Pace), an entity with an address in Eagleville, Pennsylvania and Robert Cavallaro (Cavallaro), Shawn May (S. May) and Courtney May (C. May) each founding members of Pace.

From in or about May 2007 to the present, Pace maintained a web site at www.pacecapitalgroup.com (Web Site) which contained offering materials (Materials) that solicit investors (Investors) to purchase an investment program (Program).

The Materials state that Pace is in the business of investing and managing Investor’s money in the Foreign Exchange Capital Markets (Forex); that pursuant to the Program, the Investor signs a Managed Account Agreement (MA Agreement) and a Limited Power of Attorney Agreement (LPOA); that pursuant to the MA Agreement, Investors open an investment account with an initial deposit, which is in turn managed by Pace; that Pace provides Investors with a choice of two Forex Currency Trading Systems (Systems); that each System is comprised of pre-existing technically formulated strategies of Forex trading; that each System is managed by an “advisor” for Pace (Advisor); and that pursuant to the LPOA Agreement, Investors assign their investment rights to an Advisor, which allows the Advisor to trade, invest, and manage the investments on the Investor’s behalf.

In or about May 2007, Pace offered for sale the Program to at least one Pennsylvania resident (PA Resident).

In or about May 2007, S. May e-mailed additional information (E-mail) to at least one PA Resident. The E-mail states that Pace will place an Investor’s money into a “PAMM”, i.e., percentage allocation account; that Pace will pool all the Investors’ funds and trade the funds as one investment in order to increase returns; and that Pace’s goal for returns on investments is 3% to 5% a month.

The Commission ordered the Respondent to stop offering or selling the Program in the Commonwealth of Pennsylvania, in violation of the Pennsylvania Securities Act of 1972, and in particular Section 201 thereof.

Any further solicitations or sales made by these respondents in Pennsylvania will constitute violations of the 1972 Act and the Commission’s Orders. Any person who is solicited by or has information about these respondents is asked to immediately notify the Pennsylvania Securities Commission by calling 800-600-0007, or, in Harrisburg: (717) 787-8062, in Pittsburgh: (412) 565-5083 or in Philadelphia: (215) 560-2088.

To view the full related press release, please visit:
https://www.secure.psc.state.pa.us/releases/Members/index.cfm?page=ReleaseDetail&id=852&ReleaseType=&ReleaseDate=&ReleaseYear=&Desc=pamm&Rescind=&CFID=262224&CFTOKEN=39538858f814c35f-B3B3ABE4-2B3A-77E0-84912861E66551DE&jsessionid=80303015081244260445156