Movers & Shakers June 29, 2010
New business networking group forms in Cd'A
The Coeur d'Alene Business Meet-Up Referral Group is a new networking club that will meet each Tuesday at two times.
A morning session at 7:30 and another at noon will be held at Calypsos Coffee at 116 E. Lakeside Ave. beginning July 6.
The group is not limited to just one business per profession. It is open now but will eventually cap at three businesses per profession.
It is free with the exception of a dollar which goes into the pot for a drawing made each session. Whoever wins the drawing must be able to recall what another businessman stated as being the type of referral he was looking for. If he cannot recall, the pot cannot be claimed until the following week.
Each member gets a 30-second introduction "commercial" each meeting
They mingle with each other with the intent of getting to know each other's businesses better so that the referrals are exactly the type of customer they're seeking.
Information: Nels Jensen, 659-2726
SEC charges compliance officer with fraud
The Securities and Exchange Commission on Monday charged the former chief compliance officer of a Ketchum investment adviser with fraud for misappropriating $650,000 in investor funds.
According to the SEC, between 2007 and 2009 David D. Hepworth repeatedly misappropriated money from investors in a private investment fund managed by Interfund Capital Corp., an investment adviser which at the time managed $30 million in assets. The SEC found that between 2007 and 2009, Hepworth, currently of Swampscott, Mass., used fund assets to pay for a variety of personal expenses as well as unauthorized business expenses of Interfund. Without admitting or denying the charges, Hepworth has, among other things, agreed to be barred from working in the industry.
"The Chief Compliance Officer plays a crucial role in ensuring that a securities firm is serving the interests of its clients," said Marc J. Fagel, Director of the SEC's San Francisco Regional Office, which serves investors throughout the Pacific Northwest. "It is particularly disturbing when someone in this position of trust instead uses investor funds for his own personal benefit."
In an administrative order instituted today, the SEC found that Hepworth, who formed and managed Interfund with his wife, was able to carry out his fraud without discovery because the fund failed to provide account statements to investors, and its financial statements were not being audited. Further, instead of admitting to investors that the fund was performing poorly, Hepworth caused the fund to pay certain investors more than their accounts were actually worth when they redeemed fund shares, the SEC found. Hepworth instructed the fund's bookkeeper to secretly deduct the overpayments from the capital accounts of his family members who were also investors in the fund, thus in effect misappropriating funds from these investors. Hepworth was terminated in July 2009 after the fraud was discovered. He has since paid back investors for nearly all of their losses.
The SEC's order charges Hepworth with violations of the antifraud and investment-adviser custody provisions of the federal securities LLC. The SEC's order directs him to cease and desist from further violations of these provisions, bars him from association with any investment adviser, and prohibits him from working in certain capacities in the investment company industry. The SEC did not impose a financial penalty on Hepworth due to his financial condition.
If you have a new, relocated or expanded business, or announcement of events, promotions or awards, The Press wants to let our readers know. The service is free and items run Tuesday through Saturday. To get the word on the street on your movers and shakers, call city editor Bill Buley at 664-8176 Ext. 2016 or e-mail firstname.lastname@example.org.