7.2.2007

The SEC brought charges against Vincent Montagna (“Montagna”), barring Montagna from associating with an investment adviser.

The SEC found that since 1997, Montagna has been president and chief executive officer of Quantus Holdings Company Inc. (“Quantus”), an entity through which he managed Tiburon Asset Management LLC (“Tiburon Asset”), a domestic hedge fund. Since 2000, Montagna has also been president and chief executive officer of Tiburon Investment Management, Ltd. (“Tiburon Management”), an entity through which he managed Tiburon Partners, Ltd. (“Tiburon Partners”), an offshore hedge fund. The SEC further found that from at least October 2000 through February 2004, acting through Quantus and Tiburon Management, Montagna was acting as an investment adviser as defined by Section 202(a)(11) of the Advisers Act.

According to the SEC, Montagna pleaded guilty to one count of wire fraud before the United States District Court for the Southern District of New York. The count of the criminal indictment to which Montagna pleaded guilty alleged that, while acting as an investment adviser, Montagna caused a wire transfer to occur on January 22, 2003, for the purpose of executing a scheme and artifice to defraud. The alleged scheme and artifice involved Montagna's failure to disclose to investors in Tiburon Asset and Tiburon Partners side agreements into which he entered with certain companies in which Tiburon Asset and Tiburon Partners had invested, and these companies either issued stock to him or for his benefit, or paid for certain of his personal expenses.

Please click www.sec.gov/litigation/admin/2007/ia-2621.pdf to access the administrative order.