12.18.2009 An Administrative Law Judge issued an Initial Decision against James C. Dawson, barring him from associating with any investment adviser. From 2003 through 2005, Dawson was the sole general partner of, and investment adviser to, Victoria Investors, L.P., an unregistered hedge fund and limited partnership with assets of approximately $13 million, and approximately 20 individual and institutional investors. During that time period, Dawson secretly allocated profitable trades to his personal account and unprofitable trades to investors in Victoria Investors. On July 24, 2009, the U.S. District Court for the Southern District of New York enjoined Dawson from future violations of federal securities laws and ordered him to disgorge $303,472, plus pre-judgment interest of $102,975; and ordered him to pay a $100,000 civil penalty.

Click http://www.sec.gov/litigation/aljdec/2009/id392bpm.pdf to access the initial decision.