7.17.2009 The SEC issued an order instituting administrative and cease-and-desist proceedings against Mary Beth Stevens, the former chief financial officer and chief compliance officer of investment adviser AA Capital Partners Inc. (AA Capital). The SEC alleges that Stevens aided and abetted the misappropriation of more than $23 million by AA Capital and its former president, John Orecchio. The SEC also alleges that Stevens falsely characterized the withdrawals in the monthly account statements she prepared and sent to AA Capital’s clients as “capital calls” for legitimate investments and that Stevens did not fulfill her responsibility as AA Capital’s chief financial officer to properly maintain the firm’s books and records and that Stevens’ failure to keep up-to-date books and records helped conceal Orecchio’s and AA Capital’s misappropriations from clients.
Click http://www.sec.gov/litigation/admin/2009/ia-2902.pdf to access the SEC release.
Click http://www.sec.gov/litigation/admin/2009/ia-2903.pdf to access the order issued against Paul W. Oliver, Jr., of AA Capital Partners, Inc., alleging that Oliver aided and abetted the misappropriation of more than $23 million by failing to disclose the misappropriations to AA Capital’s clients and by failing to take appropriate action to halt the misappropriations after he learned of them.