Defendant Name: Instinet, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Nomura Holdings, Inc.
SIC Code: 6211
CUSIP: 65535H20

Initial Case Details

Legal Case Name In the Matter of Instinet, LLC
First Document Date 26-Dec-2013
Initial Filing Format Administrative Action
File Number 3-15663
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Related Violations Alleged

Instinet, LLC is alleged to have aided and abetted J.S. Oliver Capital Management, L.P.'s violation of Section 206(2), 206(4), Rule 206(4)-8 Investment Advisers Act (willfully/knowingly).
Instinet, LLC is alleged to have caused J.S. Oliver Capital Management, L.P.'s violation of Section 206(2), 206(4), Rule 206(4)-8 Investment Advisers Act.

Resolutions

First Resolution Date 26-Dec-2013
Headline Total Penalty and Disgorgement $813,281

Related Documents:

34-71191 26-Dec-2013 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
According to the SEC: "From January 2009 through July 2010, Instinet paid approximately $430,000 in client commission credits called 'soft dollars' as requested by its customer, J.S. Oliver Capital Management, L.P. ('JS Oliver'), a San Diego-based investment adviser, for expenses that JS Oliver had not properly disclosed to its clients. The improper payments included $329,365 to the ex-wife of JS Oliver's president, Ian O. Mausner; thirteen months of increased rent payments totaling $65,000 for JS Oliver's offices at Mausner's home; and two payments totaling $40,094.54 for upkeep on Mausner's New York City timeshare."
2013-273 26-Dec-2013 Press Release--Administrative Proceeding
SEC Charges New York-Based Brokerage Firm for Ignoring Red Flags in Soft Dollar Scheme
On December 26, 2013, the SEC announced, "sanctions against a New York-based brokerage firm for ignoring red flags and paying more than $400,000 in soft dollars for expenses that an investment adviser had not properly disclosed to clients."

Related Actions:

In the Matter of J.S. Oliver Capital Management, L.P., Ian O. Mausner, and Douglas F. Drennan
J.S. Oliver Capital Management, L.P.
Ian O. Mausner
Douglas F. Drennan