Violations Alleged
•
Sec 17(a) (Not specified)
•
Section 15(b)(6) Exchange Act; Sections 206(1), 206(2), 207 Advisers Act; 15(c), 17(e)(1), 34(b) Investment Company Act
Additionally,
Value Line Securities, Inc. is alleged to have aided and abetted Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act (willfully/knowingly).
Value Line Securities, Inc. is alleged to have caused Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act.
David Henigson is alleged to have aided and abetted Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act (willfully/knowingly).
David Henigson is alleged to have caused Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act.
Jean Bernhard Buttner is alleged to have aided and abetted Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act (willfully/knowingly).
Jean Bernhard Buttner is alleged to have caused Value Line, Inc.'s violation of Section 206(1), 206(2) Advisers Act.
Related Documents:
33-9081
04-Nov-2009
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of The Securities Act of 1933, Sections 15(b)(4), 15(b)(6) and 21C of The Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of The Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of The Investment Company Act of 1940
On November 4, 2009, the SEC instituted a settled administrative proceeding against Value Line, Inc., Value Line Securities, Inc., Jean Bernhard Buttner, and David Henigson. According to the SEC from 1986 to November 2004, the defendants: "engaged in a fraudulent practice that misappropriated assets from the Value Line Family of Mutual Funds (the 'Funds') in the form of inflated brokerage commission payments to VLS, VLI's affiliated broker-dealer."
2009-234
04-Nov-2009
Press Release--Administrative Proceeding
SEC Sues Value Line Inc. and Two Senior Officers for $24 Million Fraudulent Scheme
On November 4, 2009, the SEC announced that it charged New York City-based investment adviser Value Line Inc. ("Value Line"), its CEO Jean Buttner, its former Chief Compliance Officer David Henigson, and its affiliated broker-dealer Value Line Securities, Inc. ("VLS") with defrauding the Value Line family of mutual funds by charging over $24 million in bogus brokerage commissions on mutual fund trades funneled through VLS. Without admitting or denying the SEC's allegations, Value Line, Buttner, Henigson, and VLS agreed to settle the charges by consenting to the entry of a cease-and-desist order that also requires total payments of nearly $45 million in monetary remedies, including civil penalties. The SEC's order also imposes industry and officer and director bars and other relief.
34-61045
20-Nov-2009
Administrative Proceeding
Order Appointing Tax Administrator
On November 20, 2009, the SEC appointed Damasco and Associates LLP as tax administrator.
34-61316
08-Jan-2010
Administrative Proceeding
Extension Order
On January 8, 2010, the SEC granted the Division of Enforcement's request for an extension of time, until September 30, 2010, to submit a proposed Plan of Distribution.
34-62837
02-Sep-2010
Administrative Proceeding
Order Appointing a Fund Administrator and Waiving Bond
On September 2, 2010, the SEC issued an order appointing A.B. Data as Fund Administrator, and waiving the bond requirement for good cause shown.
33-9156
02-Nov-2010
Administrative Proceeding
Order Modifying Order Instituting Proceedings Extending Period of Time for Respondent Jean Bernhard Buttner to Comply with Associational Bars
This November 2, 2010 Order modifies a previous Order that was filed in 2009. In the original Order, "the Commission found that Respondents violated, or aided and abetted and caused violations of, the anti-fraud and other provisions of the federal securities laws in misappropriating assets from mutual funds that VLI managed." As a part of the original Order, VLI and the former CEO had one year to completely disassociate. This Order grants an extension of an additional month for the disassociation.
34-63269
08-Nov-2010
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
On November 8, 2010, the SEC filed a notice that the Division of Enforcement had submitted a proposed plan of distribution. This distribution plan provided for the distribution of a portion of the Fair Fund, which was created for the disgorgement, penalty and interest Value Line, Inc. was required to pay. The proposed plan provided for the distribution to certain injured shareholders of Value Line mutual funds.
Proposed Plan of Distribution
This proposed plan of distribution sets out the Division of Enforcement's plan to allocate fair funds paid by Value Line, Inc. to the Commission. These funds, which represent disgorgement, civil penalties and pre-judgment interest, are the result of numerous violations of the Securities Act, Exchange Act, Investment Adviser's Act and Investment Company Act. The proposed plan involves an Administrator and sets out terms for identification and notice of potential claimants, the claims process, calculation of the disbursement amounts, procedures for distributing, and termination.
34-63640
04-Jan-2011
Administrative Proceeding
Order Approving Distribution Plan
On January 4, 2011 the SEC issued an Order Approving Distribution Plan.
Final Plan of Distribution
On January 4, 2011, the Final Plan of Distribution in this matter was announced.
34-69469
26-Apr-2013
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On April 26, 2013, the SEC issued an Order Directing Disbursement of Fair Fund. According the SEC: "the Commission staff shall transfer $21,053,635.14 of the Fair Fund to The Huntington National Bank, and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan."
34-79553
14-Dec-2016
Administrative Proceeding
Order Directing Disbursement of Fair Fund and Vacating Prior Order of Disbursement
On December 14, 2016, the SEC ordered that "the Order Directing Disbursement of Fair Fund dated April 26, 2013 in this matter is vacated, due to errors subsequently discovered in the validated payment file which was the basis of the April 2013 Disbursement Order", and ordered that "the Commission staff shall transfer $19,657,089.13 from the Fair Fund to The Huntington National Bank, and the Fund Administrator shall distribute such monies to investors."
Notice of Name Change of Appointed Tax Administrator
On June 30, 2017, the SEC announced a Name Change of Appointed Tax Administrator, and amended the Omnibus Order, beginning June 2017 and for calendar year 2018, to replace all references to Damasco with "Miller Kaplan Arase LLP which acquired Damasco & Associates LLP" in order to reflect Damasco's name change.
34-97949
19-Jul-2023
Administrative Proceeding
Order Authorizing the Transfer to the U.S. Treasury of the Remaining Funds and Any Funds Returned to the Fair Fund in the Future, Discharging the Fund Administrator, and Terminating the Fair Fund
The Commission ordered that: "A. the Fair Fund’s remaining funds and any funds returned to the Fair Fund in the future, shall be transferred to the U.S. Treasury . . . ; B. the Fund Administrator . . . is discharged; and C. the Fair Fund is terminated."
