Hogwash!!
See SEC report!
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
REGIONAL OFFICE
5757 WILSHIRE BLVD., SUITE 300 EAST
LOS ANGELES, CALIFORNIA 90036-3648
February 8, 1989
Tristam B. Brown, Esq.
Lillick, McHose & Charles
Two Embarcadero Center, 26th Floor
San Francisco, CA 94111
Re: SEC v. Dynapac, Inc., et al. (LA-477)
SEC v. Faspaq, Inc., et al. (LA-543)
Dear Mr. Brown:
This concerns communications between the Commission's Los Angeles Regional Office ("LARO") and San Francisco Branch Office ("SFBO") and criminal law enforcement agencies regarding the role of your client Paul H. Metzinger in the above-referenced cases. Preliminarily, you should be aware of 17 C.F.R. § 202.5(f), which provides as follows:
“In the course of the Commission’s investigations, civil lawsuits, and administrative proceedings, the staff, with appropriate authorization, may discuss with persons involved the disposition of such matters by consent, by settlement, or in some other manner. It is the policy of the Commission, however, that the disposition of any such matter may not, expressly or impliedly, extend to any criminal charges that have been, or may be, brought against any such person or any recommendation with respect thereto. Accordingly, any person involved in an enforcement matter before the Commission who consents, or agrees to consent, to any judgment or order does so solely for the purpose of resolving the claims against him in that investigative, civil, or administrative matter and not for the purpose of resolving any criminal charges that have been, or might be, brought against him. This policy reflects the fact that neither the Commission nor its staff has the authority or responsibility for instituting, conducting, settling, or otherwise disposing of criminal proceedings. That authority and responsibility are vested in the Attorney General and representatives of the Department of Justice.”
Tristam B. Brown, Esq.
February 8, 1989
page two
With the foregoing in mind, I am advising you that, based on the staff's current knowledge of the facts of the above-referenced cases and Mr. Metzinger's role therein, the LARO and SFBO do not plan to initiate a criminal referral with respect to Mr. Metzinger. The LARO and SFBO will, however, fully honor any appropriate requests for information concerning Mr. Metzinger and any instructions from the Commission or the Commission's Home Office to initiate a criminal referral concerning Mr. Metzinger. The LARO and SFBO may also reevaluate the need to discuss Mr. Metzinger's activities with criminal law enforcement agencies should additional information be brought to our attention.
Because of the above-stated policy, the foregoing must in no way be construed as indicating that Mr. Metzinger has been exonerated from criminal liability or that he will never be the subject of criminal proceedings arising from his involvement in the above-referenced cases. The attempted use of this letter as a purported defense by Mr. Metzinger in any subsequent action or proceeding would therefore be inappropriate since this letter merely states the LARO's and SFBO's decision not to initiate a criminal referral concerning Mr. Metzinger based on the present investigatory and litigation record.
Very truly yours,
Irving M. Einhorn
Regional Administrator |
