Several years ago, Bob Gintel, manager of the Gintel Fund and a very generous and gracious man, was an occasional contributor to this thread. Back in summer 1998, he hosted a memorable get-together at his fabulous Florida home where a couple dozen of us SI Checkmonkeys were able to personally meet CEO Pete Kight as well as each other. It was a wonderful time had by all.
Anyway, shortly after that, Gintel seemingly disappeared...from any public view, anyway. As for me, I had no idea what became of him or his sizable investment in CKFR.
This past week I saw a news item that really shook me...I don't think I've seen anything on the thread about this, even though the news is apparently a year old. Any comments?
From the SEC Digest...
SEC INSTITUTES SETTLED ADMINISTRATIVE PROCEEDING AGAINST GINTEL ASSET
MANAGEMENT, INC., GINTEL & CO., AND THEIR TWO TOP OFFICERS FOR EFFECTING
AFFILIATED TRANSACTIONS AND OTHER VIOLATIONS
On Nov. 8, the Commission instituted and simultaneously settled public
administrative and cease-and-desist proceedings against Gintel Asset
Management, Inc.; Gintel & Co. LLC; Robert M. Gintel, the firms' chief
executive officer; and Stephen G. Stavrides, the firms' president. The
Commission's Order found multiple violations of the Investment Advisers
Act of 1940 (Advisers Act) and the Investment Company Act of 1940
(Investment Company Act) that arose primarily from cross trading between
client accounts on a principal basis by Gintel Asset Management, Inc., a
registered investment adviser.
The Order found that in the period 1997 to 1999, Robert Gintel, acting
as Gintel Asset Management's portfolio manager, effected at least 40
cross trades on a principal basis between an investment company, the
Gintel Fund, and accounts in which he had an ownership interest in
violation of the Investment Company Act's provision prohibiting trades
between a registered mutual fund and affiliated accounts. In addition,
the Order found that Gintel Asset Management engaged in prohibited
principal transactions and that those principal transactions rendered
false a number of statements to clients and prospective clients
representing that the companies did not engage in any affiliated or
principal transactions. Stephen Stavrides, the firm's president and
compliance officer, prepared and signed the filings containing the false
statements.
The Order found that in addition to these prohibited cross transactions,
Robert Gintel engaged in extensive personal trading in securities,
frequently within seven days of trades in the same securities by the
Gintel Fund and other clients, in violation of the Gintel Fund and
Gintel Asset Management's Code of Ethics. According to the Order,
Stavrides, the compliance officer for Gintel Asset Management and the
Gintel Fund, failed to apply the Code of Ethics' black-out periods for
personal trading to Robert Gintel. Finally the Order found that Gintel
Asset Management and Gintel & Co., its affiliated broker-dealer, also
failed to establish, maintain, and enforce procedures reasonably
designed to ensure that material nonpublic information was not misused.
Each of the Respondents agreed to settle the charges, without admitting
or denying the Commission's findings. The Commission's Order censures
each of the Respondents and orders them to pay civil penalties in the
following amounts: Gintel Asset Management, $100,000; Gintel & Co.,
$75,000; Robert Gintel, $75,000; and Stavrides, $25,000. The Order also
orders Robert Gintel to pay disgorgement to clients of $489,239.08 and
$169,619.83 in prejudgment interest and suspends him from association
with any investment adviser, broker-dealer, or registered investment
company for a period of six months. The Order prohibits Gintel Asset
Management from soliciting or accepting new advisory clients for one
year after entry of the Order and orders Gintel Asset Management and
Gintel & Co. to comply with undertakings that include hiring an
independent consultant to review their compliance procedures. Finally,
the Order orders Gintel Asset Management to cease and desist from
violating Sections 204A, 206(1), 206(2), 206(3) and 207 of the Advisers
Act, and Sections 17(a)(1), 17(a)(2) and 17(j) of the Investment Company
Act and Rule 17j-1(c)(2) thereunder; Gintel & Co. to cease and desist
from violating Section 15(f) of the Securities Exchange Act of 1934
(Exchange Act) and Sections 17(a)(1) and 17(a)(2) of the Investment
Company Act; Robert Gintel to cease and desist from violating or causing
any violations of Sections 204A, 206(1), 206(2), and 206(3) of the
Advisers Act; Sections 17(a)(1), 17(a)(2) and 17(j) of the Investment
Company Act and Rule 17j-1(c) thereunder; and Section 15(f) of the
Exchange Act; and Stavrides to cease and desist from violating or
causing any violations of Sections 206(2) and 207 of the Advisers Act;
and Sections 17(j) and 34(b) of the Investment Company Act; and Rule 17j-
1(c)(2) thereunder. (Rels. IA-2079; IC-25798; 34-46798; File No. 3-
10930) |
