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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (65207)	12/28/2000 1:40:24 PM
From: Pravda	Read Replies (2) \| Respond to of 122087

Why is NUAN up 9 off the end of lockup? Does this thread have ideas? Pravda

To: Anthony@Pacific who wrote (65207)	12/28/2000 2:11:05 PM
From: StockDung	Respond to of 122087

Kohn Investment's Evelyn Litwok Accused of Stealing $3 Million New York, Dec. 28 (Bloomberg) -- Kohn Investment Management Inc. principal Evelyn Litwok has been accused by the Securities and Exchange Commission of stealing $3 million from clients and losing another $5 million through speculative trading in options. The SEC has filed civil charges alleging that Litwok, an unregistered investment advisor, raised more than $8 million from 35 people between June 1994 and October 1997 by selling limited partnership interests in three investment funds. Litwok, 49, stole $3 million, including $1.3 million that went to her live-in companion, Dalia Eliat, an architect who was her administrative assistant, the SEC charged. Litwok also misrepresented her work history to clients, as well as her plans for investing their money, said Wayne M. Carlin, SEC regional director for New York. ``Litwok's actions entailed a fundamental breach of the trust that an investment advisor owes to clients,'' Carlin said. ``She got her hands on money by making serious misrepresentations to them. Once she did that, she stole it and lost the rest through high-risk trading.'' The complaint alleged that Litwok, 49, ran Kohn Investment LP- 1, Kohn Capital LP-33, and Kohn Investment Associates II in East Hampton, New York, where she lived with Eliat. It alleges that Litwok raised $5 million for LP-1 in 1995 and had earned $35 million by trading through Republic New York Securities Corp. before LP-1 collapsed. Litwok, who now lives in Freehold, New Jersey, also stole $2.37 million from the LP-1 fund, which an auditing firm said she should return, the SEC said. Eliat now lives in Manhattan. Partner's Secret Tapes ``Litwok used the funds from LP-1 for her personal benefit, including among other things, purchasing real estate, merchandise from luxury department stores, making automobile payments, and paying for limousine service,'' the complaint said. To cover her losses, Litwok falsely blamed them on Republic and filed an arbitration claim against the firm, the SEC said. Before the arbitration proceedings, Litwok created false trading documents, the SEC said. Eliat secretly recorded Litwok discussing the phony documents and turned the tapes over to a Republic lawyer, the SEC said. An arbitration panel dismissed Litwok's claims as a fraud against Republic and the New York Stock Exchange. It awarded Republic $2.3 million in legal fees. Carlin would not say whether Eliat had cooperated with the SEC. Between 1986 and 1994, Litwok worked as a stock broker for various broker-dealers and was the subject of numerous customer complaints and arbitration proceedings, the SEC complaint said. One complaint of misconduct and unauthorized trading in a customer's account led to a $1.59 million arbitration judgment for the client in March 1996, the SEC said. Eliat was not charged with violating securities law, but the SEC wants her to forfeit her ill-gotten gains. Litwok's attorney, Sean O'Shea, and Eliat's attorney, Robert Heim, did not immediately return calls seeking comment. Dec/28/2000 13:50 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.