Securities and Exchange Commisison v. Pentagon Capital Management PLC et al

Filing 53

OPINION: #98680 Each of the documents at issue in this motion is an Order of the SEC making findings based on facts discovered pursuant to its investigative authority. Such findings are presumed reliable and admissible under Rule 803(8) (C). Because the documents are not being offered to establish liability, Rule 408 is not implicated. The proffered documents are admissible pursuant to Rule 803 (8) (C). Any rulings with respect to relevance or other issues of admissibility will be determined at an appropriate time in the proceedings which follow. (Signed by Judge Robert W. Sweet on 3/11/2010) (jpo) Modified on 3/19/2010 (ajc).

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, Plaintiff, -againstPENTAGON CAPITAL MANAGEMENT PLC and LEWIS CHESTER, Defendants, 08 Civ. 3324 OPINION PENTAGON SPECIAL PURPOSE FUND, LTD., Relief Defendant. APPEARANCES: Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION New York Regional Office 3 World Financial Center, Suite 400 New York, NY 10281 By: George S. Canellos, Esq. Attorneys for Defendants PEPPER HAMILTON LLP HAMILTON SQUARE 600 Fourteenth Street, N.W. Washington, DC 10005 By: Frank C. Razzano, Esq. Ivan B. Knauer, Esq. Matthew D. Foster, Esq. Sweet, D .J Defendants Pentagon Capital Management PLC ("Pentagon"), Lewis Chester ("Chester") and relief defendant Pentagon Special Purpose Fund, Ltd. (collectively, the "Defendants") have moved in limine pursuant to Rule 80318) (C), Fed. R. Evid., to admit into evidence certain Orders Instituting Proceedings ("OIPs") resolving proceedings brought by the plaintiff U.S. Securities and Exchange Commission ("SEC" or the "Commission" or the "Plaintiff"). forth below, the motion is granted. For the reasons set Prior Proceedings This action was commenced by the SEC on April 3, 2008. The amended complaint was filed September 9, 2008 alleging that United Kingdom-based hedge fund adviser Pentagon and its principal, Chester, orchestrated a scheme to defraud United States mutual funds and their investors through late trading and deceptive market timing, violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C. S 77q(a), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. S 78j (b),