Summary
Teicher was barred from association with a broker, dealer, investment adviser, investment company or municipal securities dealer by the Commission in 1998. He moved that the Commission modify the bar to permit him to associate with an investment adviser as a portfolio manager but in which he had no direct economic interest. The Commission denied the motion to modify its previous order.
Discussion
Teicher planned to invest in and raise money for an investment fund that will be managed by an adviser. Teicher would be a portfolio manager for the fund. The Division of Enforcement opposed Teicher's motion.
Teicher was convicted of insider trading in 1990, was sentenced to 18 months in prison, five years probation and fined $200,000 personally. His company was fined $600,000. He consented to a court order enjoining him from violating anti-fraud provisions of the securities laws. In 1997 the Commission denied Teicher's motion to amend the order to permit him to manage Teicher family assets. The Commission noted that Teicher's previous violations involved an "extensive insider trading scheme." The Commission in that case noted that bars should "remain in place in the usual case and be removed only in compelling circumstances." It noted that a permanent bar will be removed only under extraordinary circumstances.
Comment
This is Teicher's second failed attempt to obtain relief from the bar order. When you have been barred because of a criminal conviction for insider trading you just aren't going to get back in the business.
