Spencer Barasch Application for Reinstatement Before SEC

7/29/2019 Spencer Barasch Application for Reinstatement Before SEC

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M

8,013

i~lAF

RichardMumes,sq.

Sarah.ancur,sq.

U.S.ecuritiesandxchangeommission

100Ftreet,N

ailstop9612

Washington,D0549

Re:pencerarasch

Dearichard&Sarah:

_._~7(i1~.

1~.~i,

sic

Hire

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rt

EnclosedleaseindmlientSpencerarasch'sffidavitandccompanyingttachmentsn

supportfisequestorei~lstatement.Pleaseallfyouavenyuestions.

incerely,

Paul.oggins

Pvsl

Enclosure

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U

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Beforehe

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FileNo.314891

InheMatterf

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Respondent.

TH

O

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BF

thendersigneduthority,ersonallyappearedpencerC.arasch,who,

beingbymulyworn,eposedndaid:

1.

MamesSpencerC.arasch.Iafoundmind,apableofakinghis

affidavit,andaersonallycquaintedithheactstatederein.

2.

IhaveompliedithhettachedOrdernstitutingdministrativeroceedings

Pursuantoection4fheecuritiesExchangectf934ndule02(e)fhe

Commission'sulesfracticethe"Order),whichsttachederetoasxhibit"

nd

incorporatedereinsartofhisffidavit.

3.

Ihavebtainedertificatesofoodtandingorachtatearwherea

member.ttachederetosxhibit"

ndncorporatedereinsartofhisffidavitsa

certificateofoodtandingfromheTexastatear.AttachederetosE~ibit"

nd

incorporatedereinsartofhisffidavitsaertificateofoodtandingfromheWashington

D.C.tatear.

4.

Iertifyhataoturrentlysuspendedrisbarredsanttorneybyourtof

t17eUnitedtates(ornygencyfhenitedtates)rhearrourtofnytate,erritory,

district,commonwealth,rossession.

S.

Iertifyhat,incehentryofherder,haveoteenuspendedsan

attorneyoranffensenvolvingmoralurpitudebyourtfhenitedtatesoranygency

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ofhenitedtates)rhearrourtofnytate,erritory,istrict,commonwealth,r

possession,xceptoranyuspensiononcerningheconducthatwasheasisorherder.

6.

Iertifyhat,incehentryofherder,haveoteenonvictedofelonyr

misdemeanornvolvingmoralurpitudesetorthnRule02(e)(2)ofheCommission'sules

ofractice.

7.

Iertifyhat,incehentryofherder,haveoteenoundyhe

Commissionraourtofhenitedtatesohaveommittediolationofheederal

securitieslaws,xceptoranyindingoncerningheconducthatwasheasisorherder.

8.

IertifyhathaveoteenhargedyheCommissionrhenitedtatesith

aiolationofheederalecuritieslaws,xceptoranyhargeoncerningheconducthatwas

theasisorherder.

9.

Iertifyhathaveotbeenoundyourtofhenitedtatesranytate,

territory,istrict,commonwealth,rossession,ranyarhereof,ithhavingommittedn

offensenvolvingmoralurpitude,xceptoranyindingoncerningheconducthatwashe

basisorherder.

10.

Iertifyhathaveoteenhargedyhenitedtatesranytate,erritory,

district,commonwealth,rossession,ranyarhereof,ith.havingommittednffenseof

moralurpitude,exceptoranyhargeoncerningheconducthatwasheasisofherder.

FDatedhiso~~dayfMay,013.

Spencer.arasch

S

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eforeme,hendersigneduthority,y~~t~.~u

onhishe~dayf

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~--~t~~c_e_

Notaryublic,tateofexas

1~cmico.ang'

y,~Comrnissian~ires

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Page2


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U

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Beforehe

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ReleaseNo.70fi0/

4,012

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FileNo.314891

Inheatterf

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Respondent.

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02(e)OH

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I.

TheecuritiesndxchangeCommission(Commission)eemstappropriatehat

publicdministrativeroceedingse,nderebyre,nstitutedagainstpencerC.arasch

(Respondent"rBarasch"),ursuantoection4fheecuritiesExchangectf934

andule02(e)(1)(ii)ofheCommission'sulesfractice.'

II.

Innticipationofhenstitutionofheseroceedings,espondentasubmittedanffer

ofettlementthe`Offer"hichheCommissionaseterminedoccept.olelyorhe

purposeofheseroceedingsndnytherroceedingsroughtyrnehalffhe

Commission,rowhichheCommissionsaartyndithoutdmittingrenyinghe

findingserein,xceptsoheCommission'surisdictionverimndheubjectatterf

theseroceedings,whichredmitted,espondentonsentsohentry

fhisrdernstituting

Administrativeroceedingsursuantoection4fheecuritiesExchangectf934nd

Rule02(e)fheCommission'sulesfractice,Makingindings,ndmposingemedial

Sanctions(Order),setorthbelow.

~Rule02(e)(1)(ii)rovidesnrelevantart,hat:

TheCommissionayensure

ersonreny,emporarilyrermanently,he

privilegeofppearingrracticingeforetinnyayonyersonwhosfound

byheCommissionfteroticendpportunityorearingnheatter:

{ii)toeackingncharacterrntegrityroavengagednunethicalrmproper

professionalconduct***.


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OhebasisofhisOrderndespondent'sffer,heCommissionindshat:

Barasch,ge4,slicensedoracticelawnheistrictofolumbiand

thetateofexas.

2.

Baraschasssociateistrictirectorornforcementnhe

Commission'sortWorthistrictffice()romune998ntil

April005.

Between998nd003,araschparticipatedpersonally

ndubstantially

ineveralecisionselatingoheCommission'sesponseollegations

thatariousntitiesssociatedwithRobertllenStanford,ncluding

StanfordGroupompany(),iolatedheederalecuritieslawsn

connectionwithhealeoftanfordInternationalank's(SIB"self-

styledcertificatesofeposit."

4.

AftereavingheF

,araschoined

rivatelawirmin2005nd,

laterhatear,ontactedheCommission'sthicsfficeonquireso

whetherherewasnthicalaroisepresentingS

egardingn

inquirybyheF

hethicsfficeinformedimhateas

permanentlyarredfromorkingorS

nhismatter

ecausetwas

theamesrubstantiallyelatedoattersearticipatedinwhile

Commissionmployee.BarascheclinedSGC'sequestor

representationathisime.

5.

Inheallof006,S

etainedBarasch'segalervicesegardingn

S

nquiry.Inotal,araschbilledforpproximately12oursfegal

service,ncludingravelime.

6.

Orboutctober6,006,heCommissionnteredaormalrderof

investigationrelatingoSGC'sossibleiolationofheederalecurities

lawsnonnectionwithhealeofIB'selfstyledcertificatesof

deposit."

7.

AfterearninghatheCommissionadnteredheformalrderof

investigationinvolvingS

nrboutovember7,006,arasch

knowinglyommunicatedithF

taffithhententonfluence

them.irst,araschttemptedobtainnformationfromF

taff

abouthenvestigationofS

econd,hennefheF

attorneys,nrespondingohatall,uestionedwhetheraraschould

representS

araschattemptedoonvinceimhatarasch's

involvementithheS

atterhiletheCommissionasinimal,


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andhataraschouldhereforeepresentS

eforeheCommission.

TheF

ttorneyuggestedhataraschontacthethicsffice.

Soonhereafter,Baraschontactedhethicsfficeandwasgain

informedhatheasermanentlyarredfromorkingnatters

concerningSGC'sossibleiolationofheederalecuritieslawsn

connectionwithhealeofIB'selfstyledcertificatesofeposit."

Baraschbillednourtherimeonheatter.

9,

1$.S.C.07(a)(7)rohibitsanyormerofficerremployee..fhe

executiveranchofhenitedStates..afterheerminationofisrer

serviceremploymentithhenitedtates"fromknowingly

mak[ing],ithhententonfluence,anyommunicationor

appearanceeforeanyfficerremployeefny..agency..nehalf

ofnythererson..,nonnectionwith

articularatter--"

(

inwhichhenitedStates...saartyras

irectand

substantialnterest,

{B)inwhichheersonparticipatedpersonallyandubstantiallys

suchfficeroremployee,nd

(

whichnvolved

pecificartyrpecificartiestheimeof

suchparticipation.

10.

Theommissionindshatarasch'sonductwasrohibitedby8

U.S.C.07(a)(1)andhatisailureocomplyith18.S.C.

207(a)(1)onstitutes"improperrofessionalonduct"nderornrnission

Rulefractice102(e)(1)(ii).

IV.

Baraschhasaid$50,000oheepartmentfusticenettlementoflaimsertainingo

Barasch'sepresentationofGC,hichepresentshemaximumivilfinevailableoraivil

violationof8.S.C.07.

V.

Inviewfheoregoingactualindingsndhe$50,000ivilfine,heCommission

deemstappropriateoimposeheanctiongreedonRespondent'sffer.

Accordingly,tisherebyOD

Deffectivemmediately,hat:

A.

Respondentsdeniedherivilegeofppearingrracticingeforehe

CommissionsanttorneyorO

romheateofherder.

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B.

Afteroneearromheateofherder,espondentayequesthathe

CommissiononsiderispplicationoesumeppearingandracticingeforeheCommission

asnttorney.Thepplicationhouldbeentohettentionofhefficeofheeneral

Counsel.C.

Inupportofuchanpplication,espondentustrovideaertificateofood

standingromachtatebarwhereespondentsaember.

D.

Inupportofuchanpplication,espondentustlsoubmitnffidavit

truthfullytating,nderenaltyoferjury:

thatespondentasompliedithherder;

2.

thatespondent:

isnoturrentlyuspendedrisbarredsnttorneybyourtof

thenitedStatesoranygencyfhenitedtates)rhearr

courtofnytate,erritory,istrict,commonwealth,rossession;

and

b.

sincehentryofherder,asoteenuspendedsanttorney

foranffensenvolvingoralurpitudebyourtofhenited

Statesoranygencyfhenitedtates)rhearrourtof

anytate,erritory,istrict,commonwealth,rossession,xcept

foranyuspensiononcerningheonducthatwasheasisor

therder;

3.

thatespondent,incehentryofherder,asoteenonvictedof

felonyrisdemeanornvolvingoralurpitudesetorthnRule

102(e)(2)ofheCommission'sulesofractice;and

4.

thatRespondent,incehentryofherder:

a.

hasoteenoundyheCommissionraourtofhenited

Statesohaveommitted

iolationofheederalecuritiesaws,

exceptoranyindingoncerningheonducthatwasheasis

forherder;

b.

hasoteenhargedbyheCommissionrhenitedtatesith

aiolationofheederalecuritiesaws,xceptoranyharge

concerningheonducthatwasheasisorherder;

c.

hasoteenoundbyourtofhenitedtatesranytate,

territory,istrict,commonwealth,rossession,ranyarhereof,

withhavingommittednffensenvolvingoralurpitude,


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exceptoranyindingoncerningheonducthatwasheasis

forherder;nd

d.

hasoteenhargedbyhenitedtatesrnytate,erritory,

district,commonwealth,rossession,rnyarhereof,ith

havingommittednffensenvolvingoralurpitude,xceptor

anyhargeoncerningheonducthatwasheasisorherder.

E.

IfespondentrovidesheocumentationequirednaragraphsCndD,nd

theCommissionetermineshatheruthfullyttestedoachfhetemsequirednhis

affidavit,hehallbyommissionrdereermittedoesumeppearingndracticingefore

theCommissionsnttorney.

F.

Ifespondentsnotbleoruthfullyttesttohetatementsequiredn

Subparagraphs(2)(b)r(4),espondenthallprovidenxplanationsoheactsnd

circumstancesertainingoheatterndheCommissionayold

earingoetermine

whetherheresgoodauseoermithimoesumeppearingndracticingeforehe

Commissionsnttorney.

BheCommission,

-5-

ElizabethMurphy

Secretary


9/10

S

BR~h

9J+

i1~~e~n''edn \934

OfficeoftheChiefDisciplinaryCounsel

May1,013

Re:Spencer.arasch,tateBarumber0789075

ToW

tMayoncern:

ThissoertifyhatMr.Spencer.araschasicensedoracticelawnTexasn

April8,994,ndsanctivememberngoodtandingithhetateBarfTexas."Good

standing"meanshattheattorneyiscurrentonpaymentfBaruesndattorney

occupationtax;hasetinimumontinuingLegalducationrequirements;andsnot

presentlyunderitherdministrativerisciplinarysuspension.

Noreviousisciplinaryanctionshaveeennteredgainstr.arasch'slawicense.

Sincerely,

~

LindaA.cevedo

ChiefisciplinaryCounsel

LA/aa

.,EXH1BtT

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P.O.B

2487,C

TATION,AUSTIN,T

871-2487,12.427.1350;Fes:12.427.4167


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By.

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Spencer Barasch Application for Reinstatement Before SEC

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Transcript of Spencer Barasch Application for Reinstatement Before SEC