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SEC says that Ram Capital Resources operated as an unregistered broker
By Devika Patel
Knoxville, Tenn., June 22 - Ram Capital Resources, LLC and its two principals, Michael E. Fein and Stephen E. Saltzstein, have been charged by the Securities and Exchange Commission of operating as unregistered broker-dealer, the SEC announced Monday.
The SEC found that, from 2001 through early 2005, Ram identified, structured and solicited investors, most of which were hedge funds, for private investments in public equities offerings.
Ram's business model focused on identifying investment opportunities within the PIPEs market and soliciting hedge funds and other investors to invest in these offerings. Ram also played a significant role in structuring and negotiating the offerings' terms.
Ram received compensation in the form of certain percentages of the gross amounts invested and, in most instances, certain percentages of any warrants investors received as part of their investments.
Fein's and Saltzstein's compensation was directly derived from the fees Ram earned.
Under the terms of the settlement, Ram, Fein, and Saltzstein, without admitting or denying the commission's findings, consented to the issuance of an administrative order requiring each of them to cease and desist from committing or causing any violations and any future violations of section 15(a) of the Securities Exchange Act of 1934.
In addition, Fein and Saltzstein consented to an administrative order requiring each to pay $364,721 in disgorgement, plus a prejudgment interest of $83,657. The pair also must pay civil penalties of $90,000 and $60,000, respectively.
Fein and Saltzstein are also barred from associating with any broker or dealer for one year and six months, respectively.
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