. SEC DIVISION OF ENFORCEMENT Case Closing Recommendation : Run on 11/21/2007 ‘Case No.: NY-07563 ‘Caso Name: Certein Hedge Fund Trading Pra Case Closing Recommendation Narrative: ‘ivostiaion Closing Naratve {NY-7564UCentain Hedge Fund Trading Practices .aReason Opened {he sta opened this case on January 4, 2006, to Ivestgae (1) whether BemardL. ado Investment Secu LLG (CBLN" a registered broker-dealer, proved lvestnentsdiscry sures to large hedge Ris nveaton of te oputaon Fequioments of the investment Advisers Act of 1940, and (2) whether BLM engaged in any Faudlont actniies a eehcn wih these services, The investgalon was prompted, et bya tier tem an Snaopend (a person who BLM and two ois largest hedge fund cents vlintarty produced documents othe sla, The sia tok the voluntary {Relmony of Berard Mado, is assistant, anda prncpal of BLA largest hedge fund cient FaFfeld Grose up (FOG. The staf algo intervened a FG employer. W.cConelusions Reached: Tha staf found no evidence of raud. The staff i fd, however, that BLM acted as an investnont advisor to cartain hedge {unds,ietiatons ad high net wort inaviduals In vclaton ofthe realstraon requromonts of be Aaveaers cd The saaso ‘executing broker lo FGG's accounts. As a rosul of dlacussine with the slat BLM rgitored wiht Gor roo ‘nvostment adviser, and FG revised is disclosures fo Investors to retest BLAS vse roe WanReasons for Closing: We recomend closing this investigation because both BLM and FG voluntary remedied the uncovered vsatons, and ‘because those violations were not 80 serious as to warrant an enforcement acon \V.2Comptiance Requirements Sad Rag Bobs er ta issn ih he oats cl th ne MeL ad Ber naman ated August 20, 1983, oncoming the clispeston of records upon the Gosing of cases, Nb accoss requests or protein {sere governing te case records are oustanding, According othe Commiscion's FIA otca, so lary 10,2907 ho ‘ost recent denial of @ FOVA request (request number O7-0T648-FOIA) in tis maltr yas on January 3, 2007, Wreeene ‘Famains a FOIA concem as the requester has sk years to appeal the denial. Accordingly, any malodal the Sia enek _ghorwtee required to retain wil be retained upon closing as Catagory F records, There we no Galegory€ rossi, ‘Torminatton leters have boon sent to Bemard L. Madofl Investment Secures LLG, Bemerd L. Macof and fale Greenwich Group, The staff has no objection fo the eventual desbucton of fe les and has mo knowedge of any fnpediment to such a lepostiion VioNames and Ties of Sta [This closing recominandtion was prepared by Simone Suh, Staff Atomey, and reviewed and approved by Doria ‘Bachenteimer, Assistant Regonal Dractor, and Meaghan Cheung, Branch Ghia. [ Representations q aOR ; Aftor consultation wth FOWNPA Branch, vas deterined tha he FOIA slats ofthese case leis es folowe (Chock one) Wo FOIA cancome ext ao otArequet fd on Is pend witout daison, Category F Matera wb ted wih telance fe FotAroquet was dred on Category F Mall ibe marad eb dcr sh yous ater darn dt. OIA determinaton was appealed snd dood on CalegryF Mata wi be mare obs cored ah yours ar deco a 3 CatogoryE Records The oe cotatn no Category E Recor, A copy of the index for all designated Category E (Miscellaneous) Records Is attached. Terinatin Lets Noto ter ae requ. ‘Termination letters will be sent to the parties listed in the case narrative, oo0o00 oo jooSEC DIVISION OF ENFORCEMENT Case Opening Report un on a4z00s Case No.2 NY-07563. (Case Name: Certain Hodge Fund Trading Pr Dat Openets 17000 Cane Opening Narrative: Unedocsed maat nie a eng at Geman. Mod vestrent Secerfps LLC a estore broker dealer New York coun, fads aha a aoged Pee exer gen sess, and hat BLM operates ths buts 09 a Ponlcencin ee eet Fea specie {acts about the aloged Ponzl scheme, and the complainant was neler 3 BLil rete er ‘amounts at issue, the stain the abundance of canon 277 on — a wea Kaela. be: _ ‘Ae5iOiAsat Reg AawDist Adm Cc — Submit this form te the Office of Ghief Gounsel, Division of Enforcanint. ~