In the Matter of Augustine Capital Management, LLC
(f/k/a Augustine Capital Management, Inc.), et al.
Admin. Proc. File No. 3-17740
On October 26, 2017, the Commission settled administrative and cease-and-desist proceedings (the “Order”) that were instituted on December 20, 2016 against Augustine Capital Management, LLC (f/k/a Augustine Capital Management, Inc.) (“ACM”), an investment adviser for Augustine Fund, L.P., a private fund (the “Fund”); and two of ACM’s owners, John T. Porter (“Porter”) and Thomas F. Duszynski, CPA (“Duszynski”) (collectively, the “Respondents”). In the Order, the Commission found that, from 2012 to 2015, the Respondents violated federal securities laws when they caused multiple conflicted transactions and made misrepresentations while acting as the investment adviser to the Fund. The Respondents used Fund monies to benefit themselves and entities owned by Porter and Duszynski without disclosing these conflicts of interest to the Fund's limited partners. The Commission ordered, and the Respondents have paid, a total of $1,003,306.11 in disgorgement, prejudgment interest, and civil money penalties to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents’ conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. IA-4800.
On December 14, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP f/k/a Damasco & Associates LLP, as the Tax Administrator of the Fair Fund.
For more information, please contact the Commission:
Office of Distributions