MONEY MANAGING SCHEME GETS JUDGED

The following is an excerpt from the SEC website: “The Securities and Exchange Commission announced that on September 14, 2011, the Honorable Lawrence E. Kahn, United States District Court Judge for the Northern District of New York, entered a default judgment against Defendants Christopher W. Bass, Swiss Capital Harbor-USA, LLC, Swiss Capital Harbor Fund A Partners, L.P., Swiss Capital Harbor Fund B Partners, L.P. and Swiss Capital Harbor Fund C Partners, L.P. (collectively, the "Defendants"). The default judgment permanently enjoins the Defendants from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The default judgment also grants leave to the SEC to file for disgorgement, prejudgment interest, and civil monetary penalties against the Defendants following sentencing in the pending criminal case against Bass, U.S. v. Christopher Bass, 10-cr-166 (N.D.N.Y) (LEK). On May 24, 2010, the SEC filed its complaint against the Defendants alleging that from at least January 2007 through at least June 2009, the Defendants conducted a Ponzi scheme, through which they fraudulently obtained approximately $5.9 million from over 400 investors. Bass told prospective investors that he would pool their money to be invested in various enterprises by European money managers. Bass claimed that these managers historically had generated monthly returns ranging from 2.8 % to 6 %. According to the SEC's complaint, Bass's representations were false, and Bass did not invest investors' money as claimed. Instead, Defendants used most of the funds to pay Bass's personal expenses, to pay Defendants' corporate operating expenses, and to satisfy certain investors' redemption requests. The SEC acknowledges the assistance of the United States Attorney's Office for the Northern District of New York.”