FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Commission announced that on October 9, 2013, the Honorable John W. Darrah sentenced Steven W. Salutric to 96 months imprisonment, to be followed by three years of supervised release, as well as $3.89 million in criminal restitution. U.S. v. Steven Salutric, Criminal Action No. 1:11-cr-00916 (N.D. Ill.). On August 16, 2012, Salutric pled guilty to one count of wire fraud (18 USC §1343).
Previously, in January 2010 the SEC filed an action against Salutric in the U.S. District Court for the Northern District of Illinois. SEC v. Steven W. Salutric, Civil Action No. 1:10-cv-00115 (N.D. Ill). The SEC’s complaint alleged that Salutric misappropriated over $2 million from at least 17 clients to support businesses and entities linked to him and to make Ponzi-like payments to other clients. In a particularly egregious example, the SEC complaint alleged that Salutric misappropriated over $400,000 from a 96-year-old client who resided in a nursing home and suffered from dementia. According to the SEC complaint, Salutric violated Section 10(b) of the Securities Exchange Act (“Exchange Act”) of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”).
Pursuant to the SEC's request for emergency relief, the emergency judge, the Honorable William J. Hibbler issued a temporary restraining order against Salutric freezing all assets under his control in addition to other emergency relief. Pursuant to the SEC’s request, on February 8, 2010, a receiver was appointed to marshal all existing assets of Salutric. On July 14, 2010, pursuant to Salutric’s consent, the Honorable Robert M. Dow, Jr. entered an order of permanent injunction against further violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 206(1) and (2) of the Advisers Act. Finally, on September 10, 2010, Salutric was barred from association with any investment adviser.
