In re Cherokee Investment Partners

 
 
UNITED STATES OF AMERICA 
 Before the 
 SECURITIES AND EXCHANGE COMMISSION 
 
 
INVESTMENT ADVISERS ACT OF 1940 
Release No. 4258 / November 5, 2015 
 
ADMINISTRATIVE PROCEEDING 
File No. 3-16945 
 
 
In the Matter of 
 
Cherokee Investment Partners, LLC and     
Cherokee Advisers, LLC, 
 
Respondents. 
 
 
ORDER INSTITUTING CEASE-AND-
DESIST PROCEEDINGS PURSUANT TO 
SECTION 203(k) OF THE INVESTMENT 
ADVISERS ACT OF 1940, MAKING 
FINDINGS, AND IMPOSING A CEASE-
AND-DESIST ORDER 
   
 
I. 
 
 The Securities and Exchange Commission (“Commission”) deems it appropriate that cease-
and-desist proceedings be, and hereby are, instituted pursuant to Section 203(k) of the Investment 
Advisers Act of 1940 (“Advisers Act”) against Cherokee Investment Partners, LLC (“CIP”) and 
Cherokee Advisers, LLC (“CA”) (collectively referred to as “Respondents”). 
 
II. 
  
 In anticipation of the institution of these proceedings, Respondents have submitted an Offer 
of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 
purpose of these proceedings and any other proceedings brought by or on behalf of the 
Commission, or to which the Commission is a party, and without admitting or denying the findings  
herein, except as to the Commission’s jurisdiction over them and the subject matter of these 
proceedings, which are admitted, Respondents consent to the entry of this Order Instituting Cease-
and-Desist Proceedings Pursuant to Section 203(k) of the Investment Advisers Act of 1940, 
Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below. 
 
  

 
 
2 
III. 
 
 On the basis of this Order and Respondents’ Offer, the Commission finds
1
 that: 
 
SUMMARY 
 
1. This matter arises from the improper allocation by two affiliated private equity fund 
advisers to client funds of certain consulting, legal, and compliance-related expenses incurred based 
on their standing as registered and/or relying investment advisers, as well as other related 
compliance failures.  Cherokee Investment Partners, LLC is a private equity fund adviser that has at 
all relevant times acted as the manager of two private equity real estate funds with investments in 
environmentally contaminated property:  Cherokee Investment Partners II, L.P. (“Fund II”) and 
Cherokee Investment Partners III, L.P. and Cherokee Investment Partners III Parallel Fund, L.P. 
(collectively, “Fund III”).  Cherokee Advisers, LLC is a private equity fund adviser that has at all 
relevant times acted as the manager of Cherokee Investment Partners IV, L.P. (“Fund IV”) 
(hereafter, Fund II, Fund III, and Fund IV are collectively referred to as “the Funds”). 
 
2. Between July 2011 and March 2015, CIP and CA incurred consulting, legal and 
compliance-related expenses in the course of either preparing for registration as an investment 
adviser under the Advisers Act, complying with legal obligations arising from registration 
(including preparing for examination by the staff of the Commission’s Office of Compliance 
Inspections and Examinations (“Commission Exam staff”)), or responding to an investigation of 
Respondents’ conduct by the staff of the Commission’s Division of Enforcement (“Commission 
Enforcement staff”).  Respondents allocated to the Funds, and caused the Funds to pay for, 
$455,698 of these expenses.  Although the Funds’ limited partnership agreements disclosed that the 
Funds would be charged for expenses that in the good faith judgment of the general partner arose 
out of the operation and activities of the Funds, including the legal and consulting expenses of the 
Funds, there was no disclosure that the Funds would be charged for the advisers’ legal and 
compliance expenses.  As a result, CIP and CA breached their fiduciary duties to the Funds in 
violation of Section 206(2) of the Advisers Act and also violated Section 206(4) of the Advisers Act 
and Rule 206(4)-8 thereunder. 
 
3. Respondents failed to adopt written policies or procedures reasonably designed to 
prevent violations of the Advisers Act arising from the allocation of expenses to the 
Funds.  Additionally, Respondents failed to adequately review, no less frequently than annually, 
the adequacy of their policies and procedures to prevent violations of the Advisers Act and the 
rules thereunder, and the effectiveness of their implementation.  Accordingly, Respondents also 
violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. 
 
  
                                                 
1
  The findings herein are made pursuant to Respondents’ Offer and are not binding on any other person or 
entity in this or any other proceeding. 

 
 
3 
RESPONDENTS AND RELATED ENTITIES 
 
4. CIP is a Delaware limited liability company formed in 1993, with its principal place 
of business in Raleigh, North Carolina.  CIP is a private fund adviser that has been registered with 
the Commission since March 2012 and has at all times acted as the manager of Fund II and Fund 
III. 
 
5. CA is a Delaware limited liability company formed in 2005, with its principal place 
of business in Raleigh, North Carolina.  CA is a private fund adviser and has at all times acted as the 
manager of Fund IV.  CA is not independently registered with the Commission as an investment 
adviser; rather, it elected to file as a “relying adviser” on CIP’s Form ADV.  CA has no employees, 
is owned by the same persons who own CIP, and carries out its management duties by using CIP’s 
personnel and facilities. 
 
6. Fund II is a Delaware limited partnership and private equity fund formed in 1998 to 
purchase and remediate environmentally contaminated properties with approximately $250 million 
in capital commitments from twenty-one investors, including institutional investors.  Fund II is in 
wind down status and currently has no actively managed investments. 
 
7. Fund III are Delaware limited partnerships and private equity funds formed in 2002 
to purchase and remediate environmentally contaminated properties with approximately $620 
million in capital commitments from fourteen investors, including institutional investors.  Fund III 
is in wind down status and has two remaining actively managed investments. 
 
8. Fund IV is a Delaware limited partnership and private equity fund formed in 2005 
to purchase and remediate environmentally contaminated properties with approximately $625 
million in capital commitments from fifteen investors, including institutional investors.  Fund IV 
has seven actively managed investments. 
 
FACTS 
 
9. In May 2011, Respondents began preparations for registering with the Commission 
as an investment adviser under the Advisers Act in accordance with the then-forthcoming 
requirements of the Dodd-Frank Act.  Respondents retained a third party compliance consultant 
(hereafter, the “Compliance Consultant”) and a law firm to provide consulting and legal services 
concerning its planned registration as an investment adviser. 
 
10. Respondents allocated to the Funds, and caused the Funds to pay for, certain 
compliance-related expenses, totaling $171,232, incurred in the course of either preparing for 
registration as an investment adviser under the Advisers Act or complying with legal obligations 
arising from registration.  This included the fees charged by the Compliance Consultant to 
Respondents, as well as other consulting, registration-related legal fees, and compliance-related 
expenses. 
 

 
 
4 
11. In 2013, the Commission Exam staff conducted an examination of Respondents to 
review Respondents’ compliance as a newly-registered adviser and relying adviser with certain 
provisions of the federal securities laws. 
 
12. Respondents incurred certain expenses, including consulting and legal services, in 
connection with responding to the Commission Exam staff’s review.  Respondents allocated to the 
Funds, and caused the Funds to pay for, certain of these expenses totaling $239,362. 
 
13. In April 2014, Respondents received notice that the Commission Enforcement staff 
was conducting an investigation of, among other things, Respondents’ allocation of expenses to the 
Funds.  Respondents incurred certain expenses, including paying for legal services in connection 
with responding to the Commission Enforcement staff’s investigation.  Respondents allocated to 
the Funds, and caused the Funds to pay for, certain of these expenses, totaling $45,104. 
 
14. As detailed in paragraphs 9 through 13, above, between July 2011 and March 2015, 
Respondents allocated to the Funds, and caused the Funds to pay for, a total of $455,698 in 
expenses incurred in the course of preparing for registration as an investment adviser under the 
Advisers Act, complying with legal obligations arising from registration, and responding to the 
Commission Exam staff and the Commission Enforcement staff.  In connection with this 
allocation, Respondents sought and received the advice of their counsel and other advisers. 
 
15. In March 2015, Respondents ceased allocating to the Funds all such expenses and, 
in April 2015, reimbursed the Funds for the full amount of the expenses previously misallocated to 
them. 
 
16. Although the limited partnership agreements disclosed that the Funds would be 
charged for expenses that in the good faith judgment of the general partners arose out of the 
operation and activities of the Funds, the limited partnership agreements did not disclose that the 
Funds would be charged for a portion of the advisers’ own legal and compliance expenses. 
 
17. Separately, Respondents failed to adopt written policies or procedures reasonably 
designed to prevent violations of the Advisers Act arising from the allocation of expenses to the 
Funds.  Respondents also failed to adequately review, no less frequently than annually, the 
adequacy of its policies and procedures to prevent violations of the Advisers Act and the rules 
thereunder, and the effectiveness of their implementation. 
 
VIOLATIONS 
 
18. Section 206(2) of the Advisers Act prohibits investment advisers from directly or 
indirectly engaging “in any transaction, practice, or course of business which operates as a fraud or 
deceit upon any client or prospective client.”  A violation of Section 206(2) of the Advisers Act 
may rest on a finding of simple negligence.  SEC v. Steadman, 967 F.2d 636, 643 n.5 (D.C. Cir. 
1992) (citing SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180, 195 (1963)).  Proof of 

 
 
5 
scienter is not required to establish a violation of Section 206(2) of the Advisers Act.  Id.  As a 
result of the conduct described above, Respondents violated Section 206(2) of the Advisers Act. 
 
19. Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder make it unlawful 
for any investment adviser to a pooled investment vehicle to “[m]ake any untrue statement of a 
material fact or omit to state a material fact necessary to make the statements made, in the light of 
the circumstances under which they were made, not misleading, to any investor or prospective 
investor in the pooled investment vehicle” or “engage in any act, practice, or course of business 
that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in 
the pooled investment vehicle.”  Proof of scienter is not required to establish a violation of Section 
206(4) of the Advisers Act.  SEC v. Steadman, 967 F.2d 636, 647 (D.C. Cir 1992).  As a result of 
the conduct described above, Respondents violated Section 206(4) of the Advisers Act and Rule 
206(4)-8 thereunder. 
 
20. Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder require registered 
investment advisers to adopt and implement written policies and procedures reasonably designed 
to prevent violations of the Advisers Act and its rules, and to review, no less frequently than 
annually, the adequacy of policies and procedures and the effectiveness of their implementation.  
As a result of the conduct described above, Respondents violated Section 206(4) of the Advisers 
Act and Rule 206(4)-7 thereunder. 
 
RESPONDENTS’ COOPERATION AND REMEDIAL EFFORTS 
 
In determining to accept Respondents’ Offer, the Commission considered remedial acts 
taken by Respondents and cooperation afforded the Commission staff. 
 
IV. 
 
 In view of the foregoing, the Commission deems it appropriate to impose the sanctions 
agreed to in Respondents’ Offer. 
 
 Accordingly, pursuant to Section 203(k) of the Advisers Act, it is hereby ORDERED that: 
 
A. Respondents cease and desist from committing or causing any violations and any 
future violations of Sections 206(2) and 206(4) of the Advisers Act and Rules 
206(4)-7 and 206(4)-8 thereunder. 
 
B. Respondents shall pay jointly and severally within ten (10) business days of the 
entry of this Order, a civil monetary penalty in the amount of $100,000 to the 
Securities and Exchange Commission for transfer to the general fund of United 
States Treasury in accordance with Exchange Act Section 21F(g)(3).  If timely 
payment is not made, additional interest shall accrue pursuant to 31 U.S.C. § 
3717.  Payment must be made in one of the following ways:   
 

 
 
6 
(1) Respondents may transmit payment electronically to the Commission, 
which will provide detailed ACH transfer/Fedwire instructions upon 
request;  
 
(2) Respondents may make direct payment from a bank account via Pay.gov 
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or  
 
(3) Respondents may pay by certified check, bank cashier’s check, or United 
States postal money order, made payable to the Securities and Exchange 
Commission and hand-delivered or mailed to:  
 
Enterprise Services Center 
Accounts Receivable Branch 
HQ Bldg., Room 181, AMZ-341 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 
 
Payment by check or money order must be accompanied by a cover letter 
identifying CIP and CA as Respondents in these proceedings, and the file 
number of these proceedings; a copy of the cover letter and check or money 
order must be sent to Stephen E. Donahue, Assistant Regional Director, 
Asset Management Unit, Division of Enforcement, Securities and Exchange 
Commission, 950 E. Paces Ferry Rd., NE, Suite 900, Atlanta, GA  30326-
1382. 
 
By the Commission. 
 
 
 
Brent J. Fields  
Secretary 

UNITED STATES OF AMERICA 

 Before the 

 SECURITIES AND EXCHANGE COMMISSION 

 

 

INVESTMENT ADVISERS ACT OF 1940 

Release No. 4258 / November 5, 2015 

 

ADMINISTRATIVE PROCEEDING 

File No. 3-16945 

 

 

In the Matter of 

 

Cherokee Investment Partners, LLC and     

Cherokee Advisers, LLC, 

 

Respondents. 

 

 

ORDER INSTITUTING CEASE-AND-

DESIST PROCEEDINGS PURSUANT TO 

SECTION 203(k) OF THE INVESTMENT 

ADVISERS ACT OF 1940, MAKING 

FINDINGS, AND IMPOSING A CEASE-

AND-DESIST ORDER 

   

 

I. 
 

 The Securities and Exchange Commission (“Commission”) deems it appropriate that cease-

and-desist proceedings be, and hereby are, instituted pursuant to Section 203(k) of the Investment 

Advisers Act of 1940 (“Advisers Act”) against Cherokee Investment Partners, LLC (“CIP”) and 

Cherokee Advisers, LLC (“CA”) (collectively referred to as “Respondents”). 

 

II. 
  

 In anticipation of the institution of these proceedings, Respondents have submitted an Offer 

of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 

purpose of these proceedings and any other proceedings brought by or on behalf of the 

Commission, or to which the Commission is a party, and without admitting or denying the findings  

herein, except as to the Commission’s jurisdiction over them and the subject matter of these 

proceedings, which are admitted, Respondents consent to the entry of this Order Instituting Cease-

and-Desist Proceedings Pursuant to Section 203(k) of the Investment Advisers Act of 1940, 

Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as set forth below. 

 

  



 

 

2 

III. 
 

 On the basis of this Order and Respondents’ Offer, the Commission finds1 that: 

 

SUMMARY 

 

1. This matter arises from the improper allocation by two affiliated private equity fund 

advisers to client funds of certain consulting, legal, and compliance-related expenses incurred based 

on their standing as registered and/or relying investment advisers, as well as other related 

compliance failures.  Cherokee Investment Partners, LLC is a private equity fund adviser that has at 

all relevant times acted as the manager of two private equity real estate funds with investments in 

environmentally contaminated property:  Cherokee Investment Partners II, L.P. (“Fund II”) and 

Cherokee Investment Partners III, L.P. and Cherokee Investment Partners III Parallel Fund, L.P. 

(collectively, “Fund III”).  Cherokee Advisers, LLC is a private equity fund adviser that has at all 

relevant times acted as the manager of Cherokee Investment Partners IV, L.P. (“Fund IV”) 

(hereafter, Fund II, Fund III, and Fund IV are collectively referred to as “the Funds”). 

 

2. Between July 2011 and March 2015, CIP and CA incurred consulting, legal and 

compliance-related expenses in the course of either preparing for registration as an investment 

adviser under the Advisers Act, complying with legal obligations arising from registration 

(including preparing for examination by the staff of the Commission’s Office of Compliance 

Inspections and Examinations (“Commission Exam staff”)), or responding to an investigation of 

Respondents’ conduct by the staff of the Commission’s Division of Enforcement (“Commission 

Enforcement staff”).  Respondents allocated to the Funds, and caused the Funds to pay for, 

$455,698 of these expenses.  Although the Funds’ limited partnership agreements disclosed that the 

Funds would be charged for expenses that in the good faith judgment of the general partner arose 

out of the operation and activities of the Funds, including the legal and consulting expenses of the 

Funds, there was no disclosure that the Funds would be charged for the advisers’ legal and 

compliance expenses.  As a result, CIP and CA breached their fiduciary duties to the Funds in 

violation of Section 206(2) of the Advisers Act and also violated Section 206(4) of the Advisers Act 

and Rule 206(4)-8 thereunder. 

 

3. Respondents failed to adopt written policies or procedures reasonably designed to 

prevent violations of the Advisers Act arising from the allocation of expenses to the 

Funds.  Additionally, Respondents failed to adequately review, no less frequently than annually, 

the adequacy of their policies and procedures to prevent violations of the Advisers Act and the 

rules thereunder, and the effectiveness of their implementation.  Accordingly, Respondents also 

violated Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. 

 

  

                                                 
1  The findings herein are made pursuant to Respondents’ Offer and are not binding on any other person or 

entity in this or any other proceeding. 



 

 

3 

RESPONDENTS AND RELATED ENTITIES 

 

4. CIP is a Delaware limited liability company formed in 1993, with its principal place 

of business in Raleigh, North Carolina.  CIP is a private fund adviser that has been registered with 

the Commission since March 2012 and has at all times acted as the manager of Fund II and Fund 

III. 

 

5. CA is a Delaware limited liability company formed in 2005, with its principal place 

of business in Raleigh, North Carolina.  CA is a private fund adviser and has at all times acted as the 

manager of Fund IV.  CA is not independently registered with the Commission as an investment 

adviser; rather, it elected to file as a “relying adviser” on CIP’s Form ADV.  CA has no employees, 

is owned by the same persons who own CIP, and carries out its management duties by using CIP’s 

personnel and facilities. 

 

6. Fund II is a Delaware limited partnership and private equity fund formed in 1998 to 

purchase and remediate environmentally contaminated properties with approximately $250 million 

in capital commitments from twenty-one investors, including institutional investors.  Fund II is in 

wind down status and currently has no actively managed investments. 

 

7. Fund III are Delaware limited partnerships and private equity funds formed in 2002 

to purchase and remediate environmentally contaminated properties with approximately $620 

million in capital commitments from fourteen investors, including institutional investors.  Fund III 

is in wind down status and has two remaining actively managed investments. 

 

8. Fund IV is a Delaware limited partnership and private equity fund formed in 2005 

to purchase and remediate environmentally contaminated properties with approximately $625 

million in capital commitments from fifteen investors, including institutional investors.  Fund IV 

has seven actively managed investments. 

 

FACTS 
 

9. In May 2011, Respondents began preparations for registering with the Commission 

as an investment adviser under the Advisers Act in accordance with the then-forthcoming 

requirements of the Dodd-Frank Act.  Respondents retained a third party compliance consultant 

(hereafter, the “Compliance Consultant”) and a law firm to provide consulting and legal services 

concerning its planned registration as an investment adviser. 

 

10. Respondents allocated to the Funds, and caused the Funds to pay for, certain 

compliance-related expenses, totaling $171,232, incurred in the course of either preparing for 

registration as an investment adviser under the Advisers Act or complying with legal obligations 

arising from registration.  This included the fees charged by the Compliance Consultant to 

Respondents, as well as other consulting, registration-related legal fees, and compliance-related 

expenses. 

 



 

 

4 

11. In 2013, the Commission Exam staff conducted an examination of Respondents to 

review Respondents’ compliance as a newly-registered adviser and relying adviser with certain 

provisions of the federal securities laws. 

 

12. Respondents incurred certain expenses, including consulting and legal services, in 

connection with responding to the Commission Exam staff’s review.  Respondents allocated to the 

Funds, and caused the Funds to pay for, certain of these expenses totaling $239,362. 

 

13. In April 2014, Respondents received notice that the Commission Enforcement staff 

was conducting an investigation of, among other things, Respondents’ allocation of expenses to the 

Funds.  Respondents incurred certain expenses, including paying for legal services in connection 

with responding to the Commission Enforcement staff’s investigation.  Respondents allocated to 

the Funds, and caused the Funds to pay for, certain of these expenses, totaling $45,104. 

 

14. As detailed in paragraphs 9 through 13, above, between July 2011 and March 2015, 

Respondents allocated to the Funds, and caused the Funds to pay for, a total of $455,698 in 

expenses incurred in the course of preparing for registration as an investment adviser under the 

Advisers Act, complying with legal obligations arising from registration, and responding to the 

Commission Exam staff and the Commission Enforcement staff.  In connection with this 

allocation, Respondents sought and received the advice of their counsel and other advisers. 

 

15. In March 2015, Respondents ceased allocating to the Funds all such expenses and, 

in April 2015, reimbursed the Funds for the full amount of the expenses previously misallocated to 

them. 

 

16. Although the limited partnership agreements disclosed that the Funds would be 

charged for expenses that in the good faith judgment of the general partners arose out of the 

operation and activities of the Funds, the limited partnership agreements did not disclose that the 

Funds would be charged for a portion of the advisers’ own legal and compliance expenses. 

 

17. Separately, Respondents failed to adopt written policies or procedures reasonably 

designed to prevent violations of the Advisers Act arising from the allocation of expenses to the 

Funds.  Respondents also failed to adequately review, no less frequently than annually, the 

adequacy of its policies and procedures to prevent violations of the Advisers Act and the rules 

thereunder, and the effectiveness of their implementation. 

 

VIOLATIONS 

 

18. Section 206(2) of the Advisers Act prohibits investment advisers from directly or 

indirectly engaging “in any transaction, practice, or course of business which operates as a fraud or 

deceit upon any client or prospective client.”  A violation of Section 206(2) of the Advisers Act 

may rest on a finding of simple negligence.  SEC v. Steadman, 967 F.2d 636, 643 n.5 (D.C. Cir. 

1992) (citing SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180, 195 (1963)).  Proof of 



 

 

5 

scienter is not required to establish a violation of Section 206(2) of the Advisers Act.  Id.  As a 

result of the conduct described above, Respondents violated Section 206(2) of the Advisers Act. 

 

19. Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder make it unlawful 

for any investment adviser to a pooled investment vehicle to “[m]ake any untrue statement of a 

material fact or omit to state a material fact necessary to make the statements made, in the light of 

the circumstances under which they were made, not misleading, to any investor or prospective 

investor in the pooled investment vehicle” or “engage in any act, practice, or course of business 

that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in 

the pooled investment vehicle.”  Proof of scienter is not required to establish a violation of Section 

206(4) of the Advisers Act.  SEC v. Steadman, 967 F.2d 636, 647 (D.C. Cir 1992).  As a result of 

the conduct described above, Respondents violated Section 206(4) of the Advisers Act and Rule 

206(4)-8 thereunder. 

 

20. Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder require registered 

investment advisers to adopt and implement written policies and procedures reasonably designed 

to prevent violations of the Advisers Act and its rules, and to review, no less frequently than 

annually, the adequacy of policies and procedures and the effectiveness of their implementation.  

As a result of the conduct described above, Respondents violated Section 206(4) of the Advisers 

Act and Rule 206(4)-7 thereunder. 

 

RESPONDENTS’ COOPERATION AND REMEDIAL EFFORTS 

 

In determining to accept Respondents’ Offer, the Commission considered remedial acts 

taken by Respondents and cooperation afforded the Commission staff. 

 

IV. 

 

 In view of the foregoing, the Commission deems it appropriate to impose the sanctions 

agreed to in Respondents’ Offer. 

 

 Accordingly, pursuant to Section 203(k) of the Advisers Act, it is hereby ORDERED that: 

 

A. Respondents cease and desist from committing or causing any violations and any 

future violations of Sections 206(2) and 206(4) of the Advisers Act and Rules 

206(4)-7 and 206(4)-8 thereunder. 

 

B. Respondents shall pay jointly and severally within ten (10) business days of the 

entry of this Order, a civil monetary penalty in the amount of $100,000 to the 

Securities and Exchange Commission for transfer to the general fund of United 

States Treasury in accordance with Exchange Act Section 21F(g)(3).  If timely 

payment is not made, additional interest shall accrue pursuant to 31 U.S.C. § 

3717.  Payment must be made in one of the following ways:   

 



 

 

6 

(1) Respondents may transmit payment electronically to the Commission, 

which will provide detailed ACH transfer/Fedwire instructions upon 

request;  

 

(2) Respondents may make direct payment from a bank account via Pay.gov 

through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or  

 

(3) Respondents may pay by certified check, bank cashier’s check, or United 

States postal money order, made payable to the Securities and Exchange 

Commission and hand-delivered or mailed to:  

 

Enterprise Services Center 

Accounts Receivable Branch 

HQ Bldg., Room 181, AMZ-341 

6500 South MacArthur Boulevard 

Oklahoma City, OK 73169 

 

Payment by check or money order must be accompanied by a cover letter 

identifying CIP and CA as Respondents in these proceedings, and the file 

number of these proceedings; a copy of the cover letter and check or money 

order must be sent to Stephen E. Donahue, Assistant Regional Director, 

Asset Management Unit, Division of Enforcement, Securities and Exchange 

Commission, 950 E. Paces Ferry Rd., NE, Suite 900, Atlanta, GA  30326-

1382. 

 

By the Commission. 

 

 

 

Brent J. Fields  

Secretary