IN THE MATTER OF KAUTILYA "TONY" SHARMA
On March 17, the Commission issued an Order Instituting Administrative
Proceedings Pursuant to Section 15(b) of the Securities and Exchange
Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940,
Making Findings and Imposing Remedial Sanctions (Order) against
Kautilya "Tony" Sharma (Sharma). The Order finds the Commission sued
Sharma, president of Geek Securities, Inc. (Geek Securities), a
broker-dealer registered with the Commission, and Geek Advisors, Inc.
(Geek Advisors), an investment adviser registered with the Commission,
in the civil action entitled Securities and Exchange Commission v.
Geek Securities, Inc. et. al., Civil Action No. 04-80525-Civ-
PAINE/JOHNSON, in the United States District Court for the Southern
District of Florida, alleging Sharma engaged in pervasive market
timing and late trading on behalf of institutional clients. The
Commission also alleged that despite warnings from mutual fund
companies Sharma and others used various deceptive activities to evade
detection of ongoing market timing and accepted final trade
instructions after the 4:00 p.m. EST closing of the market, knowing
that the trades received the same-day NAV pricing. On February 9,
2006, a final judgment in the civil case was entered by consent
against Sharma, permanently enjoining him from future violations of
Section 17(a) of the Securities Act of 1933, Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder, and from aiding and abetting
violations of Section 15(c)(1) of the Exchange Act.
Based on the above, the Order bars Sharma from association with any
broker, dealer, or investment adviser. Sharma consented to the
issuance of the Order without admitting or denying any of the findings
in the Order. (Rels. 34-53507; IA-2498; File No. 3-12241)
AI
