NASD Hearing Panel Dismisses Complaint Against Win Capital, Two Officers
Washington, D.C.—An NASD Hearing Panel has dismissed a June, 2003 complaint charging Win Capital Corp. of Long Island, NY and two of its officers with securities fraud in connection with a hedge fund offering.
NASD's Enforcement Department had charged Win Capital, acting through then-Chairman Steven J. Bayern and then-President Patrick M. Kolenick, with failing to disclose certain material facts to investors in a hedge fund the two men had formed. They raised approximately $1 million by selling limited partnership interests in the hedge fund to 12 investors.
At issue in the hearing was Bayern's and Kolenik's failure to disclose to those investors that of the approximately $1 million raised, $700,000 was used to provide a loan to a business colleague. The hearing panel concluded that NASD Enforcement had failed to prove that the disclosure omissions were material. The panel also found no evidence that the respondents intended to deceive investors.
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