[Federal Register Volume 59, Number 151 (Monday, August 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19212]


[[Page Unknown]]

[Federal Register: August 8, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20436; 811-4829]

 

Treasury First Inc.; Notice of Application

August 2, 1994.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Deregistration under the Investment 
Company Act of 1940 (the ``Act'').

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APPLICANT: Treasury First Inc.

RELEVANT ACT SECTION: Section 8(f).

SUMMARY OF APPLICATION: Applicant requests an order declaring that it 
has ceased to be an investment company.

FILING DATE: The application was filed on May 19, 1994 and amended on 
July 27, 1994.

HEARING OR NOTIFICATION OF HEARING: An order granting the application 
will be issued unless the SEC orders a hearing. Interested persons may 
request a hearing by writing to the SEC's Secretary and serving 
applicant with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on August 29, 1994, 
and should be accompanied by proof of service on applicant, in the form 
of an affidavit or, for lawyers, a certificate of service. Hearing 
requests should state the nature of the writer's interest, the reason 
for the request, and the issues contested. Persons may request 
notification of a hearing by writing to the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 5th Street, NW., Washington, DC 20549. 
Applicant, c/o Edward S. Gelfand, Special Officer, Friedman & Phillips, 
10920 Wilshire Boulevard, Suite 650, Los Angeles, CA 90024.

FOR FURTHER INFORMATION CONTACT:
Elaine M. Boggs, Staff Attorney, at (202) 942-0572, or Robert A. 
Robertson, Branch Chief, at (202) 942-0564 (Division of Investment 
Management, Office of Investment Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee at the 
SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant is an open-end management investment company organized 
as a Maryland corporation. On September 4, 1986, applicant registered 
under the Act as an investment company. On May 19, 1987, applicant 
filed a registration statement to register its shares under the 
Securities Act of 1933. The registration statement was declared 
effective on June 1, 1987, and the initial public offering commenced on 
the same day.
    2. On November 1, 1991, the SEC filed a civil suit against 
applicant, applicant's adviser, Cheshire Hall Advisors, Inc., (the 
``Adviser''), and an affiliate of the Adviser, John T. Hall, in the 
United States District Court, Central District of California alleging 
various violations of the federal securities laws. The SEC alleged, 
among other things, that Hall, through the Adviser, misappropriated 
approximately $2.1 million from applicant. This amount represented 
approximately 75% of applicant's assets at the time of the alleged 
misappropriation.
    3. On November 14, 1991, the Court issued an order that authorized 
the appointment of Edward S. Gelfand as Special Officer of applicant 
and the Adviser for the purpose of supervising and directing the 
liquidation of applicant and the Adviser as well as the deregistration 
of applicant under the Act.\1\
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    \1\On the same date, the Court entered an injunction against the 
Adviser and Hall permanently enjoining them from future violations 
of the securities laws.
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    4. As a result of the above action, applicant and the Adviser 
ceased doing business. In November 1991, the Special Officer had 
control of $2,814,674.78 of applicant's assets. Of this amount, 
$2,664,674.78 was distributed to applicant's five shareholders pro 
rata. The remaining $150,000 was placed in a bank account maintained by 
the Special Officer to be used for expenses incurred on applicant's 
behalf in connection with the winding up of applicant's affairs. These 
expenses are expected to total approximately $95,570. Compensation and 
expenses of the Special Officer is expected to be approximately $35,019 
and compensation and expenses of applicant's accountant is expected to 
be approximately $60,551. Any funds remaining in the account after 
payment of applicant's expenses will be distributed pro rata among 
applicant's shareholders. The money held in the bank account has not 
been and will not be invested in securities.
    5. On March 24, 1992, the Special Officer submitted a claim against 
a bond issued by Reliance Insurance Company to applicant.\2\ In the 
event of a recovery, the proceeds will be distributed to applicant's 
shareholders pro rata.
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    \2\The bond was issued by Reliance in the amount of $300,000 to 
cover losses resulting from, among other things, dishonest or 
fraudulent acts committed by an employee of applicant. By letter 
dated December 9, 1992, Reliance denied the claim but, nonetheless, 
requested additional information to evaluate the claim. The Special 
Officer is further evaluating the bond and the merits of a claim.
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    6. The Special Officer is not aware of any liabilities other than 
the amounts to be paid to the Special Officer and applicant's 
accountants and those set forth in an audited financial statement 
prepared in 1991 by applicant's accountants.
    7. Applicant will file certificates of dissolution with Maryland 
authorities after winding up its affairs.
    8. Applicant is not now engaged, nor does it propose to engage, in 
any business activities other than those necessary for the winding up 
of its affairs.


    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-19212 Filed 8-5-94; 8:45 am]
BILLING CODE 8010-01-M