UNITED STATES OF AMERICA

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 93425 / October 26, 2021

ADMINISTRATIVE PROCEEDING

File No. 3-15124

In the Matter of

David F. Bandimere,

Respondent.

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ORDER APPROVING

PLAN OF DISTRIBUTION

On November 22, 2019, the Commission settled a previously instituted cease-and-desist

proceeding by issuing an Order Making Findings and Imposing Remedial Sanctions and a Ceaseand-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and

21C of the Securities Exchange Act of 1934 (the “Order”) 1 against David F. Bandimere

(“Bandimere” or the “Respondent”). In the Order, the Commission found that between 2006 and

2010, the Bandimere violated certain antifraud provisions of the Securities Act while operating

as an unregistered broker in selling unregistered investments in IV Capital Ltd. (“IV Capital”)

and Universal Consulting Resources LLC (“UCR”), two Ponzi schemes which the Commission

brought actions against in 2011 and 2010 respectively.

The Order found that Bandimere raised at least $9.3 million from over 60 investors while

acting as an unregistered broker for these Ponzi schemes and earned transaction-based

compensation, which provided the vast majority of his income during that time period.

Bandimere initially sold IV Capital directly to investors, but then formed three LLCs to facilitate

bringing in investors for both IV Capital and UCR. Bandimere also encouraged the investment

of the investors’ retirement funds by setting up self-directed IRA accounts through a third-party

provider.

The Order further found Bandimere misled potential investors by presenting only a onesided, positive view of the IV Capital and UCR investments while failing to disclose numerous

red flags and potentially negative facts relating to those investments. Once Bandimere described

IV Capital and UCR to potential investors in a materially positive way, he was under a duty to

make fair and complete disclosure of these material red flags and negative facts. Bandimere also

1

Securities Act Rel. No. 10728 (Nov. 22, 2019).

offered and sold securities in UCR and IV Capital when no registration statement was filed or in

effect for the transactions, and no exemption applied to the registration requirements.

The Order further found that investors in Bandimere’s LLCs ultimately lost all of the

money they had invested in the UCR and IV Capital programs, other than what was paid to them

as purported returns or returns of capital, when those Ponzi schemes collapsed.

The Commission ordered Bandimere to pay $370,000.00 in disgorgement and a

$130,000.00 civil money penalty, for a total of $500,000.00, to the Commission. The

Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of

2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to

harmed investors (the “Fair Fund”). The Fair Fund includes the $500,000.00 paid by the

Respondent.

The assets of the Fair Fund are subject to the continuing jurisdiction and control of the

Commission. The Fair Fund and has been deposited in an interest-bearing account at the U.S.

Department of the Treasury’s Bureau of the Fiscal Service, and any interest accrued will be

added to the Fair Fund.

On August 31, 2021, the Division of Enforcement, pursuant to delegated authority,

published a Notice of Proposed Plan of Distribution and Opportunity for Comment (the

“Notice”)2 pursuant to Rule 1103 of the Commission’s Rules on Fair Fund and Disgorgement

Plans (“Commission’s Rules”). 3 The Notice advised interested persons that they could obtain a

copy of the Proposed Plan of Distribution (the “Proposed Plan”) from the Commission’s public

website at http://www.sec.gov/litigation/fairfundlist.htm or by submitting a written request to

Terry Miller, United States Securities and Exchange Commission, 100 F Street, NE,

Washington, DC 20549-5876.

The Notice also advised that all persons desiring to comment on the Proposed Plan could

submit their comments, in writing, no later than thirty (30) days from the publication of the

Notice (1) to the Office of the Secretary, United States Securities and Exchange Commission,

100 F Street, NE, Washington, DC 20549-1090; (2) by using the Commission’s Internet

comment form (http://www.sec.gov/litigation/admin.shtml); or (3) by sending an e-mail to rulecomments@sec.gov. The Commission received no comments on the Proposed Plan during the

comment period.

The Proposed Plan provides for the distribution of the Net Available Fair Fund4 to

investors who were defrauded by the Respondent's fraudulent conduct and suffered harm as

calculated by the Plan of Allocation used in the Proposed Plan.

The Division of Enforcement now requests that the Commission approve the Proposed

Plan.

2

Exchange Act Rel. No. 92825 (Aug. 31, 2021).

17 C.F.R. § 201.1103.

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All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Proposed

Plan.

3

Accordingly, it is hereby ORDERED, pursuant to Rule 1104 of the Commission’s Rules,5

that the Proposed Plan is approved, and the approved Plan of Distribution shall be posted

simultaneously with this order on the Commission’s website at www.sec.gov.

For the Commission, by the Division of Enforcement, pursuant to delegated authority. 6

Vanessa A. Countryman

Secretary

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6

17 C.F.R. § 201.1104.

17 C.F.R. § 200.30-4(a)(21)(iv).