UNITED STATES OF AMERICA

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 102913 / April 22, 2025

ADMINISTRATIVE PROCEEDING

File No. 3-17614

In the Matter of

Laurence I. Balter d/b/a Oracle

Investment Research,

Respondent.

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ORDER AUTHORIZING THE TRANSFER TO

THE U.S. DEPARTMENT OF THE TREASURY

OF THE REMAINING FUNDS AND ANY FUNDS

RETURNED TO THE FAIR FUND IN THE

FUTURE, DISCHARGING THE FUND

ADMINISTRATOR, CANCELING THE

ADMINISTRATOR’S BOND, AND

TERMINATING THE FAIR FUND

On May 26, 2017, the Commission issued an Order Making Findings, and Imposing

Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act

of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(f) and 203(k) of the

Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of

1940 (the “Order”)1 settling previously instituted cease-and-desist proceedings against Laurence

I. Balter d/b/a Oracle Investment Research (the “Respondent”). In the Order, the Commission

found that the Respondent, a former registered investment adviser to the Oracle Mutual Fund

(the “Oracle Fund”), committed multiple breaches of fiduciary duty and violations of the

antifraud provisions of the federal securities laws from January 2011 to April 2014. The

Commission found that the Respondent: (a) fraudulently allocated profitable trades to his own

accounts to the detriment of several client accounts; (b) falsely told his clients who invested in

the Oracle Fund that they would not pay both advisory fees and management fees for the

portions of their accounts invested in the Oracle Fund; and (c) made trades for the Oracle Fund

that deviated from two of its fundamental investment limitations. The Commission ordered the

Respondent to pay $489,921.00 in disgorgement, plus $10,079.00 in prejudgment interest, and a

$50,000.00 civil money penalty, for a total of $550,000.00, 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 collected, along with the disgorgement and prejudgment interest collected,

could be distributed to harmed investors (the “Fair Fund”).

The Respondent paid a total of $550,000.00 pursuant to the Order, comprising the Fair

Fund. The Fair Fund was deposited in a Commission-designated account at the U.S. Department

of the Treasury (the “Treasury”), and any accrued interest was added to the Fair Fund.

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Securities Act Rel. No. 10367 (May 26, 2017).

On April 15, 2021, the Division of Enforcement, pursuant to delegated authority, issued

an order appointing DST Asset Manager Solutions, Inc. n/k/a SS&C Global Investor and

Distribution Solutions, Inc. as the Fund Administrator of the Fair Fund and set the

administrator’s bond amount.2

On December 29, 2021, the Division of Enforcement, pursuant to delegated authority,

published a Notice of Proposed Plan of Distribution and Opportunity for Comment (“Notice”),3

pursuant to Rule 1103 of the Commission’s Rules on Fair Fund and Disgorgement Plans (the

“Commission’s Rules”);4 and simultaneously posted the Proposed Plan of Distribution (the

“Proposed Plan”). The Notice advised interested persons that they could obtain a copy of the

Proposed Plan from the Commission’s public website or by submitting a written request to David

H. London, United States Securities and Exchange Commission, 33 Arch Street, 24th Floor,

Boston, MA 02110. The Notice also advised that all persons desiring to comment on the

Proposed Plan could submit their comments, in writing, within 30 days of the Notice. The

Commission received a comment on the Proposed Plan during the comment period. On May 5,

2022, after review and consideration, the Commission issued an order approving the Proposed

Plan without modification,5 and posted the approved Plan of Distribution (the “Plan”).

The Plan set forth a methodology for allocating the Fair Fund, plus any accrued interest,

less taxes, fees, and expenses, to compensate investors for their losses between January 2011 and

April 2014 due to the Respondent’s cherry-picking scheme; and/or misrepresentation of

management fees. Any remaining funds following distribution to harmed investors that are

infeasible to return to investors are to be transferred to the Treasury and the Fair Fund

terminated, subject to the Commission’s approval of the Fund Administrator’s final accounting.

As ordered by the Commission, the Fund Administrator distributed a total of $463,295.94

from the Fair Fund, pursuant to the Plan.6 Of this amount $463,069.58 was successfully

disbursed and cashed by recipient investors resulting in 60 harmed investors being compensated

for 46.67% of their losses.

The Fair Fund earned $37,429.02 in interest; and paid state and federal taxes of

$7,091.00, investment/bank fees of $57.40, fund administration expenses of $71,313.92 and tax

administration expenses of $16,584.12. The Fair Fund currently holds $29,313.00, which is

comprised of $226.36 in undeliverable and uncashed checks, and $29,086.64 in accumulated

interest and excess funds.

Pursuant to the Plan, the Fair Fund is eligible for termination and the Fund Administrator

discharged after all of the following have occurred: (a) the final accounting has been submitted

by the Fund Administrator for approval, and has been approved by the Commission; (b) all taxes,

Order Appointing Fund Administrator and Setting Administrator’s Bond Amount, Exchange Act Rel. No. 91570

(Apr. 15, 2021).

3

Exchange Act Rel. No. 93872 (Dec. 29, 2021).

4

17 C.F.R. § 201.1103.

5

See Order Approving Plan of Distribution, Exchange Act Rel. No. 94857 (May 5, 2022).

6

Exchange Act Rel. No. 97083 (Mar. 8, 2023).

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fees and expenses have been paid; and (c) any amount remaining in the Fair Fund has been

received by the Commission for transfer to the Treasury.

The Commission staff has confirmed that the Fund Administrator has completed the

distribution process in accordance with the Commission’s orders, that all taxes, fees and

expenses have been paid, and that all monies remaining in the Fair Fund have been received by

the Commission. The final accounting, which was submitted to the Commission for approval, as

required by Rule 1105(f) of the Commission’s Rules, 17 C.F.R. § 201.1105(f), and as set forth in

the Plan, has been approved.

Accordingly, it is ORDERED that:

A.

the remaining funds that are infeasible to return to investors, in the amount of

$29,313.00, and any funds returned to the Fair Fund in the future that are

infeasible to return to investors, shall be transferred to the Treasury, subject to

Section 21F(g)(3) of the Securities Exchange Act of 1934;

B.

the Fund Administrator, DST Asset Manager Solutions, Inc., n/k/a SS&C Global

Investor and Distribution Solutions, Inc., is discharged;

C.

the Fund Administrator’s bond is canceled; and

D.

the Fair Fund is terminated.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.7

Vanessa A. Countryman

Secretary

7

17 C.F.R. § 200.30-4(a)(21)(vii).

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