Value Line’s $24 million Fraud Scheme ends after almost 20 years

November 10th, 2009
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Last week the SEC charged Value Line Inc., an affiliated broker-dealer Value Line Securities (VLS), and two of Value Line’s senior officers with defrauding the firm’s family of mutual funds. Value Line’s CEO Jean Buttner and its former Chief Compliance Officer David Henigson have both settled the charged by consenting to the entry of a cease-and-desist order, though they have neither admitted to nor denied the SEC’s charges.

The Commission found that Value Line had been redirecting portions of the funds’ securities trades to VLS from 1986 until 2004 and that Buttner and Henigson overall received “over $24 million in bogus brokerage commissions from the funds pursuant to this scheme, as VLS did not perform any bona fide brokerage services for the funds on these trades.”

According to the SEC’s press release, Value Line, Buttner and Henigson further misrepresented VLS’s “phantom brokerage services” to Value Line’s shareholders, the Independent Directors/Trustees, and the SEC.
See Press Release
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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2 Comments

by John Doe - Oops on February 17th, 2010

Darn, I think Buttner and her attorney Irwin Echtman have already sued John Doe, Yahoo, Microsoft. "What goes around comes around" - how true! Is this gonna make CNBC American Greed?

by Jane Doe on February 7th, 2010

What goes around comes around. So sad, that she has disgraced her fathers legacy. How she treated employees was dispicable and after reading the article about how she treated Sam Eisenstadt, Chief Statitician makes me sick to my stomach. She should choke on her words that she once said about her twin brother Van, "one more chapter in a series of frivolous litigations commenced by Van Bernhard to harass the family business interest built successfully by others. Sadly, my brother cocntinues to hire lawyers to attack the very corporate structure created by his father that has always supported him and protected the family interest." Look who's calling the kettle black Jean Buttner. Apologise to your brother.


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