The SEC on March 30 announced that G. Steven Burrill and hisfirm Burrill Capital Management LLChave agreed to settle charges that Burrill stole investor funds to prop up otherstruggling businesses he owned and finance his lavish lifestyle.
Burrill and Burrill Capital Management agreed to the disgorgementof about $4.8 million in investor money he stole for personal use plus a $1 millionpenalty. Burrill also agreed to be permanently barred from the securities industry.
An SEC investigation found that Burrill concealed from investorsthat he took money from the Burrill Life Sciences Capital Fund III under the guiseof advanced management fees and spent it on family vacations as well as jewelry,gifts, car service and private jets. The fund's investors included state pensionfunds, public companies and other institutional investors.
The SEC's order instituting a settled administrative proceedingalso found that Victor Hebert, chief legal officer of the firm, and Helena Sen,controller, played integral roles in the scheme. Hebert and Sen agreed to settlethe charges by paying penalties of $185,000 and $90,000, respectively. They alsoare barred from the securities industry.
Burrill and his firm, Hebert, and Sen agreed to the settlementswithout admitting or denying the findings in the SEC's order. In addition to theirindustry bars, Burrill, a former audit partner, and Sen are permanently suspendedfrom appearing and practicing before the SEC as accountants, which includes notparticipating in the financial reporting or audits of public companies. Hebert waspermanently suspended from appearing and practicing before the SEC as an attorney.