Sihpol Indicted On Forty Counts Stemming From His Transactions At Banc Of America

State Attorney General Spitzer today announced the indictment of Theodore C. Sihpol III, a former securities broker at Banc of America Securities, LLC. The forty-count indictment charges Sihpol with criminal offenses stemming from his dealings with a hedge fund, Canary Capital Partners, from 2001 to July 2003.

The defendant appeared today before the Hon. James A.Yates in Part 31 of New York County Supreme Court at 100 Centre Street, Manhattan. The matter was adjourned for arraignment on the indictment to April 21, 2004 because the defendant's lead defense counsel was unavailable today.

The indictment charges Sihpol with seven counts of Grand Larceny in the First Degree, alleging that he stole more than a million dollars of property from each of six different mutual fund families – including the Nations Funds Trust, a mutual fund affiliated with the Bank of America. The grand larceny counts are B Felonies and, upon conviction, provide for a maximum penalty of 25 years in state prison, and a minimum sentence of three years imprisonment.

The defendant is also charged with two counts of securities fraud under the Martin Act and two counts of Scheme to Defraud under the New York Penal Law. He is further charged with 29 counts of Falsifying Business Records in connection with the falsification and destruction of order tickets for mutual fund trades. All of these charges are E Felonies and carry a maximum penalty of four years in prison.

Under rules governing consecutive sentences, the maximum penalty that could be imposed upon conviction of all counts in the indictment is 15 to 30 years in state prison.

Monetary penalties include a five thousand dollar fine for each count of the indictment, or a fine of double the amount of defendant's gain from the criminal conduct.

The charges are mere allegations, and the defendant is presumed innocent unless proven otherwise by a court of law.

Attachments:

• Indictment - PDF Format

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