SEC sues investment bank principals

The U.S. Securities and Exchange Commission (SEC) has sued a Fairfield resident for allegedly concealing his work for a boutique investment bank, after he was censured several years ago on allegations of insider trading.

Michael W. Crow, 46, acted as an unregistered principal of New York City-based Duncan Capital L.L.C., the SEC alleges, a firm owned by New Rochelle resident Robert D. Fuchs, 56, who is also a defendant.

Crow was chairman and president of Wilshire Technologies Inc., where the SEC alleged Crow avoided $1.2 million in losses by trading Wilshire stock while having access to nonpublic information regarding the accuracy of the California company”™s financial statements. In 2002, Crow unsuccessfully appealed a court order barring him from serving as an officer in a public company.

Duncan Capital raised more than $100 million for 20 companies via private investments in public equity (PIPE) of small-cap companies. For its services, Duncan Capital received cash compensation of $3.3 million and stock compensation worth at least $2 million, the SEC claims, with most of the proceeds going to entities set up by Crow.

Crow and Fuchs did not immediately file a statement in court, and could not be reached for comment.