Detwiler, Mitchell & Co. Announces Receipt of Claim
March 31 2005 - 9:02PM
PR Newswire (US)
Detwiler, Mitchell & Co. Announces Receipt of Claim BOSTON,
March 31 /PRNewswire-FirstCall/ -- Detwiler, Mitchell & Co.
(OTC Pink Sheets: DMCD) announced that the Company's wholly owned
subsidiary, Detwiler, Mitchell, Fenton & Graves, Inc. ("DMFG"),
received a written notice of claim under DMFG's Financial
Institution Bond (the "Notice of Claim") from the receiver (the
"Receiver") for the estate of Bradford Bleidt, a former independent
financial planner who is under investigation by the Securities and
Exchange Commission. As previously reported, DMFG is responding to
inquiries and subpoenas regarding various regulatory proceedings
against Bleidt and the SEC registered investment advisor firms
owned by him. The proceedings allege fraudulent transactions
occurred at his companies before, during and after Bleidt was an
NASD registered representative of DMFG. The Notice of Claim
purports to invoke DMFG's insurers in responding to $15.6 million
of alleged losses incurred by customers of Bleidt's investment
advisory firms during the period from October 9, 2001 through
February 11, 2004 when he was registered with DMFG. As these
investigations and proceedings are only at a preliminary stage, the
Company is unable to predict the outcome of these matters. The
Company intends vigorously to pursue the defense of DMFG and
strongly objects to the allegations in the Notice of Claim. At the
same time, the Company's insurers have not acknowledged coverage
for the alleged acts. Should the Company be unable to achieve a
favorable result with respect to these matters, its financial
position, results of operations and cash flows could be materially
impacted. Detwiler, Mitchell & Co. ("DMC") is the holding
company for its two principal operating subsidiaries: Detwiler,
Mitchell, Fenton & Graves, Inc., a channel research,
institutional sales and private client group broker/dealer
headquartered in Boston, MA; James Mitchell & Co., a financial
services company headquartered in San Diego, CA. For more
information on DMC, please go to our website at
http://www.dmcos.com/. Cautionary Statement Regarding
Forward-Looking Statements: Certain statements in this news release
may contain forward-looking statements within the meaning of the
Federal securities laws. Such statements should be considered in
light of the risks and uncertainties associated with Detwiler,
Mitchell & Co. and its operating subsidiaries, including those
economic and market risks contained in the Company's Annual and
Quarterly Reports and other risks prevailing from time to time; all
of which are subject to material changes and may cause actual
results to vary materially from what had been anticipated.
DATASOURCE: Detwiler, Mitchell & Co. CONTACT: James Mitchell,
Chairman and CEO, +1-617-747-0180, or Stephen Martino, CFO,
+1-617-747-0154, both of Detwiler, Mitchell & Co. Web site:
http://www.dmcos.com/
Copyright