and his team are not taking the SEC
's accusations lying down. On Tuesday Bent's Reserve Management Company
revealed that it had filed a motion to dismiss the fraud charges the regulatory agency leveled against Reserve last month.
For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.
"We are unaware of any precedent for such charges in the 75-year history of the federal securities," the Reserve stated in its motion.
An SEC spokesman countered by telling the Wall Street Journal
's Aja Carmichael
that the regulators "stand by the allegations in our complaint and are committed to fair and expeditious resolution on behalf of investors in the fund."
Company Press Release
NEW YORK, NY, June 23, 2009 – On June 11, 2009, Reserve Management Company, Inc., Resrv Partners, Inc., Bruce Bent Sr. and Bruce Bent II filed a Motion to Dismiss the civil action brought by the SEC in the United States District Court for the Southern District of New York (SEC v. Reserve Management Company, Inc., et al.; No. 09-CV-4346). The Motion and the Memorandum of Law supporting the Motion, set forth the reasons as to why the Motion to Dismiss should be granted. Click here to view a copy of these pleadings.
Reserve Management Company, Inc. and the other defendants are cooperating fully with the SEC's staff regarding this matter, but, at the same time, are vigorously defending themselves in this action.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Money market yields may vary.
Resrv Partners, Inc., Distributor. Member FINRA. 06/09
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