| UNITED STATES OF AMERICA | |
| Before the | |
| SECURITIES AND EXCHANGE COMMISSION | |
| INVESTMENT ADVISERS ACT OF 1940 | |
| Release No. 5723 / April 19, 2021 | |
| ACCOUNTING AND AUDITING ENFORCEMENT | |
| Release No. 4210 / April 19, 2021 | |
| ADMINISTRATIVE PROCEEDING | |
| File No. 3-20263 | |
| In the Matter of | |
| Martin Silver, CPA | |
| Respondent. | |
| ORDER INSTITUTING | |
| ADMINISTRATIVE PROCEEDINGS | |
| PURSUANT TO SECTION 203(f) OF THE | |
| INVESTMENT ADVISERS ACT OF 1940 AND | |
| RULE 102(e)(2) OF THE COMMISSION’S | |
| RULES OF PRACTICE, MAKING FINDINGS, | |
| AND IMPOSING REMEDIAL SANCTIONS | |
| I. | |
| The Securities and Exchange Commission (“Commission”) deems it appropriate and in the | |
| public interest that public administrative proceedings be, and hereby are, instituted pursuant to | |
| Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Martin Silver | |
| (“Respondent”). The Commission also deems it appropriate to issue an order of forthwith | |
| suspension of Respondent pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice [17 | |
| C.F.R. § 201.102(e)(2)].1 | |
| II. | |
| In anticipation of the institution of these proceedings, Respondent has submitted an Offer of | |
| Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of | |
| these proceedings and any other proceedings brought by or on behalf of the Commission, or to which | |
| the Commission is a party, Respondent admits the Commission’s jurisdiction over him and the | |
| 1 Rule 102(e)(2) provides in pertinent part: “Any…person who has been convicted of a felony or a | |
| misdemeanor involving moral turpitude shall be forthwith suspended from appearing or practicing before the | |
| Commission.” | |
| 2 | |
| subject matter of these proceedings, and the findings contained in paragraphs III(2) and (4) below, | |
| and consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section | |
| 203(f) of the Investment Advisers Act of 1940 and Rule 102(e)(2) of the Commission’s Rules of | |
| Practice, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below. | |
| III. | |
| On the basis of this Order and Respondent’s Offer, the Commission finds that: | |
| 1. Silver was the founder, chief operating officer, and a fifty-percent owner of | |
| International Investment Group, LLC (“IIG”), a New York-based former registered investment | |
| adviser. Silver has been a certified public accountant licensed in the State of New York. | |
| 2. On April 16, 2021, a judgment was entered by consent against Silver, permanently | |
| enjoining him from future violations of Sections 206(1) and 206(2) of the Advisers Act, Section | |
| 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and | |
| Rule 10b-5 thereunder in the civil action entitled Securities and Exchange Commission v. Martin | |
| Silver, Civil Action Number 21-cv-3179 (DLC), in the United States District Court for the | |
| Southern District of New York. | |
| 3. The Commission’s complaint alleged that Silver engaged in a scheme to defraud | |
| IIG’s investment advisory clients. Specifically, the complaint alleged that Silver concealed losses | |
| in the portfolio of its flagship hedge fund by overstating the value of certain defaulted trade finance | |
| loans and by replacing defaulted loans with fake loans. In addition, the complaint alleged that IIG | |
| engaged in a pattern of selling overvalued and/or fake trade finance loans to other investment | |
| advisory clients in order to generate liquidity to meet various payment obligations of the fund, | |
| including redemption requests from earlier investors. | |
| 4. On April 13, 2021, Silver pleaded guilty to one count of securities fraud (15 U.S.C. | |
| § 78j(b) and 78ff; 17 C.F.R. § 240.10b-5), one count of wire fraud (18 U.S.C. §§ 1343 and 2), and | |
| one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud (18 | |
| U.S.C. § 371) in United States v. Martin Silver, Crim. No. 20-cr-360 (AKH) (S.D.N.Y.). | |
| 5. The count of the criminal information to which Silver pled guilty alleged, inter alia, | |
| that Silver engaged in a pattern of selling overvalued and/or fake trade finance loans to investment | |
| advisory clients in order to generate liquidity to meet various payment obligations, including | |
| redemption requests from earlier investors, and that Silver used the mails and other means and | |
| instrumentalities of interstate commerce to execute his scheme. | |
| 3 | |
| IV. | |
| In view of the foregoing, the Commission deems it appropriate and in the public interest to | |
| impose the sanctions agreed to in Respondent Silver’s Offer. | |
| Accordingly, it is hereby ORDERED pursuant to Section 203(f) of the Advisers Act, that | |
| Respondent Silver be, and hereby is barred from association with any investment adviser, broker, | |
| dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized | |
| statistical rating organization. | |
| Any reapplication for association by the Respondent will be subject to the applicable laws | |
| and regulations governing the reentry process, and reentry may be conditioned upon a number of | |
| factors, including, but not limited to, compliance with the Commission’s order and payment of any | |
| or all of the following: (a) any disgorgement or civil penalties ordered by a Court against the | |
| Respondent in any action brought by the Commission; (b) any disgorgement amounts ordered | |
| against the Respondent for which the Commission waived payment; (c) any arbitration award | |
| related to the conduct that served as the basis for the Commission order; (d) any self-regulatory | |
| organization arbitration award to a customer, whether or not related to the conduct that served as | |
| the basis for the Commission order; and (e) any restitution order by a self-regulatory organization, | |
| whether or not related to the conduct that served as the basis for the Commission order. | |
| In view of the foregoing, the Commission also finds that Respondent has been convicted of | |
| a felony within the meaning of Rule 102(e)(2) of the Commission’s Rules of Practice. | |
| Accordingly, it is hereby ORDERED that Respondent Silver is forthwith suspended from | |
| appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission’s | |
| Rules of Practice. | |
| By the Commission. | |
| Vanessa A. Countryman | |
| Secretary | |