UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 98119 / August 14, 2023

ADMINISTRATIVE PROCEEDING

File No. 3-20880

In the Matter of

Kahn Brothers Advisors, LLC and 

Thomas Kahn,

Respondents.

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NOTICE OF PROPOSED PLAN OF 

DISTRIBUTION AND 

OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the United States Securities and 

Exchange Commission’s (the “Commission”) Rules on Fair Fund and Disgorgement Plans (the 

“Commission’s Rules”), 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted 

to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of 

monies paid in the above-captioned matter.

On June 6, 2022, the Commission issued an Order Instituting Administrative and Ceaseand-Desist Proceedings, Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and 

Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940, Making Findings, 

and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”)1against Kahn 

Brothers Advisors, LLC (“KIA”) and Thomas Kahn (“Kahn”) (collectively, the “Respondents”). 

In the Order, the Commission found that registered investment adviser KIA and its principal 

owner and president, Kahn, made misstatements and omitted information in statements to KIA’s 

advisory clients and prospective clients relating to brokerage services provided by KIA’s 

affiliated broker-dealer, Kahn Brothers LLC (“KBD”). Specifically, the Commission found KIA 

and Kahn (a) failed to fully and fairly disclose to advisory clients all material facts related to the 

conflict that arose from KIA’s use of an affiliated broker-dealer to execute client transactions; 

and (b) made misleading statements to clients and prospective clients that KIA would aggregate 

client transactions to reduce commissions. According to the Order, KIA and Kahn also failed to 

seek best execution for advisory clients, failed to conduct a best execution review of KBD, and 

failed to adopt and implement written policies and procedures reasonably designed to prevent 

violations of the Investment Advisers Act of 1940 and the rules promulgated thereunder. 

According to KIA’s policies and procedures, Kahn was responsible for all aspects of KIA’s 

compliance program and its implementation, as well as the firm’s disclosure obligations. The 

 

1

 Exchange Act Rel. No. 95045 (June 6, 2022).
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Commission ordered the Respondents to pay $701,799.00 in disgorgement, $146,100.00 in 

prejudgment interest, and a $250,000.00 civil money penalty, for a total of $1,097,899.00, to the 

Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, 

can be distributed to harmed investors (the “Fair Fund”).

The Fair Fund includes the $1,097,899.00 paid by the Respondents. The assets of the 

Fair Fund are subject to the continuing jurisdiction and control of the Commission. The Fair 

Fund has been deposited in a Commission-designed account at the U.S. Department of the 

Treasury, and any interest accrued will be added to the Fair Fund.

OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested persons are advised that they may obtain a copy of 

the Plan from the Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm. 

Interested persons may also obtain a written copy of the Proposed Plan by submitting a written 

request to Sondra Panahi, United States Securities and Exchange Commission, 801 Brickell Ave, 

Suite 1950, Miami, FL 33131. All persons who desire to comment on the Proposed Plan may 

submit their comments, in writing, no later than thirty (30) days from the date of this Notice:

1. to the Office of the Secretary, United States Securities and Exchange Commission, 100 F 

Street, NE, Washington, DC 20549-1090;

2. by using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include “Administrative 

Proceeding File No. 3-20880” in the subject line. Comments received will be publicly available. 

Persons should submit only information they wish to make publicly available.
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THE PROPOSED PLAN

The Net Available Fair Fund2is comprised of the $1,097,899.00 in disgorgement, 

prejudgment interest, and civil money penalties paid by the Respondents, plus any interest and 

income earned thereon, less Administrative Costs. The Proposed Plan provides for the 

distribution of the Net Available Fair Fund to investors who were harmed by the Respondents’ 

conduct described in the Order and suffered losses resulting from excess commissions paid for 

brokerage services provided by KIA’s affiliated broker-dealer, KBD, from March 1, 2015 

through March 31, 2020, inclusive, due to the Respondents’ failure to direct KBD to aggregate 

their advisory clients’ transactions. 

For the Commission, by the Division of Enforcement, pursuant to delegated authority.3

Vanessa A. Countryman

Secretary 

 

2

 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Proposed 

Plan.

3

 17 C.F.R. § 200.30-4(a)(21)(iii).