UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 79440 / December 1, 2016 

ADMINISTRATIVE PROCEEDING

File No. 3-14854

In the Matter of 

GMB Capital Management LLC (currently 

known as “Clearstream Investments 

LLC”), GMB Capital Partners LLC, 

Gabriel Bitran and Marco Bitran,

Respondents. 

ORDER APPROVING PLAN OF 

DISTRIBUTION AND 

AUTHORIZING TRANSFER OF

FAIR FUND

On April 20, 2012, the Commission issued an Order Instituting Administrative and 

Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C 

of the Securities Exchange Act of 1934, Section 9(b) of the Investment Company Act of 1940, 

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

Findings, and Imposing Remedial Sanctions and Cease-and-Desist Order (“Order”)1 against 

GMB Capital Management LLC (currently known as “Clearstream Investments, LLC”) (“GMB 

Management”), GMB Capital Partners, LLC (“GMB Partners”), Gabriel Bitran and Marco Bitran 

(collectively, the “Respondents”). The Order found that in 2005, Gabriel Bitran founded GMB 

Capital Management LLC for the stated purpose of managing hedge funds using quantitative 

models he developed, based on his academic optimal pricing research, to trade primarily in 

exchange traded funds (“ETFs”). According to the Order, Gabriel Bitran and Marco Bitran 

solicited potential investors with three primary selling points: (1) very successful performance 

track records purportedly based on actual trades using real money from 1998 to the inception of 

the hedge funds; (2) the firm’s use of Gabriel Bitran’s proprietary optimal pricing model to trade 

ETFs; and (3) Gabriel Bitran’s pedigree and his involvement as the founder and portfolio

manager of the hedge funds. Over a period of three years, raising over $500 million for eight 

hedge funds and various managed accounts, Respondents made misrepresentations to investors 

about each of these selling points, and at times, all three of them. 

As a result of this misconduct, the Order found the Respondents willfully violated 

Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities 

Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, Section and 206(4) of the 

Investment Advisers Act of 1940 (“Advisers Act”) and Rule 206(4)-8 thereunder; GMB 

Management, Gabriel Bitran and Marco Bitran willfully violated Sections 206(1) and 206(2) of 

 1

 Securities Act Rel. No. 9315 (Apr. 20, 2012).
2

the Advisers Act; GMB Management willfully violated Section 204(a) of the Advisers Act and 

Rule 204-2(a)(16) thereunder; and, Gabriel Bitran and Marco Bitran willfully aided and abetted 

and caused GMB Management’s and/or GMB Partners’ violations of Section 17(a) of the 

Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 

204(a), 206(1), 206(2) and 206(4) of the Advisers Act and Rule 204-2(a)(16) and 206(4)-8 

thereunder. The Order required Respondents to pay a total of $4,800,000 in disgorgement and 

civil money penalties to the Commission and created a Fair Fund pursuant to Section 308(a) of 

the Sarbanes-Oxley Act of 2002, as amended. Pursuant to the Order, the Respondents paid the 

sums as ordered by the Commission, which is currently on deposit with the United States 

Department of the Treasury (the “Fair Fund”).

On October 21, 2016, the Commission issued a Notice of Proposed Plan of Distribution 

and Opportunity for Comment (“Notice”)2 pursuant to Rule 1103 of the Commission’s Rules on 

Fair Fund and Disgorgement Plans (“Rules”).

3

 The Notice advised interested persons that they 

could obtain a copy of the proposed plan of distribution (“Distribution Plan”) from the 

Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm or by submitting a 

written request to Adriene Mixon, Esq., United States Securities and Exchange Commission, 444 

South Flower Street, Suite 900, Los Angeles, CA 90071. 

The Notice also advised that all persons desiring to comment on the Distribution Plan 

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

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 email to rulecomments@sec.gov. The Commission received no comments on the Distribution Plan.

The Distribution Plan proposes to transfer the Fair Fund, plus any accrued interest, less 

any outstanding taxes and fees, pursuant to Rule 1102(a) of the Rules,4 to the court registry 

account established in the related criminal action, United States v. Bitran, No. 14-cr-10243-

MLW (D. Mass. 2014) (the “Criminal Action”), for distribution to harmed investors in 

accordance with the criminal restitution process in the Criminal Action. The Commission finds 

that the allegations in the Criminal Action arise from the same conduct by Gabriel Bitran, Marco 

Bitran, and their company, GMB Capital Management LLC, as alleged in the Commission’s 

Order and span the same relevant time period. Under these circumstances, the Division of 

Enforcement has concluded that transferring the funds to the Criminal Action for distribution 

through the criminal restitution process is fair and reasonable because it employs a more efficient 

use of resources to benefit investors harmed as a result of the Respondents’ misconduct than 

would two separate distribution processes. 

 The Division of Enforcement therefore now requests that the Commission approve the 

Distribution Plan as published and authorize the transfer of funds to the Criminal Action.

 2

 Exchange Act Rel. No. 79139 (Oct. 21, 2016). 3

 17 C.F.R. § 201.1103. 4

 17 C.F.R. § 201.1102(a).
3

Accordingly, it is hereby ORDERED that:

A. Pursuant to Rule 1104 of the Rules, 17 C.F.R. § 201.1104, the Distribution Plan is 

approved; and 

 

B. Pursuant to Rule 1102(a) of the Rules, 17 C.F.R. §201.1102(a), the Commission 

staff shall transfer the Fair Fund in the amount of $4,800,000, plus any accrued 

interest, less any outstanding taxes and fees to the Court Registry Investment 

System account established in the Criminal Action for distribution to harmed 

investors.

By the Commission. 

Brent J. Fields

Secretary