UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 96996 / February 28, 2023

ADMINISTRATIVE PROCEEDING

File No. 3-20880

In the Matter of

Kahn Brothers Advisors, LLC and 

Thomas Kahn,

Respondents.

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SECOND EXTENSION ORDER

The Division of Enforcement (“Division”) has requested an extension of time until 

August 15, 2023 to submit a Proposed Plan of Distribution under Rule 1101(a) of the 

Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1101(a).

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 misstatements and omissions made by registered investment 

adviser KIA and its principal owner and president, Kahn, to KIA 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 

 

1

 Securities Act Rel. No. 95045 (June 6, 2022). 
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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, to conduct a best execution review of KBD, and to adopt and 

implement written policies and procedures reasonably designed to prevent violation 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 firms' disclosure obligations. The 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 consists of the $1,097,899.00 paid by the Respondents. The Fair Fund has 

been deposited in a Commission-designated account at the U.S. Department of the Treasury, and 

any accrued interest will be added to the Fair Fund.

On August 16, 2022, the Division, pursuant to delegated authority, issued an order 

granting the Division an extension of time until February 28, 2023 to submit a proposed plan of 

distribution to allow staff additional time to develop the distribution methodology and prepare 

the proposed plan of distribution.2

 

2

 Extension Order, Exchange Act Rel. No. 95506 (Aug. 16, 2022).
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The Division now believes that a third-party is needed to assist with some of the 

administrative tasks associated with implementing the distribution and states additional time is 

needed to select the third-party the Division will propose to engage, finalize the distribution 

methodology, and prepare the proposed plan of distribution.

Accordingly, for good cause shown, IT IS HEREBY ORDERED that the Division’s 

request for an extension of time until August 15, 2023 to submit a Proposed Plan of Distribution 

is granted. 

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

Vanessa A. Countryman

Secretary 

 

3

 17 C.F.R. § 200.30-4(a)(21)(i).