This customer wrote that the arbitration award that he received did not fully compensate him for his losses as a result of the Respondent's misconduct. In order to evaluate the comments received, the Division of Enforcement obtained follow-up submissions from Hanauer, and reviewed statements of claim, submissions, and other materials filed in connection with relevant National Association of Securities Dealers arbitration proceedings. Upon consideration of the comments received and the Division of Enforcement's analysis, the Commission finds that the Division's proposed Plan is fair and reasonable, and should be approved. First, there is no direct record evidence that Hanauer's payments to the former customers comprised a return of any of the Respondent's net commissions. Nor does the record suggest any clear methodology that can be clearly and equitably applied for imputing to the payments some amount of return of commissions.
Similar problems affect other possible approaches to distribution of the available funds.
A pro rata distribution offers at least as much overall equity as other possible approaches. A pro rata distribution also does not negatively affect investors who timely pursued their private claims. By the Commission. 2 Amounts reflected in this Order are at slight variance with amounts set forth in the Plan due to certain computational errors in the Plan as published.