Section 37 addresses larceny, embezzlement, and unlawful conversion-type offenses. 15 U.S.C. § 80a-36(b). Section 37 “embezzlement” encompasses the “fraudulent conversion of property of another by one who is already in lawful possession of it.”

Section 36(a) provides a cause of action for breach of fiduciary duty “in respect of any registered investment company.” 15 U.S.C. 80a-36(a) (emphasis added). Plaintiff Caroline Hamilton owned the Gartmore Total Return Fund and the Nationwide Fund.

............................................. 7 Payton v. County of Kane, 308 F.3d 673 (7th Cir. 2002) ..................................................................... 7 SEC v. Hasho, 784 F. Supp. 1059, 1110 (S.D.N.Y. 1992) ................................................................ 16 Wafra Leasing Corp. 1999-A-1 v. Prime Capital Corp., 247 F. Supp. 2d 987, 999 (D. Ill. 2002) ..... 5 Case3:05-cv-04518-WHA Document132 Filed09/28/06 Page3 of 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 OPPOSITION TO DEFENDANTS’ MOTION TO DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT Case No.: 05-cv-04518 (WHA) 2 STATUTES 15 U.S.C. § 80a-10(c) ........................................................................................................................ 16 15 U.S.C. § 80a-36(a) ........................................................................................................................ 11 15 U.S.C. § 80a-36(b) ................................................................................................................ 8, 9, 11 15 U.S.C. § 80a-48(a) .......................................................................................................................... 2 OTHER AUTHORITIES S. Rep. No. 91-184, at 15 (May 21, 1969)........................................................................................... 9 RULES Fed. R. Civ. P. 12(g) ............................................................................................................................ 3 Fed. R. Civ. P. 12(h) ............................................................................................................................ 4 TREATISES 5C Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1384 (3rd ed. 2004).

See 15 U.S.C. § 80a-35. Section 36(b) of the ICA provides: “An action may be brought under this subsection . . . by a security holder of such registered investment company on behalf of such company.” 15 U.S.C. § 80a-36(b) (emphasis added). Section 36(a) provides a cause of action for Case 1:05-cv-10062-DPW Document 24 Filed 05/26/2005 Page 5 of 21 00004888.WPD ; 1 5 breach of fiduciary duty “in respect of any registered investment company.” 15 U.S.C. § 80a-36(a) (emphasis added). Plaintiff is an investor in the John Hancock Small Cap Fund, which is a mutual fund within a series of funds issued by the investment company John Hancock Investment Trust II.

To conceal the scheme, Kokesh caused the Kokesh Advisers to distribute misleading proxy statements to BDC investors and to file false Commission reports on behalf of the BDCs. By reason of the foregoing, Kokesh violated Section 37 of the Investment Company Act of 1940 [15 U.S.C. § 80a-36] or, in the alternative, Section 57 of the Investment Company Act [15 U.S.C. § 80a-56], and aided and abetted violations of Sections 13(a) and 14(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78m and 78n] and Rules12b-20, 13a-1, 13a-13, and 14a-9 [17 C.F.R. §§ 240.12b-20, 13a-1, 13a-13, and 14a-9] thereunder and Sections 205, 206(1), and 206(2) of the Investment Advisers Act of 1940 [15 U.S.C. §§ 80b-5, 80b-6(1), and 80b-6(2)]. For the reasons set forth in the accompanying Memorandum of Law and evidentiary Appendix, the Commission respectfully requests this Court to grant its Motion for Summary Judgment on all claims it asserts against Kokesh.

Section 36(b) provides that those individuals and entities shall be deemed to have a fiduciary duty with respect to the receipt of compensation for services, or of payments of a material nature, paid by such registered investment company, or by the security holders thereof, to such investment adviser or any affiliated person of such investment adviser. 15 U.S.C. § 80a-36(b). 1.

Crooke, 707A.2d 422 (Md. Ct. Spec.App. 1998) 3 STATUTUES 15 U.S.C. § 80a-36 2, 3 n.2 — U — KL3 2419923 .2 Case 1:05-cv-00296-DAB Document 18 Filed 06/13/05 Page 3 of 8 UNITED STATESDISTRICT COURT SOUTHERNDISTRICT OF NEW YORK x JOHNMARSHALL EVERETT,PAMELA A. KRAMER, andWALTER W. LAWRENCE, on BehalfofThemselvesandall OtherSimilarly Situated, Plaintiffs, v. 05 CV 00296 (DAB) ECF CASE MICHAEL BOZIC, EDWIN J. GARN, WAYNE E. HEDIEN, DR. MANUEL H. JOHNSON,JOSEPH ORAL ARGUMENT REQUESTED J. KEARNS, MICHAEL E. NUGENT, FERGUS REID, CHARLES A. FIUMEFREDDO,JAMES F. HIGGINS, MORGAN STANLEY DEAN WITTER & CO., INC., MORGAN STANLEY INVESTMENT ADVISORS, andJOHNDOESNo. 1 through100, Defendants.