An SEC administrative law judge has sanctioned two executives of the now defunct Target Income Fund of Glendora, Calif. for their role in filing registration statements on behalf of the fund that failed to include significant facts.

Byron G. Borgardt, a director, portfolio manager and president of Target Income, and Eric M. Banhazl, vice president, treasurer and secretary of the fund, signed registration statements that were false, according to James T. Kelly, an SEC administrative law judge. Kelly, saying the violations by Borgardt and Banhazl were not "egregious," ordered the two not to violate the securities laws again.

Kelly's ruling came in a decision June 1. Banhazl and the lawyer for Borgardt were not immediately available for comment. Target Income, whose assets never were larger than $12 million, closed in 1997, Kelly said.

The fund should have disclosed several key facts in its registration statements, including the fund's relationship with the Concord Growth Corp. of Palo Alto, Calif., a commercial finance company, Kelly said. Concord was the sole source of loans in which Target Income invested from December 1992 to March 1997, a fact that the fund did not disclose in registration statements until July 1996, Kelly said.

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