An administrative law judge has revoked the registration to operate as an investment adviser of Piper Capital Management of Minneapolis, a unit of U.S. Bancorp Piper Jaffray, and fined the firm $2.005 million. The actions, by Judge H. Peter Young, came in an initial decision with regard to allegations brought by the Securities and Exchange Commission. The SEC's division of enforcement, in the decision, characterized the proceeding as "one of the largest and most complex it has ever conducted."

The SEC allegations stemmed from the 1994 collapse of the Piper Jaffray Institutional Government Income Portfolio, a diversified mutual fund. The judge confirmed the SEC's allegation that the fund violated the Securities Act by deviating from the preservation of capital component of the fund's investment objective and failing to disclose the deviation, the SEC said.

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