The United States District Court for the Southern District of New York has permanently banned Irving Paul David, the former controller of the Smith Barney World Funds from the financial industry. David did not admit or deny the allegations.

The ruling stems from an August 2003 Securities and Exchange Commission case against David charging him with embezzling approximately $47,529 from investment companies Consulting Group Capital Markets Funds and Smith Barney World Funds, for which he served as treasurer and controller, respectively.

At the time David was embezzling from the funds, he signed a document pursuant to the Sarbanes-Oxley Act in which he falsely stated that he had disclosed to the Consulting Group Fund's auditors and audit committee any fraud involving management.

In October 2003, a partial judgment had been entered against David on his consent, which imposed the same injunctive relief but deferred resolution of the Commission's claims for monetary relief.

In April 2004, David pleaded guilty in a criminal case against him based on the same allegations by the SEC. In September 2005, he was sentenced to one year of supervised release and ordered to pay $14,528.

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