Yosemite Capital Management

Includes form instructions and options. Options shown in this text do not identify which boxes were selected.

GENERAL INSTRUCTIONS
This Disclosure Reporting Page (DRP ADV) is an 
INITIAL OR
AMENDED response used to report details for affirmative responses to Items 11.C., 11.D.,
11.E., 11.F. or 11.G. of Form ADV.
Regulatory Action
Check item(s) being responded to:
11.C(1)
11.C(2)
11.C(3)
11.C(4)
11.C(5)

11.D(1)
11.D(2)
11.D(3)
11.D(4)
11.D(5)
11.E(1)
11.E(2)
11.E(3)
11.E(4)
11.F.
11.G.
Use a separate DRP for each event or proceeding . The same event or proceeding may be reported for more than one person or entity using one DRP. File
with a completed Execution Page. 
One event may result in more than one affirmative answer to Items 11.C., 11.D., 11.E., 11.F. or 11.G. Use only one DRP to report details related to the
same event. If an event gives rise to actions by more than one regulator, provide details for each action on a separate DRP.
PART I
A.  The person(s) or entity(ies) for whom this DRP is being filed is (are):
You (the advisory firm)
You and one or more of your advisory affiliates
One or more of your advisory affiliates
If this DRP is being filed for an advisory affiliate, give the full name of the advisory affiliate below (for individuals, Last name, First name, Middle name). 
If the advisory affiliate has a CRD number, provide that number. If not, indicate "non-registered" by checking the appropriate box.
ADV DRP - ADVISORY AFFILIATE
CRD
Number:
1707829
This advisory affiliate is 
a Firm
an Individual
Registered:
Yes
No
Name:
HECKLER, PAUL, HENRY
(For individuals, Last, First,
Middle)
This DRP should be removed from the ADV record because the advisory affiliate(s) is no longer associated with the adviser.
This DRP should be removed from the ADV record because: (1) the event or proceeding occurred more than ten years ago or (2) the adviser is
registered or applying for registration with the SEC or reporting as an exempt reporting adviser with the SEC and the event was resolved in the
adviser's or advisory affiliate's favor.
If you are registered or registering with a state securities authority , you may remove a DRP for an event you reported only in response to Item
11.D(4), and only if that event occurred more than ten years ago. If you are registered or registering with the SEC, you may remove a DRP for any
event listed in Item 11 that occurred more than ten years ago.
This DRP should be removed from the ADV record because it was filed in error, such as due to a clerical or data-entry mistake. Explain the
circumstances: 
B.
If the advisory affiliate is registered through the IARD system or CRD system, has the advisory affiliate submitted a DRP (with Form ADV, BD or U-4) to
the IARD or CRD for the event? If the answer is "Yes," no other information on this DRP must be provided.
 Yes
 No
NOTE: The completion of this form does not relieve the advisory affiliate of its obligation to update its IARD or CRD records.
PART II
1.  Regulatory Action initiated by:
SEC   
Other Federal   
State   
SRO
Foreign
(Full name of regulator, foreign financial regulatory authority, federal, state, or SRO) 
2.
Principal Sanction:
Cease and Desist
Other Sanctions: 
CENSURE, DISGORGEMENT/RESTITUTION
3.
Date Initiated (MM/DD/YYYY): 
03/17/2010
 Exact
 Explanation
If not exact, provide explanation:
4.
Docket/Case Number:
3-13821
5.
Advisory Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable):

6.
Principal Product Type:
Other
Other Product Types: 
UNSPECIFIED TYPE OF SECURITIES
7.
Describe the allegations related to this regulatory action (your response must fit within the space provided):
SEC ADMINISTRATIVE RELEASE IA 40-3005, MARCH 17, 2010: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATE
AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO
SECTIONS 203(E), 203(F) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940 ("ADVISERS ACT"), AGAINST YOSEMITE CAPITAL MANAGEMENT, LLC
("YOSEMITE" OR "RESPONDENT"). THESE PROCEEDINGS INVOLVE THE FAILURE OF YOSEMITE TO DISCLOSE TO CLIENTS THAT THEIR PROMISED DUE
DILIGENCE HAD ENCOUNTERED SIGNIFICANT PROBLEMS. YOSEMITE, THROUGH ITS PRINCIPAL, PLACED $3.25 MILLION OF FOUR OF ITS CLIENTS'
FUNDS THROUGH A "FEEDER FUND," INTO PURPORTED BRIDGE LOANS ARRANGED BY ANOTHER INDIVIDUAL AND HIS COMPANY. INSTEAD OF BEING
PLACED IN BRIDGE LOANS, HOWEVER, THE MONEYS WERE PART OF THE INDIVIDUAL'S $60 MILLION PONZI SCHEME. IN JANUARY 2007, PRIOR TO
PLACING HIS CLIENTS' INVESTMENTS WITH THE FEEDER FUND AND THE COMPANY, THE PRINCIPAL PROMISED TO CONDUCT DUE DILIGENCE TO AT
LEAST TWO CLIENTS PRIOR TO PLACING HIS CLIENTS INTO THE FEEDER FUND INVESTMENT. ALTHOUGH THE PRINCIPAL ASKED FEEDER FUND
REPRESENTATIVES SEVERAL KEY QUESTIONS, HE RECEIVED INCOMPLETE, CONTRADICTORY, AND EVASIVE RESPONSES. HE RECEIVED NO FINANCIALS.
INVESTORS WERE PROMISED A HIGH RATE OF RETURN, EFFECTIVELY 24% PER YEAR, AND RECEIVED A POST-DATED CHECK SHORTLY AFTER INVESTING
IN THE AMOUNT OF THEIR PRINCIPAL PLUS INTEREST. IN RESPONSE TO THE PRINCIPAL'S REQUESTS FOR INFORMATION, HE WAS TOLD THAT THE
INDIVIDUAL WAS A PRIVATE PERSON AND NO INFORMATION WAS AVAILABLE. HE ALSO RECEIVED AN EIGHT-PAGE BROCHURE FROM THE FEEDER FUND
REPLETE WITH MISSPELLINGS, AND WAS TOLD THAT THE BRIDGE LOANS WERE SAFER THAN STOCKS OR BONDS. BECAUSE THE FEEDER FUND HAD NO
OFFICES, THE PRINCIPAL MET THE THREE REPRESENTATIVES -- ONE OF WHOM THE PRINCIPAL BELIEVED WAS A UPS TRUCK DRIVER OR DELIVERYMAN -
- AT LOCAL RESTAURANTS TO DISCUSS THE INVESTMENT. DESPITE THESE RED FLAGS, THE PRINCIPAL PLACED FOUR YOSEMITE CLIENTS INTO THE
FEEDER FUND INVESTMENT WITHOUT DISCLOSING TO CLIENTS THAT HIS DUE DILIGENCE PROCESS HAD BEEN THWARTED. AS A RESULT OF THE
CONDUCT DESCRIBED ABOVE, THE PRINCIPAL AND YOSEMITE WILLFULLY VIOLATED SECTION 206(2) OF THE ADVISERS ACT, WHICH PROHIBITS ANY
INVESTMENT ADVISER FROM ENGAGING IN ANY TRANSACTION, PRACTICE, OR COURSE OF BUSINESS, WHICH OPERATES AS A FRAUD OR DECEIT ON ANY
CLIENT OR PROSPECTIVE CLIENT, AND THE PRINCIPAL CAUSED YOSEMITE'S VIOLATIONS OF SECTION 206(2) OF THE ADVISERS ACT.
8.
Current Status?      
 Pending
 On Appeal
 Final
9.
If on appeal, regulatory action appealed to (SEC, SRO, Federal or State Court) and Date Appeal Filed:
If Final or On Appeal, complete all items below. For Pending Actions, complete Item 13 only.
10. How was matter resolved:
Order
11. Resolution Date (MM/DD/YYYY):
03/17/2010
 Exact
 Explanation
If not exact, provide explanation:
12. Resolution Detail:
A.  Were any of the following Sanctions Ordered (check all appropriate items)?
 Monetary/Fine Amount: $
 Revocation/Expulsion/Denial
 Disgorgement/Restitution
 Censure
 Cease and Desist/Injunction
 Bar
 Suspension
B.
Other Sanctions Ordered:
SEE UNDERTAKINGS IN #13 BELOW.
Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal,
Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to
requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution,
disgorgement or monetary compensation, provide total amount, portion levied against you or an advisory affiliate, date paid and if any portion
of penalty was waived: 
RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSE OF
THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION IS A
PARTY, AND WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN, EXCEPT AS TO THE COMMISSION'S JURISDICTION OVER IT AND THE
SUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED, RESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTING
ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 203(E), 203(F) AND 203(K) OF THE INVESTMENT ADVISERS
ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. AS A RESULT OF ITS CONDUCT, THE
PRINCIPAL AND YOSEMITE WILLFULLY VIOLATED SECTION 206(2) OF THE ADVISERS ACT. AS A RESULT OF ITS CONDUCT, THE PRINCIPAL
WILLFULLY CAUSED YOSEMITE'S VIOLATIONS OF SECTIONS 206(2) OF THE ADVISERS ACT, WHICH MAKES IT UNLAWFUL FOR AN ADVISER TO
ENGAGE IN ANY TRANSACTION, PRACTICE, OR COURSE OF BUSINESS THAT OPERATES AS A FRAUD OR DECEIT UPON ANY CLIENT. ACCORDINGLY,
PURSUANT TO SECTIONS 203(E), 203(F) AND 203(K) OF THE ADVISERS ACT, IT IS HEREBY ORDERED THAT RESPONDENT YOSEMITE CAPITAL
MANAGEMENT, LLC CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 206(2) OF
THE ADVISERS ACT; RESPONDENT YOSEMITE CAPITAL MANAGEMENT, LLC IS CENSURED; RESPONDENT YOSEMITE CAPITAL MANAGEMENT, LLC
SHALL, WITHIN 30 DAYS OF THE ENTRY OF THIS ORDER, PAY DISGORGEMENT OF $26,000.00, PREJUDGMENT INTEREST OF $3,071.86 AND CIVIL
PENALTIES OF $50,000.00 (FOR A TOTAL AMOUNT OF $79,071.86) TO THE UNITED STATES TREASURY. YOSEMITE CAPITAL MANAGEMENT, LLC

SHALL COMPLY WITH THE UNDERTAKINGS ENUMERATED.
13. Provide a brief summary of details related to the action status and (or) disposition and include relevant terms, conditions and dates (your response
must fit within the space provided).
UNDERTAKINGS: WITHIN THIRTY (30) DAYS OF THE ISSUANCE OF THIS ORDER, MAIL A COPY OF THE FORM ADV WHICH INCORPORATES THE
PARAGRAPHS CONTAINED IN THE SUMMARY SECTION OF THIS ORDER TO EACH OF YOSEMITE'S EXISTING CLIENTS, AND SPECIFY THAT THE ENTIRE
ORDER WILL BE POSTED ON YOSEMITE'S WEBSITE. WITHIN THIRTY (30) DAYS OF THE ISSUANCE OF THIS ORDER, POST A COPY OF THIS ORDER ON
YOSEMITE'S WEBSITE AND MAINTAIN THIS COPY OF THE ORDER ON YOSEMITE'S WEBSITE FOR A PERIOD OF SIX (6) MONTHS. RESPONDENTS SHALL
ALSO PROVIDE A COPY OF THE FORM ADV TO ANY NEW CLIENT THAT ENGAGES YOSEMITE OR ITS PRINCIPAL WITHIN TWO (2) YEARS OF THE DATE OF
THIS ORDER.