3. See Advisers Act § 203(k)(1). 4. The resetting of the accounting process was to correct errors made by the Funds’ former administrator. 5. Although the SEC initiated proceedings against Apex pursuant to the cease-anddesist provisions of section 203(k) of the Advisers Act, nowhere in Release 4428 does the SEC allege that Apex itself violated any provision of the Advisers Act or rules thereunder. 6. It is not clear when the alleged withdrawals of funds by Zoernack began. The amounts, booked as receivables, represented 54 percent of one Fund’s assets, and 26 percent of the other. 7. Zoernack also had a 1999 forgery conviction. 8. The SEC, in the Summary section of the Order (Release 4429), states that Apex caused the violations. Berwyn | Boston | Detroit | Harrisburg | Los Angeles | New York | Orange County | Philadelphia | Pittsburgh | Princeton Silicon Valley | Washington | Wilmington pepper.law .