Hatch has 20 days to respond to the SEC's civil charges before the case moves forward in court. Hatch was unavailable for comment.

The SEC is seeking an injunction against future violations, meaning Hatch would be held in contempt of court if he violated the injunction. The SEC also wants to be sure Hatch gives up all of his "ill-gotten" gains and that he also pays a civil monetary penalty.

UESP officials say Hatch has returned some of the $85,000 and that he is under a court order to repay money that was covered by UESP's insurance policy. Hatch, just before he was caught by UESP staff, had attempted to withdraw an additional $200,000 from UESP accounts "secretly" controlled by him, according to court documents.

All affected investors, Ward said, have been reimbursed.

Ward, who took over in January 2005, has since helped implement improvements to the fund that the SEC said already fulfills terms of the settlement.

Since Hatch's firing, UESP is under new management and has a new computer database system designed to improve UESP's security, accuracy and internal controls, according to a UESP release.

UESP sent out a new program description in February to all current investors, which this week numbered more than 60,500 accounts.

The new program disclosure document was the result of consulting from Andrea Feirstein, a New York-based attorney and national industry adviser on 529 plans. Feirstein continues to advise UESP officials on marketing matters.

"I think it shows you their commitment to being as forthcoming and as accurate as they can with investors," Feirstein said Thursday.

Ward isn't worried about the fund's future despite what the SEC is saying this week. At the time Hatch was fired, the fund was worth $750 million — now it's worth $1.1 billion, Ward said.

"We've already made all these improvements," she said. "I've put in place measures to improve internal controls."

Ward added that the settlement does not include any fines or any civil or criminal charges against UESP or its current officers. The SEC's civil action against Hatch, she said, may help UESP.

"There will be a bright line drawn between the former director and the program itself," Ward said.

---

E-mail: sspeckman@desnews.com