Fed. Sec. L. Rep. P 96,273 Securities and Exchange Commission v. C. R. Richmond & Co., and Curtis R. Richmond

Appellant C. R. Richmond and Company is registered as an investment adviser with the Security and Exchange Commission. The District Court, sitting without a jury, enjoined him from publishing a book which explains his services, describes a method of investment and its success rate, and implies that great profits will result. The District Court found this activity in violation of § 206 of the Investment Advisers Act of 1940, 15 U.S.C. § 80b — 6, and Rule 206(4)-l, 17 C.F.R. 275.206(4)-l, promulgated thereunder.

I

The original complaint against appellants contained eight counts, seven of which were resolved by stipulation prior to trial. Richmond and Company was registered as an investment adviser beginning on June 19, 1971. Mr. Richmond, the president and sole shareholder, has controlled and supervised the operations of his company since its incorporation. His activities as an investment adviser primarily involved the management of clients’ securities accounts for a fee, through two offered programs, the Mutual Fund Program and the Individual Stock Program. The former was the more popular and the one primarily recommended by Mr. Richmond.

In October, 1972, Richmond and Company…