INVESTMENT ADVISERS ACT OF 1940
RELEASE NO. 1816 \ August 26, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9985
COMMISSION INSTITUTES PROCEEDING AGAINST THREE INVESTMENT ADVISERS FOR FAILING TO MAKE TIMELY YEAR 2000-RELATED DISCLOSURE
The Securities and Exchange Commission ("Commission") announced that it issued an Order Instituting Public Administrative and Cease-and-Desist Proceeding Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 against three investment advisers for failing to timely file an updated Form ADV-Y2K. Form ADV-Y2K was designed to enable the Commission to evaluate the preparedness of investment advisers for the Year 2000. The advisers named in the proceeding are: Huber Hogan Consulting, Inc. ("Huber Hogan") of Red Bank, New Jersey; Russon Financial Services, Inc. ("Russon") of Woodland Hills, California; and Robert C. Sears ("Sears") of Northampton, Massachusetts. The Order alleges that Huber Hogan, Russon and Sears, each of which reported assets under management of not less than $25 million, were required to and failed to file Part I of Form ADV-Y2K by June 7, 1999. The Order further alleges that the respondents violated Section 204 of the Investment Advisers Act of 1940 and Rule 204-5. A hearing will be scheduled to determine whether the allegations are true and whether cease-and-desist orders, civil penalties and other sanctions are appropriate against these respondents.