INVESTMENT ADVISERS ACT OF 1940
Release No. 1818 / August 26, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9987
| In the Matter of Calvin Douglas Brace Respondent. |
ORDER INSTITUTING PUBLIC PROCEEDDINGS, PURSUANT TO SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS |
I.
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted pursuant to Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Calvin Douglas Brace ("Brace").
In anticipation of the institution of these administrative proceedings, Brace has submitted an Offer of Settlement ("Offer") to the Commission, 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 contained herein, except those contained in paragraphs III(A) and (B) below, which are admitted, Brace consents to the entry of this Order Instituting Public Proceedings, Making Findings and Imposing Remedial Sanctions ("Order").
II.Accordingly, IT IS ORDERED that public administrative proceedings pursuant to Section 203(f) of the Advisers Act are hereby instituted.
III.On the basis of this Order and the Offer of Settlement submitted by Brace, the Commission finds that:
A. Brace owned Gulf Atlantic Industries, LLC ("Gulf"), an investment adviser (No. 801-44979) registered with the Commission between October 1993 and July 5, 1996;
B. On August 16, 1999, in Securities and Exchange Commission v. Brace, et al., No. 98-Z-1644, the United States District Court for the District of Colorado entered a final judgment permanently enjoining Brace from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder; and
C. The Commission alleged in Securities and Exchange Commission v. Brace, et al., No. 98-Z-1644 that, from November 1995 to March 1997, Brace violated the registration and antifraud provisions of the federal securities laws by, among other things, offering and selling prime bank instruments.
IV.In view of the foregoing, it is in the public interest to impose the sanctions specified in the Offer of Settlement.
Accordingly, IT IS ORDERED THAT Brace be, and hereby is, barred from association with any investment adviser.
By the Commission.Jonathan G. Katz
Secretary