UNITED STATES SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
ADMINISTRATIVE PROCEEDING FILE NO. 3-10390
IN THE MATTER OF CHRISTOPHER A. LOWRY
The SEC announced today that it has instituted administrative proceedings against Christopher A. Lowry, a St. Paul, Minnesota investment adviser, for misappropriating investor funds which he raised through the sale of stock in Fountainhead Retirement Plan Services, Inc. d/b/a 401(k) University. In the Order Instituting Proceedings, the Division of Enforcement alleges that Lowry, the president and chief executive officer of 401(k) University, first sold 401(k) University stock in May 1999. In raising funds, Lowry represented in the 401(k) University business plan that investor funds would be used to finance the capital and operating requirements of the business. The Division alleges that contrary to those representations, Lowry used $156,500 of the $488,000 he had raised to buy a home for himself.
The Commission previously filed a civil action against Lowry, United States Securities and Exchange Commission v. Christopher A. Lowry, et al., No. 00-348 in the United States District Court for the District of Minnesota, based upon the same conduct alleged in the Order Instituting Proceedings. On December 7, 2000, the court entered a Final Order and Judgment of Permanent Injunction and Other Relief, permanently enjoining Lowry from violating the antifraud provisions of the federal securities laws and requiring him to pay disgorgement of $156,500 plus prejudgment interest.
A hearing will be held before an administrative law judge to determine whether the staff's allegations are true and, if so, to determine what remedial sanctions are appropriate in the public interest.http://www.sec.gov/litigation/admin/ia-1915.htm