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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

INVESTMENT ADVISERS ACT OF 1940
Release No. 2011 / January 24, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10688

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In the Matter of
UNITED CUSTODIAL
CORPORATION,
Respondent.
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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING, MAKING FINDINGS AND IMPOSING SANCTIONS
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I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding pursuant to Section 203(e) of the Investment Advisers Act of 1940 ("Advisers Act") be instituted against Respondent United Custodial Corporation ("UCC").

II.

In anticipation of the institution of this administrative proceeding, UCC has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings contained herein, except that UCC admits the jurisdiction of the Commission over it and over the subject matter of this proceeding and the entry of a Final Judgment of Permanent Injunction and Other Relief Against Defendant United Custodial Corporation as set forth in paragraph III.B., UCC consents to the entry of this Order Instituting Public Administrative Proceeding, Making Findings and Imposing Sanctions ("Order").

Accordingly, IT IS ORDERED that a proceeding pursuant to Section 203(e) of the Advisers Act be, and hereby is, instituted.

III.

On the basis of this Order and UCC's Offer, the Commission finds that:

A. UCC is a California corporation formed in June 1997 and is located in San Clemente, California. UCC is registered with the Commission as an investment adviser (File No. 801-55283).

B. A Final Judgment of Permanent Injunction and Other Relief Against Defendant United Custodial Corporation ("Final Judgment") was entered in the United States District Court for the Central District of California against UCC on July 26, 2001. The Final Judgment permanently enjoins UCC from violations of Sections 15(a) and 15(c)(3) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 15c3-3 thereunder. SEC v. United Custodial Corp., Civil Action No. SA CV 00-728 DOC (EEx).

C. The Commission's Complaint filed in the action described above alleges, among other things, that UCC was operating as an unregistered, full-clearing broker-dealer in violation of Section 15(a) of the Exchange Act and was not complying with the customer protection rules of Section 15(c)(3) of the Exchange Act and Rule 15c3-3 thereunder.

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by UCC and to impose the sanction specified in the Offer.

Accordingly, IT IS HEREBY ORDERED that the investment adviser registration of UCC be, and hereby is, revoked.

By the Commission.

  Jonathan G. Katz

Secretary

 

http://www.sec.gov/litigation/admin/ia-2011.htm


Modified: 01/25/2002