SECURITIES AND EXCHANGE COMMISSION
INVESTMENT ADVISERS ACT OF 1940
Release. No. 2177 / September 26, 2003
ADMINISTRATIVE PROCEEDING
File No. 3-11276
Proceedings Instituted against Remmington Advisors, Inc. and Kenneth Randall Ward
The Commission instituted administrative proceedings pursuant to Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Remmington Advisors, Inc. ("Remmington"), a registered investment adviser, and Kenneth Randall Ward ("Ward"), Remmington's principal. The administrative proceeding seeks to determine whether remedial action against Remmington and Ward is in the public interest, based on Ward's willful violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act").
The Division of Enforcement alleges that, on March 19, 2003, the Commission issued an opinion concluding that Ward committed willful violations of the antifraud provisions of the Securities Act and Exchange Act through the offer and sale, and in connection with the purchase and sale, of inverse floater mortgage derivative securities to two Texas municipalities. In the Matter of Ward, Admin. Proc. File No. 3-9327, Release No. 34-47535 (March 19, 2003). The Commission imposed sanctions on Ward in the public interest, including permanently barring him from association with any broker or dealer. In barring Ward, the Commission stated that Ward "represents a threat to the investing public" and his actions "demonstrate a callous willingness to exploit, for personal benefit and without regard for the impact on others, the trust placed in him by investors . . . ."
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Remmington and Ward an opportunity to dispute the allegations, and to determine what, if any, remedial sanctions are appropriate in the public interest.