UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Investment Advisers Act of 1940
Release No. 2302 / September 21, 2004
Administrative Proceeding File No. 3-11672
In the Matter of Brandt, Kelly & Simmons, LLC and Kenneth G. Brandt
The Commission instituted public administrative and cease-and-desist proceedings pursuant to Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act against Brandt, Kelly & Simmons, LLC (Brandt, Kelly & Simmons) and its principal, Kenneth G. Brandt (Brandt).
The Division of Enforcement alleges that Brandt, Kelly & Simmons, a registered investment adviser based in Southfield, Michigan, agreed to distribute a $7,500 cash payment that it received from a broker-dealer to its advisory clients to compensate them for fees they incurred when moving their accounts to that broker-dealer. In addition, the Division of Enforcement alleges that Brandt, Kelly & Simmons and Brandt did not inform their clients of the payment, but rather fraudulently misappropriated the money for their own uses. The Division of Enforcement further alleges that, as a result of this conduct, Brandt, Kelly & Simmons and Brandt willfully violated Sections 206(1), 206(2), and 207 of the Advisers Act and Brandt willfully aided and abetted and caused Brandt, Kelly & Simmons' violations of Sections 206(1), 206(2), and 207 of the Advisers Act.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the order are true, to provide the respondents an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are appropriate and in the public interest. The Commission directed that the Administrative Law Judge issue an initial decision no later than 300 days from the date of service of the order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.
See also the Order in this matter