U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Washington, D.C.

Release No. 1991 / October 18, 2001

File No. 3-10625

The Commission today instituted public administrative and cease-and-desist proceedings pursuant to Sections 203(e), 203(f), 203(i) and 203(k) of the Investment Advisers Act of 1940 against F.X.C. Investors Corp. ("FXC") and Francis X. Curzio. In the Order Instituting Proceedings (the "Order"), the Division of Enforcement alleges that from at least December 1996 through December 1998, FXC willfully violated Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act (the "Advisers Act") and Rule 206(4)-1(a)(5) thereunder, and that Curzio willfully aided, abetted and caused FXC's violations of Sections 206(1), 206(2) and 206(4) of the Advisers Act and Rule 206(4)-1(a)(5) thereunder.

The Division of Enforcement alleges that:

From at least December 1996 through December 1998, FXC distributed to numerous prospective investors materially misleading advertisements concerning FXC's historic annual performance results. These advertisements were improper because they indicated that the displayed performance was the actual performance of FXC's advisory clients, when in fact it reflected the hypothetical returns that would have been earned by certain "model" portfolios described in newsletters published by FXC. The advertisements also failed to make other required disclosures. FXC submitted the newsletter performance to the publisher of an investment guide that, under the false impression that the returns reflected the performance of actual managed accounts, ranked FXC favorably against other investment advisers. FXC sent the misleading rankings to prospective investors as part of its marketing material. Curzio, FXC's principal and owner, was responsible for, and participated in, FXC's misconduct.

A hearing will be scheduled before an administrative law judge to determine whether the allegations against FXC and Curzio are true, to provide the respondents an opportunity to respond to the allegations, and to determine what, if any, remedial action is appropriate in the public interest with respect to those respondents.


Modified: 10/22/2001