SEC Obtains Final Judgment Against Recidivist Investment Adviser, Including Enforcement of an SEC Order

Litigation Release No. 24830 / June 8, 2020

Securities and Exchange Commission v. Brandon E. Copeland and E.B. & Copeland Capital, Inc., No. 1:20-cv-00589 (N.D. Ohio filed March 18, 2020)

On June 1, 2020, the United States District Court for the Northern District of Ohio entered final consent judgments against recidivist investment adviser Brandon E. Copeland and his advisory firm, E.B. & Copeland Capital, Inc.

The SEC's complaint alleges that, after the SEC instituted a settled order against Copeland in July 2019 for, among other things, making false and misleading statements to investors and barred him from the securities industry, Copeland immediately violated the SEC's order. Specifically, Copeland allegedly created, and associated with, Copeland Capital and failed to pay the ordered penalty. According to the complaint, Copeland and Copeland Capital committed a new fraud by promoting a new private fund on a public website that contained numerous material misstatements and omissions regarding the status and success of the fund, as well as Copeland's industry experience and disciplinary history with the SEC.

The final judgment against Copeland enforces the SEC's July 2019 order against him and orders him to comply with all relief provided for in that order, permanently restrains and enjoins him from violations of the antifraud provisions of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, and orders him to pay an additional civil penalty in the amount of $192,768. The final judgment against Copeland Capital permanently restrains and enjoins it from violations of the antifraud provisions of Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder.

The SEC's investigation was conducted by Jennifer R. Turner and was supervised by Mary S. Brady and Jason J. Burt of the SEC's Denver office. The litigation has been led by Leslie J. Hughes and supervised by Gregory A. Kasper.