SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
INVESTMENT ADVISERS ACT OF 1940
Rel. No. 2052 / August 30, 2002
Admin. Proc. File No. 3-10390
_________________________________________________________________
In the Matter of
CHRISTOPHER A. LOWRY
_________________________________________________________________
OPINION OF THE COMMISSION
INVESTMENT ADVISER PROCEEDING
Grounds for Remedial Action
Injunction
Misrepresentations and Omissions of Material Facts
President of registered investment adviser violated the antifraud
provisions of the securities laws in connection with
misrepresentations that he made to investors, who were also his
advisory clients, of his use of offering proceeds, and his diversion
of the proceeds to his personal use. He is subject to a permanent
injunction for violating the securities laws. Held, it is in the
public interest to bar respondent from association with any investment
adviser.
APPEARANCES
David W. Larson, of Martin & Squires, P.A., for Christopher A. Lowry.
Kenneth E. Yeadon and Linda Ieleja Gerstman, for the Division of
Enforcement.
Appeal filed October 11, 2001
Last brief received January 23, 2002
I.
Christopher A. Lowry, president of Lowry Investors Services, Inc.,
d/b/a No-Load Advisors ("No-Load Advisors"), a registered investment
adviser during the relevant period, appeals from anadministrative law
judge's decision. The law judge concluded that Lowry should be barred
from association with any investment adviser in connection with
misrepresentations that he made to his advisory clients regarding his
use of offering proceeds invested in a second company that he
SNIPPETS:
CHRISTOPHER A. LOWRY
OPINION OF THE COMMISSION INVESTMENT ADVISER PROCEEDING
President of registered investment adviser violated the antifraud provisions of the
He is subject to a permanent injunction for violating the securities laws.
it is in the public interest to bar respondent from association with any investment adviser.
David W. Larson, of Martin & Squires, P.A., for Christopher A. Lowry.
Christopher A. Lowry, president of Lowry Investors Services, Inc., d/b/a No-Load Advisors, a
In 1988, he incorporated No-Load Advisors, a registered investment adviser.
Lowry had exclusive control over the No-Load Advisors checking account and the disbursement
The business plan stated that Lowry sought to raise $1.5 million to finance the capital and
Equipment $ 70,000 Debt Retirement $ 85,000 Marketing Blitz $ 65,000 401University
Lowry acknowledged that the proceeds from the sale of 401University stock comprised nearly
Lowry's use of 401University offering proceeds to purchase a house was contrary to the
The complaint sought a permanent injunction for Lowry's misrepresentations concerning the use
On December 7, 2000, the district court permanently enjoined Lowry and his company, with
Under 203of the Investment Advisers Act of 1940, we may sanction a person associated with an
Section 203permits us to impose sanctions where, among other things, the person has willfully
As an associated person of an investment adviser, Lowry was a fiduciary with a duty to act in
Lowry was notified by the Division of Enforcement that, in accordance with the terms of his
|
