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Investment Adviser Association Bar Imposed Based on Securities Fraud Conviction and Injunction

Martin A. Armstrong, Investment Advisers Act Rel. 2926, September 17, 2009

Time since appeal filed - 5 months 22 days
Time since last brief - 9 days

Armstrong was associated with an investment adviser and was convicted of conspiracy to commit securities fraud and commodities fraud. The Commission barred him from association with an investment adviser.

In 2006 Armstrong pled guilty to conspiracy to commit securities, wire, and commodities fraud. He was sentenced to 60 months imprisonment and ordered to pay $80 million in restitution to 60 defrauded clients. He was also enjoined in a Commission civil case.

Armstrong denied that he was associated with an investment adviser, which if true, would have deprived the Commission of jurisdiction to bring an administrative case against him. The Commission rejected this argument, noting that it does not permit respondents to deny allegations contained in a civil complaint when they consent to an injunctive order.

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