Richard G. Cody, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23961 / October 5, 2017

Securities and Exchange Commission v. Richard G. Cody, et al., No. 16-cv-12510 (D. Mass. filed Dec. 12, 2016)

United States v. Richard G. Cody, No. 17-cr-10291 (D. Mass. filed Sept. 26, 2017)

Defendant in SEC Enforcement Action Indicted for Investment Adviser Fraud and Lying to the SEC

A former investment adviser and broker representative, whom the Securities and Exchange Commission has charged with defrauding Massachusetts retirees, has been indicted for deceiving and manipulating his former clients concerning the management of their retirement savings as well as lying to the agency in sworn testimony.

The indictment, filed on September 26, 2017 and unsealed on September 28, 2017, charges Richard G. Cody, of Jacksonville, Fla., with violating the Investment Advisers Act of 1940 and making a false declaration in a court proceeding. The alleged facts underlying the charges in the indictment arise from the same conduct alleged in the SEC's complaint against Cody, which was filed in federal court in Massachusetts on December 12, 2016. The indictment also alleges that Cody lied to the SEC during a March 2017 sworn deposition in connection with the SEC's action against Cody. Cody allegedly made false declarations during the deposition when he denied that he had provided fraudulent documents to two investors.

On December 22, 2016, the SEC obtained a preliminary injunction and an asset freeze against Cody and his company, Boston Investment Partners LLC, from violating certain antifraud provisions of the federal securities laws. The SEC's litigation against Cody, which seeks disgorgement of allegedly ill-gotten gains, plus interest and penalties, as well as permanent injunctive relief, is pending.