United States of America
Before the
Securities and Exchange Commission

Investment Advisers Act of 1940
Release No. 2190 / November 5, 2003

Administrative Proceeding
File No. 3-11276

I.

On September 30, 2003, the Securities and Exchange Commission ("Commission") instituted public administrative proceedings pursuant to Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Remmington Advisors, Inc. ("Remmington") and Kenneth Randall Ward ("Ward").

II.

Remmington and Ward have submitted Offers of Settlement ("Offers"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over them and over the subject matter of these proceedings, which are admitted, Remmington and Ward consent to the entry of this Order Making Findings and Imposing Remedial Sanctions Pursuant to Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 ("Order"), as set forth below.

III.

On the basis of this Order and the Offers, the Commission makes the following findings:

Respondents

A. Remmington (File No. 801-61720) is presently an investment adviser registered with the Commission. Remmington is a corporation organized under the laws of the state of Texas, with its principal place of business at 1822 Briarchester, Katy, Texas. Remmington's registration with the Commission as an investment adviser became effective on February 21, 2003.

B. Kenneth Randall Ward, 51, resides in Katy, Texas. Ward was a registered representative associated with various registered broker-dealers from 1988 through 1997. Currently, Ward is the principal owner and president of Remmington.

Ward's Violations of the Antifraud Provisions, and the Commission's Opinion Barring Ward From Association with Any Broker or Dealer and Imposing Other Sanctions

C. On June 4, 1997, the Commission instituted administrative and cease-and-desist proceedings against Ward. The Order Instituting Proceedings alleged that Ward, while a registered representative associated with Government Securities Corporation of Texas, a broker-dealer registered with the Commission, willfully violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. §77q(a) and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §78j(b) and Rule 10b-5 thereunder [17 C.F.R. §240.10b-5], through the fraudulent offer and sale, and in connection with the purchase or sale, of inverse floater mortgage derivative securities to two Texas municipalities. After a full hearing, the administrative law judge ("ALJ") dismissed the Division's charges against Ward. Less than one month after the Remmington investment adviser registration became effective, however, the Commission reversed the ALJ's decision. In the Matter of Ward, Admin. Proc. File No. 3-9327, Release No. 34-47535 (March 19, 2003) (the "Ward Opinion"). The Commission, based on its de novo review of the record, concluded that Ward willfully violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Commission further, in the public interest, issued an order imposing the following remedial sanctions on Ward: (1) barring Ward from association with any broker or dealer; (2) ordering Ward to cease and desist from committing or causing any violation and committing or causing any future violation of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; (3) requiring Ward to disgorge $249,711 in unjust enrichment, plus prejudgment interest; and (4) imposing on Ward a third-tier civil penalty of $100,000, pursuant to Section 21B of the Exchange Act [15 U.S.C. § 78u-2(a)].

D. In the Ward Opinion, the Commission, in barring Ward from association with any broker or dealer, stated that Ward "represents a threat to the investing public" and his actions "demonstrate a callous willingness to exploit, for personal benefit and without regard for the impact on others, the trust placed in him by customers. . . ." Release No. 34-47535; Release No. 33-8210. Ward's prior violations of the Securities Act and Exchange Act and the Commission's conclusions concerning Ward's conduct suggest that Remmington is presently unfit to remain a registered investment adviser, and Ward is presently unfit to remain associated with an investment adviser, pursuant to the Advisers Act.

Basis for Relief

E. Section 203(e)(5) of the Advisers Act authorizes the Commission to order remedial measures in the public interest, including revocation of registration against an investment adviser if it finds that the adviser, or any person associated with the adviser, "has willfully violated any provision of the Securities Act of 1933 [or] the Securities Exchange Act of 1934. . . ." Pursuant to this provision, the Commission may impose sanctions for violations of the other statutory schemes by an associated person "whether [committed] prior to or subsequent to becoming so associated." Section 203(f) of the Advisers Act authorizes the Commission to order remedial measures in the public interest, including a permanent bar, against any person associated with an investment adviser if the Commission concludes that the associated person has engaged in conduct delineated in Section 203(e)(5), including willful violations of the Securities Act or Exchange Act.

IV.

Based on the foregoing, the Commission finds that it is appropriate and in the public interest to accept the Offers of Settlement by Remmington and Ward.

Accordingly, it is hereby ORDERED:

A. Pursuant to Section 203(e) of the Advisers Act, that the registration of Respondent Remmington as an investment adviser be, and hereby is revoked; and

B. Pursuant to Section 203(f) of the Advisers Act, that Respondent Ward be, and hereby is barred from association with any investment adviser. Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

For the Commission, by its Secretary, pursuant to delegated authority.

http://www.sec.gov/litigation/admin/ia-2190.htm