Lowe et al. v. Securities and Exchange Commission (472 U.S. 181)
U.S. Supreme Court · decided June 10, 1985 · Supreme Court Database (Spaeth)
- Citation
- 472 U.S. 181 · 105 S. Ct. 2557
- Decided
- June 10, 1985
- Term
- October Term 1984
- Vote
- 8–0
- Majority author
- Justice Stevens
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Justice Stevens delivered the opinion of the Court. The question is whether petitioners may be permanently enjoined from publishing nonpersonalized investment advice and commentary in securities newsletters because they are not registered as investment advisers under § 203(c) of the Investment Advisers Act of 1940 (Act), 54 Stat. 850, 15 U. S. C. § 80b-3(c). Christopher Lowe is the president and principal shareholder of Lowe Management Corporation. From 1974 until 1981, the corporation was registered as an investment adviser under the Act. During that period Lowe was convicted of misappropriating funds of an investment client, of engaging in business as an investment adviser without filing a registration application with New York’s Department of Law, of tampering with evidence to cover up fraud of an investment client, and of stealing from a bank. Consequently, on May 11, 1981, the Securities and Exchange Commission (Commission), after a full hearing before an Administrative Law Judge, entered an order revoking the registration of the Lowe Management Corporation, and ordering Lowe not to associate thereafter with any investment adviser. In fashioning its remedy, the Commission took into account the fact that petitioners “are now solely engaged in the business of publishing advisory publications.” The Commission noted that unless the registration was revoked, petitioners would…
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