UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 82902 / March 19, 2018 

ADMINISTRATIVE PROCEEDING 

File No. 3-16877

In the Matter of

HOWARD RICHARDS

Respondent.

ORDER APPOINTING FUND 

ADMINISTRATOR AND 

WAIVING BOND 

ADMINISTRATIVE PROCEEDING

File No. 3-16878

In the Matter of

JAMES GOODLAND AND SECURUS

WEALTH MANAGEMENT, LLC

Respondents.

On September 30, 2015, the Commission issued an Order Instituting Administrative 

and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities 

Exchange Act of 1934, Sections 203(f) and 203(k) of the Investment Advisers Act of 1940, 

and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing 

Remedial Sanctions and a Cease-and-Desist Order (“Order”)1against Howard Richards 

(“Richards”). In the Order, the Commission found that, from January 2010 through July 

2013, Richards, an investment advisory representative, associated with Securus Wealth 

Management, LLC (“Securus”), engaged in a manipulative scheme to support the market price 

of the common stock of Gatekeeper USA, Inc. (“Gatekeeper”), which he thought would help 

 

1

 Exchange Act Rel. No. 76058 (Sept. 30, 2015).
2

Gatekeeper to obtain financing. The Commission also found that Richards failed to disclose 

to his clients his significant conflict of interest arising from his ownership of Gatekeeper 

shares, in breach of his fiduciary duty as an investment adviser. The Commission ordered 

Richards to pay a total of $144,000 in disgorgement, prejudgment interest, and a civil money 

penalty over the period of one year. The Commission also created a Fair Fund, pursuant to 

Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for the monies received 

pursuant to the Order.

In a related action, the Commission simultaneously issued an Order Instituting 

Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f) and 

203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial 

Sanctions and a Cease-and-Desist Order (“Company Order”)2against James Goodland 

(“Goodland”) and Securus. In the Company Order, the Commission found that, from January 

2010 through July 2013, Securus, an investment adviser registered with the Commission, and 

Goodland, its President and Chief Compliance Officer, failed to reasonably supervise 

Richards whom Goodland directly supervised. Securus and Goodland also failed to adopt and 

implement an adequate system of internal controls that would have prevented and detected 

violations of the Investment Advisers Act of 1940. The Company Order required Goodland to 

pay a $30,000 civil money penalty and created a Fair Fund, pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002, as amended, for the monies received pursuant to the Company 

Order. The Company Order also provided that the funds could be distributed by the Fair Fund 

established in In the Matter of Howard Richards, Admin. Proc. File No. 3-16877.

 

2

 Advisers Act Rel. No. 4213 (Sept. 30, 2015).
3

Richards and Goodland have paid a total of $174,000 into the respective Fair Funds, as 

ordered (hereinafter collectively, the “Fair Fund”).

The Division of Enforcement now seeks the appointment of Analytics Consulting, 

LLC (“Analytics”) as the fund administrator for the Fair Funds in the above-captioned 

proceedings and requests that the administrator bond be waived as required by Rules 1105(a) 

and 1105(c) of the Commission’s Rules on Fair Fund and Disgorgement Plans (“Rules”).3 

Analytics is included in the Commission’s approved pool of administrators. 

The Division of Enforcement seeks the waiver of the bond requirement as the 

Commission staff’s procedures and the Plan of Distribution will ensure that there are several 

layers of protection in place for the Fair Fund. Among other things: (1) the fund administrator 

will have no custody, and only limited control, of the Fair Fund; (2) the Fair Fund will be held 

by the U.S. Treasury Bureau of Fiscal Services until immediately before transmittal of checks 

or electronic transfers to eligible investors; (3) upon transfer from the U.S. Treasury, funds 

will be held in an escrow account, separate from bank assets, until presentation of a check or 

electronic transfer, at which time funds will be transferred to a controlled distribution account; 

(4) presented checks or electronic transfers will be subject to “positive pay” controls before 

being honored by the bank; and (5) both the bank and the fund administrator will maintain, 

throughout the process, insurance and/or a financial institution bond that covers errors and 

omissions, misfeasance and fraud. 

 

3

 17 C.F.R. §§ 201.1105(a) and 201.1105(c).
4

Accordingly, IT IS HEREBY ORDERED that Analytics is appointed as the fund 

administrator, pursuant to Rule 1105(a) of the Rules, 17 C.F.R. § 201.1105(a), and the 

administrator bond is waived, in accordance with Rule 1105(c) of the Rules, 17 C.F.R. 

§ 201.1105(c). 

For the Commission, by the Division of Enforcement, pursuant to delegated authority.4

Brent J. Fields

Secretary

 

4

 17 C.F.R. § 200.30-4(a)(17).