Opinion ID: 596754
Heading Depth: 1
Heading Rank: 2

Heading: Investment Advisers Act violation.

Text: 10 To establish a violation under sections 206(1) and (2) of the Investment Advisers Act, 15 U.S.C. § 80b-6 (1988), it must be shown that the defendant is an investment advisor, that he engaged in fraudulent activities, and that he negligently breached his fiduciary duty by making false and misleading statements or omissions of material fact. See SEC v. Capital Gains Research Bureau, Inc., 375 U.S. 180 (1963). Because it has been established that Gotchey is an investment adviser within the meaning of the Act, the previous analysis establishing liability under section 10(b) of the Exchange Act applies. SEC v. Blavin, 557 F. Supp. 1304, 1315 (E.D. Mich. 1983), aff'd, 760 F.2d 706 (6th Cir. 1985). We therefore find no abuse of discretion in the granting of an injunction in this regard. 11