The allegations read: Sec initial decision no. 147, 08/06/1999: the sec initiated this proceeding by an order instituting proceedings ("oip") on may 29, 1997, pursuant to sections 8a of the securities act of 1933 ("securities act"); sections 15(b)(6), 19(h), 21b and 21c of the securities exchange act of 1934 ("exchange act"); and sections 203(e), (f), (i) and (k) of the investment advisers act of 1940 ("advisers act"). The oip set out four allegations. First, it alleges that respondent kenny was involved in a scheme to defraud. He misrepresented material facts to two individuals in violation of the antifraud provisions of the federal securities laws, sections 17(a) of the securities act, section 10(b) of the exchange act and rule 10b-5 thereunder. Second, respondent kenny was involved in a scheme to defraud two insurance companies. He aided, abetted, and caused violations of the antifraud provisions of the federal securities laws, section 17a of the securities act, section 10(b) of the exchange act and rule 10b-5 thereunder. Third, respondent kenny breached his fiduciary duty with the insurance company by making representations, failing to disclose prior misrepresentations, acted in violation of florida state law, and misappropriating funds. He violated sections 206(1) and 206(2) of the advisers act. Finally, respondent violated section 207 of the advisers act by filling false forms adv.
