Final Judgment Against Investment Adviser Kevin N. Richards for Unregistered Securities Offerings

Kevin N. Richards

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26531 / April 17, 2026

Securities and Exchange Commission v. Kevin N. Richards, No. 8:25-cv-02057 (C.D. Cal. filed Sept. 11, 2025)

SEC Obtains Final Judgment as to Investment Adviser in Alleged Unregistered Oil and Gas Offerings

On April 7, 2026, the United States District Court for the Central District of California entered a final judgment as to Kevin N. Richards, whom the SEC previously charged with selling securities in unregistered oil and gas offerings, acting as an unregistered broker, and failing to disclose financial conflicts of interest to advisory clients.

The SEC’s complaint, filed on September 11, 2025, alleged that Richards, a former California-based insurance agent, marketed and sold approximately $12 million of investments in oil and gas securities to approximately 25 retail investors in a series of unregistered securities offerings. The complaint alleged that Richards used mass marketing, including his own radio show, to solicit investors, and that he received more than $600,000 in transaction-based compensation for selling the unregistered securities.

Previously, without admitting or denying the allegations in the complaint, Richards consented to a judgment, entered by the Court on December 16, 2025, that permanently enjoined him from violating Section 5 of the Securities Act of 1933, Section 15(a) of the Securities Exchange Act of 1934, and Section 206(2) of the Investment Advisers Act of 1940; permanently enjoined him from issuing, purchasing, offering, or selling securities except for purchases or sales for his own personal account; and enjoined him from acting as or associating with a broker, dealer, or investment adviser for five years.  The final judgment, entered by the Court on April 7, 2026, further ordered Richards to pay disgorgement of $618,794, prejudgment interest of $128,915, and a $50,000 civil penalty, for a total monetary judgment of $797,709.

The SEC’s investigation was conducted by Brian Fitzsimons and David Frisof and was supervised by Brian Quinn and Michael Brennan. The SEC’s litigation was led by Mr. Fitzsimons and Rachel Yeates and was supervised by James Carlson.