Sean A. Brady v. John R. Ashcroft and David M. Minnick

Jefferson City, Missouri securities law lawyer represented Plaintiff, who sued Defendants seeking a writ of prohibition.



The Securities Division of the Office of the Secretary of State filed an administrative petition requesting that the Commissioner of Securities order civil penalties, restitution, and other remedies against Sean A. Brady. The petition alleged that Brady had violated multiple provisions of the Missouri Securities Act of 2003, § 409.1-101 et seq.,1 while acting as an investment adviser.

While the Securities Division's administrative petition was pending, Brady filed a petition for a writ of prohibition in the Circuit Court of Cole County, contending that the Commissioner lacked authority to take enforcement action against him. The circuit court granted a writ of prohibition barring the Commissioner from proceeding. The circuit court concluded that the Commissioner lacked regulatory jurisdiction over Brady because he was no longer a "registrant” subject to the strictures of the Securities Act. The court also concluded that the administrative enforcement action was barred because Brady had reached a settlement with the private investors he was accused of defrauding.

The Commissioner appeals. Because we conclude that the Commissioner has statutory authority to proceed against Brady on at least some of the legal theories asserted in the Securities Division’s petition, we reverse the circuit court’s judgment.