A summary of Southern California-related business litigation developments during the past week.

SEC Settles With Investment Adviser: The Securities and Exchange Commission said Monday that it initiated administrative proceedings against Los Angeles investment adviser Patterson Capital Corp. and New York broker-dealer Goodrich Securities, but simultaneously accepted their settlement offers. The SEC said Patterson Capital and owner Joseph B. Patterson improperly used commissions from client accounts to pay for marketing services benefitting Patterson Capital, and defrauded clients by not telling them how the commissions were being used. Patterson allegedly paid for the marketing through Goodrich. The SEC censured Patterson and his company as well as Goodrich and ordered Patterson Capital to make full disclosure to its clients. (Released June 25, 1990. File No. 3-7349)