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IN RE APPLICATION OF: STEVEN BRETT SANDS * * * * * * * * * * * * * * * * * * * |
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STIPULATED AGREEMENT No. ST-09-7655-S |
WHEREAS, the Banking Commissioner (the “Commissioner”) is responsible for administering Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (the “Act”) and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies promulgated under the Act (the “Regulations”);
WHEREAS, Lane Capital Markets LLC (“LCM”) of 2425 Post Road, Suite 205, Southport, Connecticut has been registered as a broker-dealer under the Act since February 26, 2002;
WHEREAS, on May 14, 2009, Steven Brett Sands (“Steven Sands”), an individual having no previous affiliation with LCM, filed with the Commissioner an application for registration as a broker-dealer agent of LCM pursuant to Sections 36b-7 and 36b-32 of the Act;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking has conducted an investigation of Steven Sands pursuant to Section 36b-8 of the Act;
WHEREAS, as a result of such investigation, the Division ascertained that Steven Sands had been the subject of several complaints arising from his prior association with Sands Brothers & Co., Ltd. (CRD number 26816), a broker-dealer firm in which Steven Sands held a controlling interest and of which he served as chairman;
WHEREAS, as a result of such investigation, the Division also ascertained that on July 25, 2006, the NASD (n/k/a FINRA) fined Steven Sands $100,000 and suspended him from association with any NASD member in a principal capacity for sixty days based upon allegations that Steven Sands 1) failed to file a Rule 1017 application with the NASD seeking approval for the transfer of customer accounts; 2) allowed an individual to actively engage in activities at Sands Brothers & Company, Ltd. when the individual was not appropriately registered; and 3) wilfully failed to amend his Form U-4 to disclose a material fact in contravention of Article V, Section 2 of the NASD Bylaws (Docket/Case Number E1020041068-01);
WHEREAS, the above described FINRA sanctions would, if proven, support the initiation of administrative proceedings under Section 36b-15(a)(2)(F)(iii) of the Act to restrict or impose conditions on the securities or investment advisory activities that Steven Sands may perform in this state;
WHEREAS, Steven Sands neither admits nor denies that the allegations described above would support administrative proceedings under Section 36b-15 of the Act;
WHEREAS, LCM agrees to this Stipulated Agreement solely as a condition to its employment of Steven Sands as a broker-dealer agent in this state, and understands that this Stipulated Agreement does not constitute a finding by the Commissioner of a violation of any provision of the Act or any regulation or order under the Act by LCM, nor shall it operate as a restriction or limitation on the securities or investment advisory activities of LCM in the State of Connecticut;
WHEREAS, Steven Sands and LCM voluntarily agree to waive any right to a hearing upon the issuance of this Stipulated Agreement, and waive the right to seek judicial review or otherwise challenge or contest the validity of this Stipulated Agreement;
NOW THEREFORE, THE PARTIES HERETO DO AGREE AS FOLLOWS:
| 1) | During the term of his association with LCM, Steven Sands shall not act as a general securities principal supervising sales activities on behalf of LCM, be involved in the day-to-day compliance/sales supervision of other LCM agents, or supervise himself; |
| 2) | During the term of his association with LCM, Steven Sands shall not be supervised by Martin Sands (CRD number 1186904); |
| 3) | During the term of his association with LCM, Steven Sands’ securities activities in and from Connecticut shall be supervised by the compliance officer of LCM. Should such compliance officer leave the employ of LCM or otherwise be unable to perform the supervisory obligations described in this paragraph, LCM shall notify the Division Director in writing concerning the identity of the successor compliance officer within five business days following the prior compliance officer’s cessation of supervisory activities with respect to Steven Sands; |
| 4) | For three years, commencing on the date this Stipulated Agreement is signed by the Commissioner, LCM shall notify the Division Director promptly concerning any reportable disciplinary actions, including, without limitation, pending regulatory investigations and inquiries, involving Steven Sands, by filing the appropriate amendments to Steven Sands’ Form U-4 or Form U-5, as required by rules of the SEC, FINRA, and/or provisions of the Act and Regulations. LCM shall concurrently file a copy of any sales-related securities complaints or other reportable actions involving Steven Sands directly with the Division Director. In addition, LCM shall file a copy of any securities-related written reprimands, censures or warnings issued by LCM to Steven Sands; |
| 5) | Execution of this Stipulated Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Steven Sands based upon a violation of this Stipulated Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof or if any representation made by or on behalf of Steven Sands and reflected herein or in his application for agent registration is subsequently discovered to be untrue; |
| 6) | Nothing in this Stipulated Agreement shall be construed as limiting the Commissioner's ability to take enforcement action against Steven Sands based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act or supporting the initiation of proceedings under Section 36b-15 of the Act; |
| 7) | After three years have elapsed from the date this Stipulated Agreement is signed by the Commissioner, LCM may request that the Commissioner release it and Steven Sands from the provisions of this Stipulated Agreement by filing a written application with the Division Director setting forth the basis for the request. The Division Director shall review the request and make a decision based on the Director’s review. The Division Director may, at the sole discretion of the Division Director, grant, deny or condition the relief sought pursuant to this paragraph; |
| 8) | Pursuant to Section 36b-8 of the Act, the name “Steven Brett Sands” shall be and is hereby entered on the Register of Broker-dealer Agents; and |
| 9) | This Stipulated Agreement shall become binding when executed by all parties hereto. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulated Agreement on the dates indicated.
________/s/_________
Howard F. Pitkin
Banking Commissioner
Dated at Hartford, Connecticut
this 31st day of July 2009.
I, Steven Brett Sands, being duly sworn, do state that I agree voluntarily and without threat or coercion of any kind to this Stipulated Agreement Conditioning Registration as a Broker-dealer Agent, voluntarily waiving any right to a hearing on the matters described herein.
________/s/_________
Steven Brett Sands
Subscribed and sworn to before me
this 28 day of July 2009.
_______________/s/______________________
Notary Public/Commissioner of the Superior Court
My Commission Expires: 10/31/2013
I, John D. Lane, President and Chief Executive Officer of Lane Capital Markets LLC, state on behalf of that entity that I have read the foregoing Stipulated Agreement Conditioning Registration as a Broker-dealer Agent with respect to Steven Brett Sands; that I know and fully understand its contents; that I am authorized to execute the same on behalf of Lane Capital Markets LLC; and that Lane Capital Markets LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein with respect to Steven Brett Sands , expressly waiving any right to a hearing on the matters described herein.
Lane Capital Markets LLC
By _________/s/__________________
John D. Lane
President and Chief Executive Officer
On this 9th day of July 2009, personally appeared John D. Lane, signer of the foregoing Stipulated Agreement Conditioning Registration as a Broker-dealer Agent with respect to Steven Brett Sands, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Lane Capital Markets LLC and acknowledged the same to be his free act and deed, before me.
____________/s/_________________________
Notary Public
My Commission Expires: 8/31/2011