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PRELIMINARY STATEMENT
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Mann, ACI and ACR, through their execution of this Consent Order, voluntarily waive the following rights:
1. | To receive prior written notice within the meaning of Sections 36b-27(a), 36b-27(d), 36b-15(f) and 4-177(b) of the Connecticut General Statutes; |
2. | To present evidence and argument and to otherwise avail themselves of Section 4-177c(a) of the Connecticut General Statutes; |
3. | To present their respective positions in a hearing in which each is represented by counsel; |
4. | To have a written record of the hearing made and a written decision issued by a hearing officer; and |
5. | To seek judicial review of, or otherwise challenge or contest, the matters described herein, including the validity of this Consent Order. |
FINDINGS OF THE COMMISSIONER AS TO EVIDENTIARY SUFFICIENCY
TO INITIATE ADMINISTRATIVE PROCEEDINGS
WHEREAS, the Commissioner finds that sufficient grounds would exist to initiate administrative proceedings against ACI, ACR and Mann under Section 36b-15 of the Act and proceedings against Mann and ACI under Section 36b-27 of the Act based on the following which ACI, ACR and Mann neither admit nor deny:
1. | ACI’s initial failure to adequately disclose Mann’s disciplinary history on Form ADV, Part 1B would support proceedings under Section 36b-15(a)(2)(A) of the Act to deny or condition ACI’s registration in Connecticut; |
2. | Mann, in certifying the accuracy of the information provided on behalf of ACI, violated Section 36b-23 of the Act by making a materially false or misleading statement in a document filed with the Commissioner. Such conduct would support the initiation of administrative proceedings against Mann under Section 36b-27(a) and 36b-27(d) of the Act; |
3. | The above described conduct of Mann, a control person of ACI and ACR, would support proceedings to deny the registrations of ACI and ACR pursuant to Section 36b-15(a)(2)(B) of the Act; and |
4. | The above described conduct of Mann would support proceedings to deny Mann’s registration as an investment adviser agent of ACR under Section 36b-15(a)(2)(B) of the Act. |
CONSENT TO ENTRY OF SANCTIONS AND REMEDIAL MEASURES
WHEREAS, Mann, ACI and ACR, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing on them the following sanctions and remedial measures:
1. | Mann shall cease and desist from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, either directly or through any organizational or other device; |
2. | Within sixty (60) days following the Commissioner’s entry of this Consent Order ACI and ACR shall submit to the Division Director in writing the names and credentials of at least two experienced securities compliance consultant candidates, who may be Connecticut-licensed attorneys, to assist ACI and ACR in fulfilling its obligations under this paragraph. In meeting its obligations hereunder, ACI and ACR shall only retain a compliance consultant concerning whose credentials the Division Director has voiced no objection. After six months have expired from the Commissioner’s entry of this Consent Order, ACI and ACR shall meet and confer with such selected consultant to ensure that ACI and ACR are in compliance with this Consent Order, the Act and the Regulations thereunder. After the initial consultation, ACI and ACR shall meet and confer with such consultant annually until two years have elapsed from the entry of this Consent Order by the Commissioner; |
3. | No later than the date this Consent Order is entered by the Commissioner, ACI and ACR, through Mann, shall remit to the department by certified bank check payable to “Treasurer, State of Connecticut” the sum of three thousand five hundred dollars ($3,500), three thousand dollars ($3,000) of which shall constitute an administrative fine and five hundred dollars ($500) of which shall be applied to defray the Division’s investigative costs; |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
1. | The Sanctions and Remedial Measures set forth above be and are hereby entered; |
2. | Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Mann, ACI and ACR, as the case may be, based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed with the terms hereof [sic]; and |
3. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut | _______/s/_________ | |
this 27th day of September, 2010. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Robert K. Mann, state individually and on behalf of Advisors Capital Investments, Inc. and Advisor’s Capital Research, Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Advisors Capital Investments, Inc. and Advisor’s Capital Research, Inc.; that I, Advisors Capital Investments, Inc. and Advisor’s Capital Research, Inc. agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I, Advisors Capital Investments, Inc. and Advisor’s Capital Research, Inc. voluntarily consent to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
Advisors Capital Investments, Inc. | |
By | ______/s/____________________ |
Robert K. Mann | |
President |
Advisors Capital Research, Inc. | |
By | ______/s/__________________ |
Robert K. Mann | |
President |
______/s/__________________ | |
Robert K. Mann (Individually) | |
On this the 22nd day of September 2010, before me, the undersigned officer, personally appeared Robert K. Mann, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_____________/s/___________________________________
Notary Public/Commissioner of the Superior Court
Date Commission Expires: Nov. 30, 2011