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CONSENT ORDER No. CO-12-7993-S |
PRELIMINARY STATEMENT
WHEREAS, Aegis, through its execution of this Consent Order, represents and agrees that none of the violations alleged in this Consent Order shall occur in the future;
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Aegis, through its execution of this Consent Order, voluntarily waives the following rights:
1. | To receive prior written notice within the meaning of Sections 36b-15(f), 36b-27(a), 36b-27(d) and 4-177(b) of the Connecticut General Statutes with respect to the matters described herein; |
2. | To present evidence and argument and to otherwise avail itself of Section 4-177c(a) of the Connecticut General Statutes with respect to the matters described herein; |
3. | To present its position in a hearing in which it is represented by counsel with respect to the matters described herein; |
4. | To have a written record of the hearing made and a written decision issued by a hearing officer with respect to the matters described herein; and |
5. | To seek judicial review of, or otherwise challenge or contest, the matters described herein, including the validity of this Consent Order; |
CONSENT TO ENTRY OF FINDINGS
WHEREAS, Aegis, through its execution of this Consent Order, accepts and consents to the entry of the following Findings by the Commissioner without admitting or denying them:
1. | The entry of this Consent Order is appropriate, in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act; |
2. | Although the actual confirmation disclosed the amount of the markup charged in a principal transaction, by sending a preliminary trade notification on at least one occasion to one of its customers that did not disclose the amount of the markup charged on principal transactions, Aegis violated Section 36b-31-14a(a) of the Regulations by not maintaining accurate records required to be kept by the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder; |
3. | Specifically with respect to the matters identified herein, Aegis violated Section 36b-31-6f(b) of the Regulations by failing to enforce a supervisory system reasonably designed to achieve regulatory compliance; |
4. | The foregoing conduct would support administrative proceedings against Aegis under Sections 36b-15(a)(2)(B), 36b-15(a)(2)(H) and 36b-15(a)(2)(K) of the Act as well as subsections (a) and (d) of Section 36b-27 of the Act; |
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Aegis, through its execution of this Consent Order, consents to the Commissioner entering an order imposing on it the following sanctions:
1. | Aegis, its representatives, agents, employees, affiliates, assigns, and successors in interest 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 person, organization or other device; and |
2. | No later than the date this Consent Order is entered by the Commissioner, Aegis shall remit to the Department of Banking, via certified bank check payable to "Treasurer, State of Connecticut", the sum of fifteen thousand dollars ($15,000) as an administrative fine; |
CONSENT ORDER
NOW THEREFORE,
the Commissioner enters the following:
1. | The Sanctions 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 Aegis 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 or if any representations made by Aegis and reflected herein are subsequently discovered to be untrue; and |
3. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut | _______/s/_________ | |
this 27th day of April 2012. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Robert J. Eide, state on behalf of Aegis Capital Corp. 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 Aegis Capital Corp.; that Aegis Capital Corp. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Aegis Capital Corp. voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
Aegis Capital Corp. | |
By | ________/s/______________ |
Robert J. Eide, CEO |
On this 4th day of April 2012, personally appeared Robert J. Eide, signer of the foregoing Consent Order, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Aegis Capital Corp., a corporation, and acknowledged the same to be his free act and deed, before me.
_____/s/________________________
Notary Public
Date Commission Expires: 12/13/2014