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Gregory J. Duffy (CRD No. 5145614) * * * * * * * * * * * * * * * * * |
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CONSENT ORDER CO-07-7425-S |
PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (the “Commissioner”) is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies promulgated under the Act (the “Regulations”);
WHEREAS, Gregory J. Duffy (“Duffy”) was associated with New Castle Financial Services LLC (CRD No. 102380) from approximately May 12, 2006 to April 12, 2007, but was not registered as an agent of New Castle Financial Services LLC under the Act;
WHEREAS, New Castle Financial Services LLC maintains or has maintained an unregistered branch office at 4 Old Mill Plain Road, Danbury, Connecticut (the “Danbury Office”);
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking, has conducted an investigation (the “Investigation”) pursuant to Section 36b-26(a) of the Act into the activities of Duffy to determine whether Duffy had violated, was violating or was about to violate any provision of the Act or the Regulations;
WHEREAS, Section 36b-31(a) of the Act, provides, in relevant part, that “[t]he commissioner may from time to time make … such … orders as are necessary to carry out the provisions of sections 36b-2 to 36b-33, inclusive”;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes provides, in relevant part, that “[u]nless precluded by law, a contested case may be resolved by . . . consent order”;
WHEREAS, the Commissioner finds that the entry of this Consent Order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;
WHEREAS, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Duffy reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;
WHEREAS, Duffy, without admitting or denying any of the Commissioner’s allegations or findings, expressly consents to the Commissioner’s jurisdiction under the Act and to the terms of this Consent Order;
WHEREAS, Duffy, through his execution of this Consent Order, represents and agrees that none of the violations alleged in this Consent Order shall occur in the future;
ALLEGATIONS
WHEREAS, as a result of the Investigation, the Division obtained evidence that from October 2006 through February 2007, Duffy violated Section 36b-6(a) of the Act by transacting business as an agent of New Castle Financial Services LLC from the Danbury Office while Duffy was not registered as an agent of New Castle Financial Services LLC under the Act;
WHEREAS, as a result of the Investigation, the Division obtained evidence that from October 2006 through February 2007, while associated with New Castle Financial Services LLC, Duffy violated Section 36b-4(b) of the Act by utilizing scripted sales presentations which contained false and misleading statement of material fact and which had not been reviewed or approved by management of New Castle Financial Services LLC;
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 under Sections 36b-27(a) and 36b-27(d) of the Act against Duffy based on the following, all of which are more fully described above, and which Duffy neither admits nor denies:
| 1. | From October 2006 through February 2007, Duffy violated Section 36b-6(a) of the Act by transacting business as an agent of New Castle Financial Services LLC from the Danbury Office while Duffy was not registered as an agent of New Castle Financial Services LLC under the Act; |
| 2. | From October 2006 through February 2007, while associated with New Castle Financial Services LLC, Duffy violated Section 36b-4(b) of the Act by utilizing scripted sales presentations which contained false and misleading statements of material fact and which had not been reviewed or approved by management of New Castle Financial Services LLC; |
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Duffy, through his execution of this Consent Order, voluntarily waives the following rights:
| 1. | To be afforded written notice and an opportunity for a hearing within the meaning of Section 36b-27 of the Act and Sections 4-177(a) and 4-177(b) of the Connecticut General Statutes; |
| 2. | To present evidence and argument and to otherwise avail himself of Section 36b-27 of the Act and Section 4-177c(a) of the Connecticut General Statutes; |
| 3. | To present his position in a hearing in which he 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. |
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Duffy, through his execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing on him the following sanctions:
| 1. | For a period of ten (10) years commencing on the date this Consent Order is issued by the Commissioner, Duffy is barred from acting in Connecticut as a broker-dealer, agent, investment adviser, investment adviser agent or agent of issuer as such terms are defined in Section 36b-3 of the Act, as amended by Public Act 03-84; |
| 2. | Notwithstanding paragraph 1 of this Consent to Entry of Sanctions, after seven (7) years from the date this Consent Order is issued by the Commissioner, Duffy may apply for registration as a broker-dealer, broker-dealer agent, investment adviser, investment adviser agent or agent of issuer in Connecticut, provided, until full expiration of the tenth year from the date of entry of this Consent Order, the Commissioner, in the Commissioner’s sole discretion, may enter Duffy’s name on the appropriate register, or deny Duffy’s registration, or restrict or impose conditions on any such registration without making the findings required by Section 36b-15(a) of the Act, as from time to time amended, or complying with the requirements of Sections 36b-15(f) and (g) of the Act, as from time to time amended; |
| 3. | Duffy 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; |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | If Duffy fails to comply with any terms of this Consent Order or if any representation made by Duffy and set forth herein is subsequently determined to be untrue, the Commissioner may initiate administrative or judicial proceedings against Duffy to enforce this Consent Order or to sanction Duffy for violating an order of the Commissioner, or may take any other action authorized under the Act or any other applicable law, including the issuance of fines or penalties as provided by the Act; |
| 3. | This Consent Order shall not preclude additional proceedings by the Commissioner against Duffy for acts or omissions not specifically addressed in this Consent Order or for acts and/or omissions that do not arise from the facts or transactions addressed herein; and |
| 4. | This Consent Order shall become final when issued. |
________/s/_________
Howard F. Pitkin
Banking Commissioner
So ordered at Hartford, Connecticut
this 18th day of September 2007.
CONSENT TO ENTRY OF ORDER
I, Gregory J. Duffy, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I voluntarily consent to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
___________/s/____________________
Gregory J. Duffy
On this the 6 day of September 2007, before me, Linda R. Decker, the undersigned officer, personally appeared Gregory J. Duffy, 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
Date Commission Expires: 1-4-2010