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IN THE MATTER OF: GRANITE SECURITIES, LLC * * * * * * * * * * * * * * * * * * * * * |
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STIPULATION No. ST-05-7247-S |
WHEREAS, the Banking Commissioner (the "Commissioner") is charged with the administration of 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 (the "Regulations") promulgated under the Act;
WHEREAS, the Commissioner, through the Securities and Business Investments Division of the Department of Banking, has conducted an investigation pursuant to Section 36b-26 of the Act into the activities of Granite Securities, LLC ("Granite"), a broker-dealer registered under the Act and having its principal office located at 27980 Main Road, P.O. Box 1307, Cutchogue, New York 11935 and of Granite's members, agents, employees and representatives to determine whether they, or any of them, have violated or are about to violate any provision of the Act or any Regulation or order under the Act;
WHEREAS, the Commissioner, as a result of such investigation, has obtained evidence that, from November 2004 until December 31, 2005, Granite transacted business from 7 Main Street, Stafford Springs, Connecticut (the "Stafford Springs Office") at a time when such location was not registered as a branch office as required by Section 36b-6(d) of the Act;
WHEREAS, on January 5, 2006, Granite filed an application to register the Stafford Springs Office as a branch office under Section 36b-6(d) of the Act and such registration has been declared effective under the Act;
WHEREAS, Section 4-177(c) of Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;
WHEREAS, Granite desires to settle the matters described herein and voluntarily enters into this Stipulation and Agreement, acknowledging that this Stipulation and Agreement is in lieu of any court action or administrative proceeding adjudicating any issue of fact or law on the matters described herein;
WHEREAS, Granite, through its execution of this Stipulation and Agreement, voluntarily waives any rights it may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;
NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
| 1. | Granite shall revise and implement supervisory and compliance procedures designed to prevent and detect violations of the branch office registration requirements of the Act and the Regulations thereunder; |
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2. |
No later than the date this Stipulation and Agreement is executed by the Commissioner, Granite shall remit to the department via certified bank check payable to "Treasurer, State of Connecticut" the sum of five hundred dollars ($500) as an administrative fine; |
| 3. | Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Granite based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof; and |
| 4. | This Stipulation and Agreement shall become binding when executed by both parties hereto. |
IN WITNESS WHEREOF , the undersigned have executed this Stipulation and Agreement on the dates indicated.
________/s/_________
John P. Burke
Banking Commissioner
this 3rd day of March 2006.
I, James Raymond Duffy, Jr., state on behalf of Granite Securities, LLC that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Granite Securities, LLC and that Granite Securities, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
Granite Securities, LLC
By
________/s/_______________
James Raymond Duffy, Jr.
Vice President and Chief Compliance Officer
On this 13 day of January 2006, personally appeared James Raymond Duffy, Jr., signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Granite Securities, LLC, a limited liability company, and acknowledged the same to be his free act and deed, before me.
_______________/s/_______________________
Notary Public/Commissioner of the Superior Court
My Commission Expires: 12-11-2006