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IN THE MATTER OF: JHS CAPITAL ADVISORS, INC. * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-10-7780-S |
PRELIMINARY STATEMENT
WHEREAS, JHS, 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; and
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, JHS, 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; |
2. | To present evidence and argument and to otherwise avail itself of Section 4-177c(a) of the Connecticut General Statutes; |
3. | To present its position in a hearing in which it 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 FINDINGS
WHEREAS, JHS, through its execution of this Consent Order, accepts and consents to the entry of the following Findings by the Commissioner:
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; and |
2. | JHS, by failing to itemize and disclose to its Connecticut clients the fee classified as “Postage and Handling” on the trade confirmations, which fee ranged from $7.50 to $100.00 per transaction, engaged in conduct which would support proceedings under Section 36b-15(a)(2)(H) of the Act; |
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, JHS, through its execution of this Consent Order, consents to the Commissioner issuing an order imposing on it the following sanctions:
1. | JHS, its representatives, agents, employees, affiliates, assigns, successors in interest, and those persons in active concert or participation with them 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 forty-five (45) days from the date this Consent Order is entered by the Commissioner, JHS shall provide the Division with proof that: 1) with respect to all transactions effected between January 1, 2008 and March 31, 2010, JHS has reimbursed its Connecticut customers the difference between the amount of the “Postage and Handling” fee paid by its Connecticut customers for each transaction and the actual amount of JHS’ ticket and clearing charge and the postage fee assessed by its clearing firm; and 2) JHS has sent correspondence to its Connecticut customers receiving the reimbursement explaining that the “Postage and Handling” fee reimbursement was a result of an examination conducted by the Division; |
3. | No later than the date this Consent Order is entered by the Commissioner, JHS shall provide to the Division Director for review and approval the letter that will be sent to those Connecticut customers eligible for the “Postage and Handling” fee reimbursement described in paragraph 2 above; and |
4. | No later than the date this Consent Order is entered by the Commissioner, JHS shall remit to the Department of Banking, via certified bank check, payable to “Treasurer, State of Connecticut”, or by wire transfer, the sum of ten thousand dollars ($10,000) 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 JHS 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 JHS 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 26th day of October, 2010. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Paul R. Richardson, state on behalf of JHS Capital Advisors, 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 JHS Capital Advisors, Inc., that JHS Capital Advisors, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that JHS Capital Advisors, Inc. voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
JHS Capital Advisors, Inc. | |
By | ______/s/_____________ |
Paul R. Richardson | |
Chief Executive Officer |
On this 21th [sic] day of October, 2010, personally appeared Paul R. Richardson, [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 JHS Capital Advisors, Inc., a corporation, and acknowledged the same to be his free act and deed, before me.
_____/s/________________________
Notary Public
Date Commission Expires: 8/26/11