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JOHN THOMAS FINANCIAL * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-11-7904-S |
PRELIMINARY STATEMENT
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking, conducted an examination of JTF pursuant to Section 36b-14(d) of the Act and 36b-31-14f of the Regulations, and a related investigation under Section 36b-26 of the Act to determine whether JTF had violated, was violating or was about to violate any provision of the Act or any regulation or order under the Act (the “Investigation and Examination”);
WHEREAS, JTF, 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, JTF, 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, JTF, 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. | JTF violated Section 36b-31-6f(b) of the Regulations by failing to establish, enforce and maintain a supervisory system reasonably designed to achieve regulatory compliance. Specifically, JTF failed to supervise it agents who engaged in inaccurate disclosure practices with respect to the “Handling Fee” charged to its Connecticut customers; |
3. | The foregoing conduct would support administrative proceedings against JTF under Sections 36b-15(a)(2)(B) 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, JTF, through its execution of this Consent Order, consents to the Commissioner entering an order imposing on it the following sanctions:
1. | JTF, 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; |
2. | Within thirty (30) days of the entry of the Consent Order, JTF will provide the Division with proof that 1) it has reimbursed its Connecticut customers the difference between the amount of the “Handling Fee” paid by its Connecticut customers from July 2007 to July 2009 for each transaction and the actual amount of JTF’s ticket and clearing charge and the postage fee assessed by its clearing firm; and 2) it has sent correspondence to its Connecticut customers who received the reimbursement explaining that the “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, JTF shall remit to the Department of Banking, via certified bank check payable to "Treasurer, State of Connecticut", the sum of twenty thousand dollars ($20,000) 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 JTF 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 JTF 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 18th day of October 2011. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, George Belesis, state on behalf of John Thomas Financial 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 John Thomas Financial; that John Thomas Financial agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that John Thomas Financial voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
John Thomas Financial | |
By | ______/s/____________ |
George Belesis | |
President |
On this 13th day of October 2011, personally appeared George Belesis, 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 John Thomas Financial, a corporation, and acknowledged the same to be his free act and deed, before me.
_____/s/______________________________
Notary Public
Date Commission Expires: November 10, 2012