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JOSEPH P. LUCIA &
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STIPULATION AND No. ST-10-7818-S |
WHEREAS, the Banking Commissioner (the “Commissioner”) is responsible for administering 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, Joseph P. Lucia & Associates, LLC (“JPL”) is an investment adviser organized in New York on July 7, 2008, and has its principal office at 888 Route Six Plaza, Mahopac, New York. JPL has been registered as an investment adviser in New York since July 23, 2008;
WHEREAS, Joseph Paul Lucia (“Lucia”) is the Managing Principal and Chief Compliance Officer of JPL;
WHEREAS, on February 17, 2010, JPL filed with the Commissioner an application to register as an investment adviser under the Act;
WHEREAS, on March 1, 2010, Lucia filed with the Commissioner an application to register as an investment adviser agent of JPL under the Act;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking has conducted an investigation of JPL and Lucia pursuant to Section 36b-8 of the Act;
WHEREAS, in connection with its Connecticut registration application, JPL apprised the Division that, commencing in 2009, it had rendered investment advisory services to Connecticut clients;
WHEREAS, such unregistered investment advisory activity, if proven, would contravene Section 36b-6(c)(1) of the Act and support the initiation of administrative proceedings to deny or condition JPL’s investment adviser registration under Section 36b-15(a)(2)(B) of the Act;
WHEREAS, an administrative proceeding initiated under Section 36b-15 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
WHEREAS, JPL has submitted documentation to the Division indicating that JPL had relied upon a third party filing service to make JPL’s state registration filings;
WHEREAS, JPL represents that it will not maintain custody of client funds or securities without the prior written approval of the Division Director;
WHEREAS, Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;
WHEREAS, JPL desires to settle the matter described herein and, without either admitting or denying the truth of the Commissioner's allegations set forth hereinabove, 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, JPL, 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. |
JPL shall refrain from engaging, directly or indirectly, in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, including, without limitation, transacting business in or from this state as an investment adviser absent registration; |
| 2. |
No later than the date this Stipulation and Agreement is executed by the Commissioner, JPL shall remit to the department by certified bank check payable to “Treasurer, State of Connecticut” the sum of one thousand five hundred dollars ($1,500), seven hundred dollars ($700) of which shall constitute an administrative fine, three hundred dollars ($300) of which shall represent reimbursement for past due registration fees; and five hundred dollars ($500) of which shall be applied to defray the Division’s investigative costs; |
| 3. | Within sixty (60) days following the Commissioner’s execution of this Stipulation and Agreement, JPL shall submit to the Division Director in writing the names and credentials of at least two experienced securities compliance consultant candidates, who may be Connecticut-licensed attorneys, to assist JPL in fulfilling its obligations under this paragraph. In meeting its obligations hereunder, JPL shall only retain a compliance consultant concerning whose credentials the Division Director has voiced no objection. After six months have expired from the Commissioner’s signing of this Stipulation and Agreement, JPL shall meet and confer with such selected consultant to ensure that JPL is in compliance with this Stipulation and Agreement, the Act and the Regulations thereunder. After the initial consultation, JPL shall meet and confer with such consultant annually until two years have elapsed from the signing of this Stipulated Agreement by the Commissioner; |
| 4. | Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against JPL 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 or if any representation made by JPL and reflected herein is subsequently discovered to be untrue; and |
| 5. | This Stipulation and Agreement shall become binding when executed by JPL and the Commissioner. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.
| Dated at Hartford, Connecticut | _______/s/_________ | |
| this 9th day of August 2010. | Howard F. Pitkin | |
| Banking Commissioner |
I, Joseph P. Lucia, state on behalf of Joseph P. Lucia & Associates, 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 Joseph P. Lucia & Associates, LLC and that Joseph P. Lucia & Associates, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
| Joseph P. Lucia & Associates, LLC | |
| By | ________/s/_____________________ |
| Joseph P. Lucia | |
| Managing Principal and | |
| Chief Compliance Officer |
On this 27 day of July 2010, personally appeared Joseph P. Lucia, 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 Joseph P. Lucia & Associates, LLC, a limited liability company, and acknowledged the same to be his free act and deed, before me.
_____/s/________________________
Notary Public
My Commission Expires: July 18, 2013