* * * * * * * * * * * * * * * * * *
Sandgrain Securities, Inc. * * * * * * * * * * * * * * * * * * |
* * * * * * * * * * |
CONSENT ORDER NO. CO-2007-7445-S |
PRELIMINARY STATEMENT
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Sandgrain, through its execution of this Consent Order, voluntarily waives the following rights:
1. | To be afforded an opportunity for a hearing within the meaning of Sections 36b-15(f) and 36b 27(d)(2) of the Act, and Section 4 177(a) of the Connecticut General Statutes; |
2. | To present evidence and argument and to otherwise avail itself of Sections 36b-15(f) and 36b 27(d)(2) of the Act, and Section 4 177c(a) of the Connecticut General Statutes; |
3. | To present its position in a hearing in which it may be 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, Sandgrain, 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; |
2. | In contravention of Section 36b-16 of the Act, Sandgrain, through two of its representatives, offered and sold to two Connecticut residents securities in Global General Technologies, True Energy Trust, Nav Energy Trust, Tristar Oil & Gas, and Sure Energy Inc. (collectively, the “Securities”) and that the Securities were never registered in Connecticut nor were they exempt from registration under Section 36b 21 of the Act, nor were they covered securities as defined in Section 36b-3(7) of the Act; |
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Sandgrain, through its execution of this Consent Order, consents to the Commissioner issuing an order imposing on it the following sanctions:
1. | Sandgrain, 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, such conduct including, without limitation, effecting transactions in unregistered securities in violation of Section 36b-16 of the Act; |
2. | No later than the date this Consent Order is entered by the Commissioner, Sandgrain shall remit to the department, via certified bank check, payable to "Treasurer, State of Connecticut", the sum of three thousand, five hundred dollars ($3,500), two thousand dollars ($2,000) of which shall constitute an administrative fine, and one thousand, five hundred dollars ($1,500) of which shall defray the Division’s investigative costs; |
3. | Sandgrain shall reimburse the Department of Banking for the costs associated with one or more future examinations of any of Sandgrain’s offices to be conducted by the Division within twenty-four (24) months following the Commissioner’s entry of this Consent Order, such amount not to exceed two thousand five hundred dollars ($2,500) in total. Amounts due under this paragraph shall be remitted to the Commissioner via check, payable to “Treasurer, State of Connecticut,” within thirty (30) days following the completion of the examination(s); |
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 Sandgrain 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 Sandgrain and reflected herein are subsequently discovered to be untrue; and |
3. | This Consent Order shall become final when issued. |
________/s/_________
Howard F. Pitkin
Banking Commissioner
this 10th day of October 2007.
CONSENT TO ENTRY OF ORDER
I, Peter D. Grassel, state on behalf of Sandgrain Securities, 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 Sandgrain Securities, Inc.; that Sandgrain Securities, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Sandgrain Securities, Inc. voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
Sandgrain Securities, Inc.
By:
________/s/_______________
Peter D. Grassel, President
State of: [Blank in Original]
County of: [Blank in Original]
On this the [blank in original] day of [blank in original], 2007, Peter D. Grassel personally appeared before me and acknowledged that he is the President of Sandgrain Securities, Inc., a corporation, and that he, being authorized to do so, executed the foregoing instrument for the purposes therein contained as an officer of the corporation.
In witness whereof I hereunto set my hand.
_______________/s/_____________
Notary Public
My Commission Expires: July 16, 2010