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WACHOVIA SECURITIES, LLC * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-10-7710-S |
PRELIMINARY STATEMENT
WHEREAS, the Division, through the Investigation, obtained evidence that the Allegrini Notes were not registered under Section 36b-16 of the Act, nor were they the subject of an exemptive claim or claim of covered security status under Section 36b-21 of the Act;
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Wachovia Securities, LLC 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, Wachovia Securities, LLC 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. | In connection with the conduct of Allegrini and in contravention of Section 36b-31-6f(b) of the Regulations, Wachovia Securities, LLC failed to establish, enforce, and maintain a system for supervising the activities of its agents that was reasonably designed to achieve compliance with applicable securities laws and regulations; |
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Wachovia Securities, LLC through its execution of this Consent Order, consents to the Commissioner issuing an order imposing on it the following sanctions:
1. | Wachovia Securities LLC, 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 organizational or other device; and |
2. | No later than the date this Consent Order is entered by the Commissioner, Wachovia Securities LLC shall remit to the Department of Banking, via certified bank check or bank wire, payable to "Treasurer, State of Connecticut", the sum of seventy five thousand dollars ($75,000) which shall constitute an administrative fine; |
CONSENT ORDER
NOW THEREFORE,
the Commissioner enters the following:1. | The Findings and 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 Wachovia Securities, LLC 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; and |
3. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut | _______/s/_________ | |
this 29th day of December, 2010. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Paul Costello, state on behalf of Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC 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 Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC, that Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
Wells Fargo Advisors, LLC | |
f/k/a Wachovia Securities, LLC | |
By | ______/s/_________________ |
Paul Costello | |
Senior Director of Brokerage |
On this 15th day of November 2010, personally appeared Paul Costello, 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 Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC, a limited liability company, and acknowledged the same to be his free act and deed, before me.
_____/s/__________________________
Notary Public
Date Commission Expires: May 22, 2012