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IN THE MATTER OF: ERIC JOHN WEISS * * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER CO-09-7664-S |
PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (the “Commissioner”) is charged with the administration of 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 promulgated under the Act (the “Regulations”);
WHEREAS, Eric John Weiss (“Weiss”) has been registered under the Act as a broker-dealer agent of American Capital Partners, LLC (CRD No. 119249) since June 15, 2006;
WHEREAS, the Commissioner, acting pursuant to Section 36b-26 of the Act and through the Securities and Business Investments Division (the “Division”) of the Department of Banking, has conducted an investigation into the activities of American Capital Partners, LLC and its agents to determine whether they, or any of them, have violated, are violating or are about to violate any provision of the Act or any regulation or order under the Act;
WHEREAS, as a result of such investigation, the Division obtained evidence, as more fully described herein, that would support the initiation of administrative proceedings under Section 36b-15 of the Act to suspend or revoke Weiss’ agent registration under the Act and/or proceedings under Section 36b-27 of the Act seeking the entry of an order to cease and desist and/or an order imposing an administrative fine against Weiss;
WHEREAS, an administrative proceeding under Sections 36b-15 and 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
WHEREAS, Section 4-177(c) of Chapter 54 of the Connecticut General Statutes provides that"[u]nless precluded by law, a contested case may be resolved by stipulation, agreed settlement, or consent order or by the default of a party";
WHEREAS, Section 36b-31(a) of the Act provides, in part, that: “The Commissioner may from time to time make, amend and rescind such ... orders as are necessary to carry out the provisions of Sections 36b-2 to 36b-33, inclusive [of the Connecticut Uniform Securities Act]”;
WHEREAS, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Weiss reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;
WHEREAS, Weiss, 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
WHEREAS, Weiss, through his execution of this Consent Order, represents and agrees that none of the violations alleged in this Consent Order shall occur in the future;
ALLEGATIONS
WHEREAS, as a result of the investigation, the Division obtained evidence that: 1) prior to becoming registered as an agent of American Capital Partners, LLC under the Act, Weiss violated Section 36b-6(a) of the Act by transacting business in an unregistered capacity for that firm; 2) Weiss engaged in a dishonest or unethical practice within the meaning of Sections 36b-4(b) and 36b-15(a)(2)(H) of the Act by falsely reporting on firm records that the securities transactions he effected for Connecticut customers while unregistered were associated with a New Jersey address; and 3) Weiss engaged in conduct made actionable by Section 36b-31-15b(a)(8) of the Regulations by recommending unsuitable investments to Connecticut customers;
WHEREAS, American Capital Partners, LLC has furnished the Division with proof that it has extended to those Connecticut customers having potential suitability claims a rescission offer totaling approximately $12,985;
FINDINGS OF THE COMMISSIONER AS TO EVIDENTIARY SUFFICIENCY TO INITIATE ADMINISTRATIVE PROCEEDINGS
WHEREAS, the Commissioner finds that sufficient grounds would exist to initiate administrative proceedings against Weiss under Sections 36b-15(a)(2)(B), 36b-15(a)(2)(H), 36b-27(a) and 36b-27(d) of the Act as more fully described above;
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Weiss, through his execution of this Consent Order, voluntarily waives the following rights:
| 1. |
To be afforded written notice and an opportunity for a hearing within the meaning of Sections 36b-15(f) and 36b-27 of the Act and Sections 4-177(a) and 4-177(b) of the Connecticut General Statutes; |
| 2. |
To present evidence and argument and to otherwise avail himself of Sections 36b-15 and 36b-27 of the Act and Section 4-177c(a) of the Connecticut General Statutes; |
| 3. | To present his position in a hearing in which he 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 SANCTIONS
WHEREAS, Weiss, through his execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing on him the following sanctions:
| 1. | Effective on the date this Consent Order is entered by the Commissioner, Weiss’ registration as an agent in Connecticut is hereby REVOKED; |
| 2. | For a period of seven (7) years commencing on the date this Consent Order is entered by the Commissioner, Weiss is BARRED from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser, investment adviser agent or agent of issuer as such terms are defined in Section 36b-3 of the Act; |
| 3. | During the term of such bar, Weiss shall not rely on any definitional exclusion or exemption under the Act that would otherwise excuse registration by a person transacting business in Connecticut as an agent of issuer, broker-dealer agent, investment adviser agent, broker-dealer or investment adviser; |
| 4. | During the term of such bar, Weiss shall refrain from (1) supervising any broker-dealer agents with respect to securities business transacted in or from Connecticut or with respect to Connecticut-based securities brokerage accounts; and (2) acting as a finder for compensation, receiving or splitting commissions or similar remuneration and/or receiving referral fees in conjunction with the offer, sale or purchase of securities effected in or from Connecticut; |
| 5. | After five (5) years have elapsed from the date this Consent Order is entered by the Commissioner, Weiss may reapply for registration under the Act, provided he presents to the Division Director, concurrent with such application, a written submission stating that he has not been the subject of any securities-related complaint, action or proceeding since the entry of this Consent Order and that he has at all times been in compliance with this Consent Order. The Division Director, in the Director’s sole discretion, may enter Weiss’ name on the appropriate register, deny Weiss’ registration, or restrict or impose conditions on any such registration without making the findings required by Section 36b-15(a) of the Act or complying with the requirements of subsections (f) and (g) of Section 36b-15 of the Act; and |
| 6. | Weiss 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; |
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 Weiss if the Commissioner determines that compliance is not being observed with the terms hereof; |
| 3. | This Consent Order shall not preclude additional proceedings by the Commissioner against Weiss for acts or omissions not specifically addressed in this Consent Order or for acts and/or omissions that do not arise from the facts or transactions addressed herein; and |
| 4. | This Consent Order shall become final when entered. |
________/s/_________
Howard F. Pitkin
Banking Commissioner
So ordered at Hartford, Connecticut
this 9th day of June 2009.
CONSENT TO ENTRY OF ORDER
I, Eric John Weiss, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I voluntarily consent to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
_________/s/_________________
Eric John Weiss
On this 23 day of April 2009, personally appeared Eric John Weiss, signer of the foregoing Consent Order, who, being duly sworn, did acknowledge the same to be his free act and deed, before me.
____________/s/___________________
Notary Public
Date Commission Expires: 07/18/2009