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CANTOR FITZGERALD & CO. * * * * * * * * * * * * * * * * * * |
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STIPULATION AND
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WHEREAS, Cantor Fitzgerald & Co. (“Cantor”) is a broker-dealer with its principal office at 110 East 59th Street, 4th Floor, New York, New York 10022. Cantor is registered as a broker-dealer under Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”);
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of the Act and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;
WHEREAS, in connection with an examination of Cantor, the staff of the Securities and Business Investments Division (“Division”) of the Department of Banking (“Department”) ascertained that Cantor employed three unregistered broker-dealer agents who had relocated to Cantor’s branch office in Connecticut (“Connecticut branch office”). The three unregistered broker-dealer agents did not transact any securities business for any retail or institutional clients that reside or are domiciled in Connecticut;
WHEREAS, the three unregistered broker-dealer agents in the Connecticut branch office filed for registration as broker-dealer agents of Cantor under the Act after being apprised of the Division’s concerns, and such registrations are currently effective;
WHEREAS, Section 36b-(6)(b) [sic] of the Act provides, in pertinent part, that “[n]o broker-dealer shall employ an agent unless such agent is (1) registered under sections 36b-2 to 36b-34, inclusive, or (2) an associated person who represents a broker-dealer in effecting transactions described in subdivisions (2) and (3) of Section 15(h) of the Securities Exchange Act of 1934”;
WHEREAS, violations of Section 36b-6(b) of the Act would support the initiation of administrative proceedings under Sections 36b-15 and 36b-27 of the Act;
WHEREAS, an administrative proceeding initiated under Sections 36b-15 and 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(4) of the General Statutes of Connecticut, as amended by Public Act 15-61;
WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations provide that a contested case may be resolved by stipulation or agreed settlement, unless precluded by law;
WHEREAS, Cantor desires to settle the matter described herein and, without either admitting or denying 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 matter described herein;
WHEREAS, Cantor expressly consents to the Commissioner’s jurisdiction under the Act and to the terms of this Stipulation and Agreement;
WHEREAS, Cantor, 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;
AND WHEREAS, Cantor specifically assures the Commissioner that none of the violations alleged in this Stipulation and Agreement shall occur in the future.
NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
| 1. |
No later than the date this Stipulation and Agreement is executed by the Commissioner, Cantor shall remit to the Department by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” the sum of two thousand one hundred dollars ($2,100), one thousand five hundred dollars ($1,500) of which shall constitute an administrative fine and six hundred dollars ($600) of which shall represent reimbursement for past due broker-dealer agent registration fees; |
| 2. |
Cantor, its officers, directors, representatives, agents, employees, affiliates, and successors in interest 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; |
| 3. | Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Cantor 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 of the Stipulation and Agreement; and |
| 4. | This Stipulation and Agreement shall become binding when executed by Cantor and the Commissioner. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.
| Dated at Hartford, Connecticut, | ____/s/_____________ | |
| this 5th day of January 2017. | Jorge L. Perez | |
| Banking Commissioner |
I, Shawn Matthews, state on behalf of Cantor Fitzgerald & Co., 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 Cantor Fitzgerald & Co.; [and] that Cantor Fitzgerald & Co. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
| Cantor Fitzgerald & Co. | ||
| By: | __________/s/____________ | |
| Name: Shawn Matthews | ||
| Title: Chief Executive Officer |
State of: New York
County of: Queens
On this the 20th day of December 2016, before me, the undersigned officer, personally appeared Shawm Matthews [sic], who acknowledged himself to be the CEO of Cantor Fitzgerald & Co., a New York partnership, and that he, as such Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the partnership by himself as CEO.
In witness whereof I hereunto set my hand.
_____/s/_________________________
Notary Public
Date Commission Expires: 8/30/2017