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COLUMBUS ADVISORY * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-14-8172-S |
I. PRELIMINARY STATEMENT
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Columbus, through its execution of this Consent Order, voluntarily waives the following rights:
1. | To be afforded notice and an opportunity for a hearing within the meaning of Sections 36b-27 and 36b-15(f) of the Act and Section 4-177(a) of the General Statutes of Connecticut; |
2. | To present evidence and argument and to otherwise avail itself of Sections 36b-27 and 36b-15(f) of the Act and. Section 4-177c(a) of the General Statutes of Connecticut; |
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. |
III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Columbus, through its execution of this Consent Order, acknowledges the following allegations of the Commissioner and admits sufficient evidence exists for the Commissioner to issue an order to cease and desist, an order suspending or revoking Columbus’ registration as a broker-dealer in Connecticut, and an order imposing a maximum administrative fine of one hundred thousand dollars ($100,000) per violation of the Act, or any regulation, rule or order adopted or issued under the Act:
1. | Columbus engaged in dishonest or unethical business practices within the meaning of Section 36b-31-15a(b) of the Regulations by employing an individual who engaged in “cold-calling” at least one Connecticut investor and asking qualifying questions at a time when the individual was not registered as an agent under the Act; |
2. | Columbus violated Section 36b-4 of the Act and engaged in dishonest or unethical business practices within the meaning of Section 36b-31-15a(20) of the Regulations by employing an agent who used research materials, sales presentations and/or sales scripts in a misleading manner; |
3. | Columbus violated Section 36b-6(b) of the Act by employing an agent who was not registered under the Act; and |
4. | Columbus violated Section 36b-31-6f of the Regulations by failing to establish, enforce and maintain a system for supervising the activities of its agents and its Connecticut branch office operations reasonably designed to achieve compliance with applicable securities laws and regulations. |
WHEREAS, the foregoing conduct would support administrative proceedings against Columbus under Sections 36b-15(a)(2)(B), 36b-15(a)(2)(H) and 36b-15(a)(2)(K) of the Act as well as subsections (a) and (d) of Section 36b-27 of the Act;
AND WHEREAS, Columbus acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below.
IV. CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Columbus, through its execution of this Consent Order, consents to the Commissioner’s entry of an order imposing on it the following sanctions:
1. | Columbus, 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, rule or order adopted or issued under the Act, either directly or through any person, organization or other device, including without limitation: (a) employing unregistered personnel who engage in “cold-calling” Connecticut clients and prospective clients and asking those clients and prospective clients qualifying questions, (b) permitting its agents to utilize research materials, sales presentations and/or sales scripts in a misleading manner, (c) employing unregistered agents to transact securities business in or from Connecticut, and (d) failing to establish, enforce and maintain a system for supervising the activities of its agents and its Connecticut branch office operations that is reasonably designed to achieve compliance with applicable securities laws and regulations. |
2. | No later than the date this Consent Order is entered by the Commissioner, Columbus shall remit to the Department, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of five thousand dollars ($5,000) as an administrative fine; and |
3. | Columbus will reimburse the Division for the cost of a future regulatory examination to be conducted within twenty-four months (24) following the entry of this Consent Order, the cost of which examination shall not exceed three thousand five hundred dollars ($3,500). |
V. 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 Columbus 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 Columbus and reflected herein are subsequently discovered to be untrue; |
3. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Columbus based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act; and |
4. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut, | _______/s/_________ | |
this 26th day of November 2014. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Michael Murphy, state on behalf of Columbus Advisory Group, Ltd., 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 Columbus Advisory Group, Ltd.; that Columbus Advisory Group, Ltd. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Columbus Advisory Group, Ltd. consents to the entry of this Consent Order.
Columbus Advisory Group, Ltd. | |
By: | _____/s/________________ |
Michael Murphy | |
Title CEO |
State of: New York
County of: Nassau
On this the 6 day of November 2014 before me, Michael Murphy [sic], the undersigned officer, personally appeared [blank in original], who acknowledged him/herself to be the President / CEO of Columbus Advisory Group, Ltd., and that he/she, as such [blank in original], being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by him/herself as President / CEO.
_____/s/____________________ |
Michael O. Bunsis |
Notary Public |
Date Commission Expires: 3/17/15 |