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JOHN D. CROOKS ("Respondent") * * * * * * * * * * * * * * * * * |
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NOTICE OF INTENT TO REVOKE AND NOTICE OF RIGHT TO HEARING DOCKET NO. R-2009-7582-S |
I. PRELIMINARY STATEMENT
| 1. | The Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (“Act”), and the regulations promulgated thereunder (Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”). |
| 2. | Pursuant to Section 36b-26(a) of the Act, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, has conducted an investigation into the activities of Respondent to determine if he has violated, is violating or is about to violate provisions of the Act or Regulations. Section 36b-26(a) of the Act, provides, in pertinent part: The commissioner may, subject to the provisions of the Freedom of Information Act . . . (1) [m]ake such public or private investigations within or outside of this state as the commissioner deems necessary to determine whether any person has violated, is violating or is about to violate any provision of sections 36b-2 to 36b-33, inclusive, or any regulation or order thereunder . . . . |
| 3. | As a result of the investigation conducted by the Division, the Commissioner brings this administrative action pursuant to Section 36b-15(a) of the Act to revoke the agent registration of Respondent in Connecticut. Section 36b-15 of the Act provides, in pertinent part, that:
(a) The commissioner may, by order . . . revoke . . . any registration . . . if the commissioner finds that (1) the order is in the public interest, and (2) the . . . registrant . . . (C) has been convicted, within the past ten years, of . . . any felony, provided any . . . revocation of such registration shall be in accordance with the provisions of section 46a 80 . . . . Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part: No revocation . . . of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license. |
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II. RESPONDENT | |
| 4. | Respondent is an individual whose address last known to the Commissioner is 26 Canterbury Turnpike, Norwich, Connecticut 06360. |
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| 5. | From at least March 26, 2003 to at least February 7, 2008, Respondent was employed by GunnAllen Financial, Inc. (“GFI”), a broker-dealer registered under the Act. |
| 6. | On or about March 26, 2003, Respondent became registered as an agent of GFI in Connecticut. |
| 7. | On February 7, 2008, GFI filed with the Commissioner a Form U5, Uniform Termination Notice for Securities Industry Registration, to terminate Respondent’s registration as an agent of GFI. |
| 8. | On or about May 7, 2008, Respondent’s withdrawal from registration as an agent of GFI became effective. |
| 9. | On February 24, 2009, in the Superior Court of the State of Connecticut, Judicial District of New London, Respondent entered a plea of nolo contendere to felony larceny in the third degree, in violation of Section 53a-124 of the Connecticut General Statutes, for using his positions as treasurer of the Veterans Memorial High Stakes Bingo, Inc. (“Veterans”), and as treasurer of the Norwich Little League, Inc. (“Norwich”), to embezzle funds in the amount of Eight Thousand Five Hundred Dollars ($8,500) from Veterans, and funds in the amount of Four Thousand Six Hundred Fifty Dollars ($4,650) from Norwich. |
IV. STATUTORY BASIS FOR REVOCATION
OF REGISTRATION AS AGENT
| 10. | Paragraphs 1 through 9, inclusive, are incorporated and made a part hereof as if more fully set forth herein. |
| 11. | Respondent’s conviction of felony larceny in the third degree, in violation of Section 53a-124 of the Connecticut General Statutes, as more fully described in paragraph 9, is a conviction within the meaning of Section 36b-15(a)(2)(C) of the of the Act. |
V. NOTICE OF INTENT TO REVOKE REGISTRATION AS AGENT
AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has reason to believe that there are grounds to revoke Respondent’s for registration as agent, pursuant to Sections 36b-15(a)(2)(C) the of the Act;
WHEREAS, the Commissioner believes that the issuance of an order revoking registration as agent in Connecticut would be in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act;
AND WHEREAS, Section 36b-15(f) of the Act provides, in pertinent part, that “[n]o order may be entered under this section . . . without (1) appropriate prior notice to the . . . registrant . . . , (2) opportunity for hearing, and (3) written findings of fact and conclusions of law”.
NOW THEREFORE, notice is hereby given to Respondent that his registration as agent in Connecticut shall be revoked, subject to his right to request a hearing on the allegations set forth above.
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, within fourteen (14) days following his receipt of this Notice. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If Respondent will not be represented by an attorney at the hearing, the Appearance and Request for Hearing Form must be completed as “pro se” and mailed to the above address. Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a 1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on June 3, 2009, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
If Respondent fails to request a hearing within the prescribed time period, the Commissioner shall issue an order revoking registration as agent in Connecticut.
________/s/_________
Howard F. Pitkin
Banking Commissioner
Dated at Hartford, Connecticut,
this 15th day of April 2009.
CERTIFICATION
I hereby certify that on this 16th day of April 2009, the foregoing Notice of Intent to Revoke Registration as Agent and Notice of Right to Hearing was sent by registered mail, return receipt requested, to John D. Crooks, 26 Canterbury Turnpike, Norwich, Connecticut 06360, registered mail no. RB027869197US.
_______/s/__________
Paul A. Bobruff
Prosecuting Attorney