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JUSTIN MATTHEW DEVER ("Dever") * * * * * * * * * * * * * * |
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CONSENT ORDER DOCKET NO. RF-2006-7155-S |
PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies promulgated under the Act (“Regulations”);
WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36b-26(a) of the 2006 Supplement to the General Statutes into the alleged activities of Dever, to determine whether Dever had violated, was violating or was about to violate any provision of the Act or Regulations (“Investigation”);
WHEREAS, as a result of the Investigation, the Division alleges that, from at least June 30, 2004 to May 24, 2005, Dever was registered in Connecticut as an agent of Independent Securities Investors Corporation (“Independent”), a corporation whose principal place of business was in Chipley, Florida;
WHEREAS, as a result of the Investigation, the Division further alleges that, in violation of Section 36b-16 of the Act, Dever effected, in the aggregate, at least six offers and sales of Bio-Solutions Manufacturing and Stake Technology securities to one or more Connecticut customers and that such securities were never registered in Connecticut nor were they exempt from registration under Section 36b-21 of the Act, nor were they covered securities;
WHEREAS, as a result of the Investigation, the Division further alleges that Dever effected at least three unauthorized transactions on behalf of two Connecticut customers, which transactions constitute dishonest and unethical practices in the securities business within the meaning of subdivisions (5) and (6) of subsection (a) of Section 36b-31-15a of the Regulations and Section 36b-4(b) of the Act;
WHEREAS, as a result of the Investigation, the Division further alleges that Dever participated in the offer and sale of a security in the form of a promissory note issued by Charter One Capital Holding Inc., to a Connecticut customer without giving written notice to Independent and that such transaction constitutes a private transaction in violation of Section 36b-31-6e of the Regulations;
WHEREAS, as a result of the Investigation, the Division further alleges that Dever withheld material information from the Commissioner;
WHEREAS, on May 4, 2006, the Commissioner, acting pursuant to Sections 36b-15(a) and 36b-27(d) of the 2006 Supplement to the General Statutes, issued a Notice of Intent to Revoke Registration as Agent, Notice of Intent to Fine and Notice of Right to Hearing against Dever (“Notice”), which Notice is incorporated by reference herein;
WHEREAS, the Notice stated that the Commissioner intended to impose a fine against Dever; that a hearing would be held on July 25, 2006, on the matters alleged in the Notice; and that if Dever failed to appear at such hearing, the Commissioner may order that a maximum fine of Three Hundred Thousand Dollars ($300,000) be imposed upon Dever;
WHEREAS, Dever requested a hearing on the matters alleged in the Notice (“Hearing”);
WHEREAS, the Hearing is currently scheduled for August 29, 2006;
WHEREAS, Section 36b-27(f) of the 2006 Supplement to the General Statutes provides, in relevant part, that “[a]ny time after the issuance of . . . [a] notice provided for in . . . subdivision (1) of subsection (d) of this section, the commissioner may accept an agreement by any respondent named in such . . . notice to enter into a written consent order in lieu of an adjudicative hearing”;
WHEREAS, Section 36b-31(a) of the 2006 Supplement to the General Statutes provides, in relevant part, that “[t]he commissioner may from time to time make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-33, inclusive”;
WHEREAS, Dever offered an agreement to resolve the matters alleged in the Notice without a hearing;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes provides, in relevant part, that “[u]nless precluded by law, a contested case may be resolved by . . . consent order”;
WHEREAS, Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provides, in relevant part, that “[p]ursuant to subsection (c) of Section 4-177 of the Connecticut General Statutes, unless precluded by law, any contested case may be resolved by . . . consent order”;
WHEREAS, Dever has submitted documentation to the Commissioner demonstrating economic hardship, such that the Commissioner believes that Dever is financially incapable of paying the maximum fine;
WHEREAS, Dever and the Commissioner now desire to resolve the matters alleged in the Notice;
WHEREAS, Dever agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language in this Consent Order.
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Dever, through his execution of this Consent Order, voluntarily waives the following rights:
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To be afforded an opportunity for a hearing within the meaning of Sections 36b-15(f) and 36b-27(d) of the 2006 Supplement to the General Statutes and Section 4-177(a) of the Connecticut General Statutes;
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To present evidence and argument and to otherwise avail himself of Sections 36b-15(f) and 36b-27(d) of the 2006 Supplement to the General Statutes and Section 4-177c(a) of the Connecticut General Statutes;
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To present his position in a hearing in which he may be represented by counsel;
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To have a written record of the hearing made and a written decision issued by a hearing officer; and
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To seek judicial review of, or otherwise challenge or contest, the matters described herein, including the validity of this Consent Order.
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ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Dever, through his execution of this Consent Order, acknowledges that the Commissioner has made the following allegations, without admitting or denying them:
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The entry of this Consent Order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;
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Dever violated Section 36b-16 of the Act by offering and selling unregistered securities to Connecticut investors;
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Dever engaged in dishonest and unethical practices in the securities business within the meaning of subdivisions (5) and (6) of subsection (a) of Section 36b-31-15a of the Regulations and Section 36b-4(b) of the Act by effecting unauthorized securities transactions;
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Dever violated Section 36b-31-6e of the Regulations by engaging in a private securities transaction without written notice to his employing broker-dealer; and
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Dever withheld material information from the Commissioner.
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WHEREAS, the Commissioner would have the authority to enter findings after granting Dever an opportunity for a hearing;
WHEREAS, Dever acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Dever, through his execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing on him the following sanctions:
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Except as provided in paragraph 2 of this Consent to Entry of Sanctions, commencing on the date this Consent Order is issued by the Commissioner, Dever is permanently barred from applying for registration or acting in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent as such terms are defined in Section 36b-3 of the Act;
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Ten (10) years from the date this Consent Order is issued by the Commissioner, Dever may apply for registration as a broker-dealer, agent, investment adviser or investment adviser agent in Connecticut. At the time Dever chooses to apply for registration under this paragraph, the Commissioner, in the Commissioner’s sole discretion, may enter Dever’s name on the appropriate register, deny Dever’s 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
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No later than the date this Consent Order is issued by the Commissioner, Dever shall remit to the Department of Banking by cashier’s or certified check made payable to “Treasurer, State of Connecticut” the sum of Three Thousand Five Hundred Dollars ($3,500) as an administrative fine.
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AND WHEREAS, Dever specifically assures the Commissioner that none of the violations alleged in the Notice shall occur in the future.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
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The Sanctions set forth above be and are hereby entered; |
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Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Dever 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 Dever and reflected herein are subsequently discovered to be untrue; |
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This Consent Order shall not preclude additional proceedings by the Commissioner against Dever 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
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 20th day of September 2006. ________/s/_________
John P. Burke
Banking Commissioner
CONSENT TO ENTRY OF ORDER
I, Justin Matthew Dever, 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 consent to the issuance of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
________/s/_________
Justin Matthew Dever
State of: Palm Beach
County of: Boca Raton
On this the 11 day of September 2006, before me, _______________, the undersigned officer, personally appeared Justin Matthew Dever, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: March 27, 2007