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WALTER JOHN DUBIEL * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER NO. CO-18-8440-S |
I. PRELIMINARY STATEMENT
1. | In approximately 2014, Respondent and Woodard began working together as agents of ProEquities out of office space Woodard rented at 1031 Farmington Avenue, Farmington, Connecticut; | |
2. | Investor One is a Connecticut investor and was one of Woodard’s active brokerage clients at ProEquities from approximately September 2013 to June 2014; | |
3. | By September 2014, both Respondent and Woodard ceased working at ProEquities and Respondent began working as an agent of First Allied out of the same 1031 Farmington Avenue, Farmington Connecticut location. When Woodard left ProEquities, he was not registered under the Act in any capacity, and through this arrangement, Woodard’s role was to assist Respondent with computer, technological and administrative tasks related to Respondent’s securities business at First Allied. Several of Woodard’s clients, including Investor One, moved their accounts to First Allied and became Respondent’s clients. Investor One was one of Respondent’s clients at First Allied from approximately June 2014 to approximately November 2015. Investor One’s accounts were serviced by a joint representative number belonging to Respondent and another First Allied agent. During testimony, Respondent represented to the Commissioner that he has never met or communicated with Investor One; | |
4. | In approximately January 2015, Respondent, without giving notice to the affected clients, shared his First Allied confidential client account log-in credentials with Woodard. Respondent knew Woodard was not registered in any capacity under the Act, but thought Woodard was affiliated with First Allied in some capacity. The account log-in credentials gave Woodard access to all of Respondent’s client accounts, including Investor One’s account. First Allied policies and procedures prohibited agents from sharing log-in credentials with any other individual; and | |
5. | As a result of Respondent sharing his confidential client account log-in credentials with Woodard, Woodard used the credentials to access Investor One’s advisory account to execute securities transactions in Investor One’s account. These transactions were done without Investor One’s knowledge or consent and despite the fact that Woodard was not registered under the Act. |
WHEREAS, the Commissioner has reason to believe that the foregoing conduct would support the initiation of administrative proceedings seeking the entry of a cease and desist order against Respondent under Section 36b-27(a) of the 2018 Supplement and the imposition of a fine against Respondent under Section 36b-27(d) of the 2018 Supplement;
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Respondent, through his 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 Section 36b-27 of the 2018 Supplement and Section 4-177(a) of the General Statutes of Connecticut; |
2. | To present evidence and argument and to otherwise avail himself of Section 36b-27 of the 2018 Supplement and Section 4-177c(a) of the General Statutes of Connecticut; |
3. | To present his position in a hearing in which he 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, Respondent, through his execution of this Consent Order, acknowledges the following allegations of the Commissioner: (i) Respondent violated Section 36b-5(f) of the Act; and (ii) engaged in dishonest or unethical practices in the securities business within the meaning of Section 36b-15(a)(2)(H) of the Act and Section 36b-31-15b(c) of the Regulations;
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondent an opportunity for a hearing;
AND WHEREAS, Respondent 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, Respondent, through his execution of this Consent Order, consents to the Commissioner’s entry of an order imposing on him the following sanctions:
1. | Respondent, either directly or through any person, organization, entity or other device, shall cease and desist from directly or indirectly violating any provision of the Act and the Regulations, including, without limitation, Section 36b-5(f) of the Act and from engaging in dishonest or unethical business practices within the meaning of Section 36b 15(a)(2)(H) of the Act and Section 36b-31-15b(c) of the Regulations; |
2. | No later than the date this Consent Order is entered by the Commissioner, Respondent shall remit to the Department, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” the sum of ten thousand dollars ($10,000) as an administrative fine; and |
3. | From the date this Consent Order is entered by the Commissioner, Respondent shall be, for a period of seven years, BARRED from directly or indirectly, through any person, organization, entity or other device, (i) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, as such terms are defined in the Act and notwithstanding any definitional exclusion that might otherwise be available under the Act; and (ii) acting in any other capacity which requires a license or registration from the Commissioner. |
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 Respondent 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; |
3. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Respondent based upon: (i) 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; or (ii) evidence indicating that Respondent withheld material information from, or made any material misstatement or omission to, the Commissioner in connection with this matter; |
4. | Respondent shall not take any action or make or permit to be made any public statement, including in regulatory filings or otherwise, denying, directly or indirectly, that the Commissioner had a basis to pursue the allegations set forth in Section III of this Consent Order, or create the impression that this Consent Order is without factual basis; |
5. | Respondent shall not take any position in any proceeding brought by or on behalf of the Commissioner, or to which the Commissioner is a party, that is inconsistent with any part of this Consent Order. However, nothing in this Consent Order affects Respondent’s (i) testimonial obligations; or (ii) right to take any legal or factual position in litigation, arbitration, or other legal proceedings in which the Commissioner is not a party; and |
6. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut | , | _____/s/____________ |
this 12th day of July 2018. | Jorge L. Perez | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Walter John Dubiel, 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 entry of this Consent Order.
_____/s/_______ |
Walter J. Dubiel |
_____/s/__________________________
Notary Public
Date Commission Expires: 07-31-2021