I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672c of the General Statutes of Connecticut, the Connecticut Business Opportunity Investment Act (“Act”);

WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking (“Department”), conducted an investigation pursuant to Section 36b-71(a) of the Act into the activities of Respondents to determine if Respondents have violated, are violating or are about to violate provisions of the Act and/or any rule or order adopted or issued under the Act (“Investigation”);

WHEREAS, Empire Wine & Liquor Superstore CT, LLC (“Empire CT”) is a Connecticut limited liability company located at 47 Trotters Way, Torrington, Connecticut 06790;

WHEREAS, Empire Wine & Liquor superstore, LLC (“Empire NY”) is a New York limited liability company located at 804 Pelham Parkway, Pelham Manor, New York 10803;

WHEREAS, Brandon Belmonte is a member and control person of Empire CT and Empire NY;

WHEREAS, Marc B. Ravage is a member and control person of Empire CT and Empire NY;

WHEREAS, Judith A. Belmonte is a member, agent and/or employee of Empire CT and Empire NY;

WHEREAS, as a result of the Investigation, the Commissioner has reason to believe that Respondents have engaged in conduct, as more fully described herein, that violated certain provisions of the Act, and that would support administrative proceedings against Respondents under Sections 36b-72(a) and 36b-72(b) of the Act;

WHEREAS, Purchaser One, a Connecticut resident, is the President and owner of a two corporations (collectively, “Purchaser Entities”), both of which are located at 8 Lansing Avenue, Trumbull, Connecticut.  The Purchaser Entities were formed in August 2015 and September 2015 to engage in retail liquor sales;

WHEREAS, as a result of the Investigation, the Division obtained evidence that:  (1) in September 2015, Empire NY offered and sold to the first Purchaser Entity products, equipment, supplies or services enabling the first Purchaser Entity to operate a liquor store in White Plains, New York; and (2) in September 2015, Empire CT offered and sold to the second Purchaser Entity products, equipment, supplies or services enabling the second Purchaser Entity to operate liquor stores in Glastonbury, Connecticut and Greenwich, Connecticut.  Purchaser One, on behalf of the Purchaser Entities, paid Respondents $375,000;

WHEREAS, in connection with the offers and sales described above, Empire NY and Empire CT made unsubstantiated claims of earnings potential, and represented to the Purchaser Entities that Respondents would provide training assistance, offer a buyback and “guarantee sales if you follow our lead”;

WHEREAS, the transactions described above constitute the offer and sale of a “business opportunity” as defined in Section 36b-61(2) of the Act.  The business opportunity was not registered under Section 36b-62(a) of the Act;

WHEREAS, on April 11, 2016, the Purchaser Entities filed in the Superior Court of Connecticut an Application for Prejudgment Remedy, Proposed Writ Summons and Complaint against the Respondents, alleging, inter alia, breach of contract and misrepresentation (Docket No. FBT-CV16-5031575-S).  On September 26, 2016, the Purchaser Entities and Respondents jointly filed with the court a Confession of Judgment, whereby Respondents agreed to be jointly and severally liable to the Purchaser Entities for a judgment in the amount of $375,000.  On May 17, 2017, the parties filed with the court an Agreement by Consent, whereby Respondents agreed to pay the Purchaser Entities the outstanding balance on the judgment in full no later than May 1, 2018 (“Court Settlement Agreement”);

WHEREAS, as of March 26, 2018, Respondents have paid the Entities $201,000 pursuant to the Court Settlement Agreement;

WHEREAS, the conduct described herein would support the initiation of administrative proceedings against Respondents under Sections 36b-72(a) and 36b-72(b) of the Act;

WHEREAS, an administrative proceeding initiated under Sections 36b-72(a) and 36b-72(b) of the Act would constitute a “contested case” within the meaning of Section 4-166(4) of the General Statutes of Connecticut;

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 consent order, unless precluded by law;

WHEREAS, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Respondents reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;

WHEREAS, Respondents expressly consent to the Commissioner’s jurisdiction under the Act and to the terms of this Consent Order;

AND WHEREAS, Respondents, through their execution of this Consent Order, specifically assure the Commissioner that none of the violations alleged in this Consent Order shall occur in the future.

II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS

WHEREAS, Respondents, through their execution of this Consent Order, voluntarily waive the following rights:

WHEREAS, Respondents, through their execution of this Consent Order, acknowledge the following allegations of the Commissioner, and agree that sufficient evidence exists from which the Commissioner could find facts to substantiate the issuance of an order to cease and desist and an order imposing a maximum administrative fine of One Hundred Thousand Dollars ($100,000) per violation of the Act and/or any rule or order adopted or issued under the Act:

WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondents an opportunity for a hearing;

AND WHEREAS, Respondents acknowledge the possible consequences of an administrative hearing and voluntarily agree to consent to the entry of the sanctions described below.

IV.  CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Respondents, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing on them the following sanctions:

V.  CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

CONSENT TO ENTRY OF ORDER

Administrative Orders and Settlements