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IN THE MATTER OF: GROSVENOR PARTNERS, LTD., * * * * * * * * * * * * * * * * * |
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CONSENT ORDER DOCKET NO. CF-2010-7661-S |
I. PRELIMINARY STATEMENT
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Respondent, 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 Section 36b-27 of the 2010 Supplement, as amended, and Section 4-177(a) of the General Statutes of Connecticut; |
2. | To present evidence and argument and to otherwise avail itself of Section 36b-27 of the 2010 Supplement, as amended, 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, Respondent, through its execution of this Consent Order, acknowledges the following allegations of the Commissioner, without admitting or denying them, yet admits sufficient evidence exists for the Commissioner to enter an order to cease and desist and an order imposing a maximum administrative fine of Ten Thousand Dollars ($10,000) per violation against it:
1. | 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; |
2. | Respondent offered and sold securities in Connecticut, absent registration, in violation of Section 36b-16 of the Act, as amended; and |
3. | Respondent failed to disclose, inter alia, that all of the Connecticut investor’s funds would be placed with Madoff; the risk of loss of the entire investment; any risk factors related to the investment; any financial information on Respondent or its businesses; and any description as to how the funds would be invested with Madoff. Moreover, Respondent failed to disclose that Avellino had been the subject of prior sanctions by the SEC in the form of the Order; and that Avellino consented to the Order and waived any rights to challenge or appeal the Order. Each of Respondent’s omissions was material to investors and prospective investors in the partnership interests, and constitute violations of Section 36b-4(a) of the 2010 Supplement. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondent an opportunity for a hearing;
WHEREAS, Respondent acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below;
AND WHEREAS, Respondent specifically assures the Commissioner that none of the violations alleged in the Notice or this Consent Order shall occur in the future.
IV. CONSENT TO ENTRY OF SANCTIONSWHEREAS, Respondent, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
1. | For a period of ten (10) years commencing on the date this Consent Order is entered by the Commissioner, Respondent is barred from 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 |
2. | Respondent shall cease and desist from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act; and |
3. | For a period of five (5) years commencing on the date this Consent Order is entered by the Commissioner, Avellino is barred from seeking registration in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, as such terms are defined in the Act. |
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 and Avellino 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; and |
3. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut, | _______/s/____________ | |
this 14th day of February 2011. | Howard F. Pitkin | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Frank J. Avellino, state on behalf of Grosvenor Partners, Ltd., a/k/a Aster Associates, 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 Grosvenor Partners, Ltd., a/k/a Aster Associates; that Grosvenor Partners, Ltd., a/k/a Aster Associates agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Grosvenor Partners, Ltd., a/k/a Aster Associates consents to the issuance of this Consent Order.
Grosvenor Partners, Ltd., | |
a/k/a Aster Associates | |
By: | ______/s/____________ |
Frank J. Avellino | |
General Partner |
State of: New York
On this the 28th day of December 2010, before me, Rosita Ling, the undersigned officer, personally appeared Frank J. Avellino, who acknowledged himself to be the General Partner of Grosvenor Partners, Ltd., a/k/a Aster Associates, a limited partnership, and that he, as such General Partner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited partnership by himself as General Partner.
_______________/s/_______________________
Notary Public/Commissioner of the Superior Court
Date Commission Expires: December 24, 2013
CONSENT TO ENTRY OF ORDER
I, Frank J. Avellino, 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 challenge or contest the validity of this Consent Order.
______/s/_____ |
Frank J. Avellino |
State of: New York
County of: New York
On this the 28th day of December 2010, before me, Rosita Ling, the undersigned officer, personally appeared Frank J. Avellino, 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/Commissioner of the Superior Court
Date Commission Expires: December 24, 2013