I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;

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 Act into the activities of Overtime Marketing, LLC, Overtime Sports Southeast, LLC, Overtime Sports Southwest, LLC and Kenneth Hansmire (collectively “Respondents”) to determine if they have violated, were violating or were about to violate provisions of the Act or Regulations (“Investigation”);

WHEREAS, as a result of the Investigation, on June 22, 2015, the Commissioner, acting pursuant to Section 36b-27 of the Act, issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (collectively “Notice”) (Docket No. CRF-15-8110-S) against Respondents, which Notice is incorporated by reference herein;

WHEREAS, on July 8, 2015, Respondent Kenneth Hansmire requested a hearing on the matters alleged in the Notice on behalf of the Respondents;

WHEREAS, on July 17, 2015, the Commissioner issued a Notification of Hearing and Designation of Hearing Officer, wherein the Commissioner scheduled the hearing on the matters alleged in the Notice for September 1, 2015 (“Hearing”);

WHEREAS, on August 28, 2015, the designated Hearing Officer granted a continuance of the Hearing to October 20, 2015;

WHEREAS, Section 36b-31(a) of the Act 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-34, inclusive”;

WHEREAS, Section 36b-31(b) of the Act provides, in relevant part, that “[n]o . . . order may be made . . . unless the commissioner finds that the action 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 sections 36b-2 to 36b-34, inclusive”;

WHEREAS, an administrative proceeding initiated under Section 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(4) of the General Statutes of Connecticut;

WHEREAS, Section 36b-27(f) of the Act provides, in relevant part, that “[a]ny time after the issuance of an order or notice provided for in subsection (a) . . . (b) . . . or subdivision (1) of subsection (d) of this section, the commissioner may accept an agreement by any respondent named in such order or notice to enter into a written consent order in lieu of an adjudicative hearing”;

WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;

WHEREAS, Respondents and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings;

WHEREAS, the Commissioner finds that the issuance 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;

WHEREAS, Respondents acknowledge their obligation to pay full restitution to the investors referenced in paragraph 15 of the Notice;

WHEREAS, on August 21, 2015, Respondents filed with the Division a confidential sworn Summary Financial Statement, with related attachments (collectively, the “Financial Documentation”), which Financial Documentation is incorporated by reference herein, indicating that Respondents were currently financially unable to pay the restitutionary amount imposed pursuant to Section 36b-27(b) of the Act and referenced in the Notice;

AND WHEREAS, Respondents specifically assure the Commissioner that none of the violations alleged in the Notice 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 with respect to the Notice:

WHEREAS, Respondents, through their execution of this Consent Order, acknowledge the Commissioner’s allegations that Respondents violated Sections 36b-16 and 36b-4(a) of the Act and Respondents Overtime Marketing, LLC, Overtime Sports Southeast, LLC and Overtime Sports Southwest, LLC each violated Section 36b-6(b) of the Act, and do not admit or deny these allegations, but agree that evidence exists from which the Commissioner could find facts to support the issuance of an order to cease and desist, an order to make restitution, and an order imposing an administrative fine per violation of the Act, or any regulation, rule or order adopted or issued under the Act against each of them[;]

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:

I, Kenneth Hansmire, 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.     

Administrative Orders and Settlements