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JESSE JOHN HINKLEY ("Hinkley") * * * * * * * * * * * * * |
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CONSENT ORDER DOCKET NO. CF-2008-7426-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 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies promulgated under the Act (“Regulations”);
WHEREAS, the Commissioner, through the Securities and Business Investments Division of the Department of Banking, conducted an investigation pursuant to Section 36b-26(a) of the Act into the activities of Hinkley to determine whether he had violated, was violating or was about to violate any provisions of the Act or Regulations (“Investigation”);
WHEREAS, as a result of the Investigation, on December 1, 2008, the Commissioner, acting pursuant to Sections 36b-27(a) and 36b-27(d) of the 2008 Supplement to the General Statutes, issued an Order to Cease and Desist (“Order”), Notice of Intent to Fine (“Fine Notice”) and Notice of Right to Hearing against Hinkley (collectively “Notice”), which notice is incorporated by reference herein;
WHEREAS, the Notice alleged that during the period from November 8, 2006 to July 16, 2007, Hinkley transacted business as an agent of New Castle Financial Services LLC (CRD No. 102380) (“New Castle”) absent registration, in violation of Section 36b-6(a) of the Act;
WHEREAS, the Notice further alleged that during the period from November 8, 2006 to July 16, 2007, while transacting business as an agent of New Castle, Hinkley violated Section 36b-4(a) of the Act by, inter alia, utilizing scripted sales presentations which contained false and misleading statements of material fact;
WHEREAS, Section 36b-27(a) of the Act authorizes the Commissioner to order any person who has violated, is violating or is about to violate any provision of the Act or any regulation, rule or order adopted or issued under the Act to cease and desist from such violation;
WHEREAS, Section 36b-27(d) of the Act authorizes the Commissioner to impose a fine of up to $100,000 per violation against any person who has violated any provision of the Act or any regulation, rule or order adopted or issued under the Act;
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-33, 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-33, 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(2) of the Connecticut General Statutes;
WHEREAS, Section 36b-27(f) of the Act 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 4-177(c) of the Connecticut General Statutes 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, Hinkley and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings and agree to the language in this Consent Order;
WHEREAS, Hinkley 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, Hinkley, 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 Sections 36b-27(a) and 36b-27(d)(2) of the Act and Section 4-177(a) of the Connecticut General Statutes; |
| 2. |
To present evidence and argument and to otherwise avail himself of Sections 36b-27(a) and 36b-27(d)(2) of the Act and Section 4-177c(a) of the Connecticut General Statutes; |
| 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. |
ACKNOWLEDGEMENT OF THE COMMISSIONER’S ALLEGATIONS
WHEREAS, Hinkley, through his execution of this Consent Order, acknowledges the following allegations of the Commissioner, without admitting or denying them:
| 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. |
During the period from November 8, 2006 to July 16, 2007, Hinkley violated Section 36b-6(a) of the Act by transacting business as an agent of New Castle absent registration under the Act; and |
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During the period from November 8, 2006 to July 16, 2007, while transacting business as an agent of New Castle, Hinkley violated Section 36b-4(a) of the Act by, inter alia, utilizing scripted sales presentations which contained false and misleading statements of material fact. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Hinkley an opportunity for a hearing;
WHEREAS, Hinkley 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, Hinkley, 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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For a period of ten (10) years commencing on the date this Consent Order is issued by the Commissioner, Hinkley is barred from acting in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, as such terms are defined in the Act; |
| 2. |
Hinkley shall cease and desist from engaging in conduct constituting or which would constitute a violation of the Act or any regulation, rule or order adopted or issued under the Act; and |
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No later than the date this Consent Order is issued by the Commissioner, Hinkley shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Five Hundred Dollars ($2,500) as an administrative fine. |
AND WHEREAS, Hinkley 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 Hinkley 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 Hinkley and reflected herein are subsequently discovered to be untrue; and |
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This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut,
this 24th day of June 2009. ________/s/_________
Howard F. Pitkin
Banking Commissioner
CONSENT TO ENTRY OF ORDER
I, Jesse John Hinkley, 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 I consent to the issuance of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
_______/s/_______
Jesse John Hinkley
State of: Connecticut
County of: Fairfield
On this the 11 day of June 2009, before me, Jennifer Vieira, the undersigned officer, personally appeared Jesse John Hinkley, 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: Oct 31, 2012