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HUNJO LLC * * * * * * * * * * * * * * * * * * |
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STIPULATION AND
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WHEREAS, the Banking Commissioner (the “Commissioner”) is responsible for administering Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (the “Act”) and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies (the “Regulations”) promulgated under the Act;
WHEREAS, Hunjo LLC is an investment adviser formed under Delaware law on October 30, 2014. Hunjo LLC has maintained a place of business at 93 Bayberry Lane, Westport, Connecticut 06880 since approximately January 2017. The sole member of the firm is Robert Barry Gutman (CRD No. 2785277);
WHEREAS, Hunjo LLC applied to become registered as an investment adviser under the Act on October 30, 2017. In connection with its application, Hunjo LLC reported that since relocating from New York in January 2017, it had continued to service the advisory accounts of four high net worth individuals and one affiliated hedge fund (Blank Check Capital, LLC) located in Connecticut. Hunjo LLC was not previously registered as an investment adviser in any state or with the Securities and Exchange Commission;
WHEREAS, neither Hunjo LLC nor Gutman has any disciplinary history reported on the CRD/IARD System;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking, conducted a follow-up investigation of Hunjo LLC pursuant to Sections 36b-8 and 36b-26(a) of the Act to determine the extent to which it had violated, was violating or was about to violate provisions of the Act or Regulations;
WHEREAS, as a result of the foregoing investigation, the Commissioner obtained evidence indicating that from approximately January 2017 forward, Hunjo LLC transacted business as an investment adviser in Connecticut while unregistered in contravention of Section 36b-6(c)(1) of the Act, and engaged an unregistered investment adviser agent in violation of Section 36b-6(c)(3) of the Act;
WHEREAS, the Commissioner believes that the conduct described above would support administrative proceedings against Hunjo LLC under Sections 36b-15 and 36b-27 of the Act;
WHEREAS, an administrative proceeding initiated under Sections 36b-15 and 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, Hunjo LLC desires to settle the matters described above, and voluntarily enters into this Stipulation and Agreement;
WHEREAS, Section 4-177(c) of Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;
WHEREAS, the Commissioner and Hunjo LLC acknowledge that this Stipulation and Agreement is in lieu of any court action or administrative proceeding against Hunjo LLC, its members, officers, employees, agents or representatives adjudicating any issue of fact or law on the specific matters described herein;
WHEREAS, Hunjo LLC, through its execution of this Stipulation and Agreement, voluntarily waives any rights it may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;
NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
| 1. |
Hunjo LLC, its representatives, agents, employees, affiliates, assigns and successors in interest shall refrain 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, either directly or through any person, organization or other device, including, without limitation, transacting business as an unregistered investment adviser and engaging unregistered investment adviser agents; |
| 2. |
No later than the date this Stipulation and Agreement is executed by the Commissioner, Hunjo LLC shall remit to the Department, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” or by electronic funds transfer, the sum of two thousand five hundred dollars ($2,500) as an administrative fine; |
| 3. | Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Hunjo LLC based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof; |
| 4. | Nothing in this Stipulation and Agreement shall be construed as limiting the Commissioner's ability to take enforcement action against Hunjo LLC, its representatives, agents, employees, affiliates, assigns and successors in interest based upon evidence of which the Commissioner was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act; |
| 5. | Through its execution of this Stipulation and Agreement, Hunjo LLC agrees that it 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, any allegation referenced in this Stipulation and Agreement or create the impression that this Stipulation and Agreement is without factual basis; and |
| 6. | This Stipulation and Agreement shall become binding when executed by Hunjo LLC and the Commissioner. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.
| Dated at Hartford, Connecticut | ____/s/_____________ | |
| this 27th day of April 2018. | Jorge L. Perez | |
| Banking Commissioner |
I, Robert Barry Gutman, state on behalf of Hunjo LLC, that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Hunjo LLC; and that Hunjo LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
| Hunjo LLC | ||
| By | _____/s/______________ | |
| Robert Barry Gutman | ||
| Managing Member and | ||
| Chief Compliance Officer |
On this 24th day of April 2018, personally appeared Robert Barry Gutman, signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Hunjo LLC and acknowledged the same to be his free act and deed, before me.
_____/s/_______________________
Notary Public
My Commission Expires: 5/31/2020