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MARTINEZ-AYME FINANCIAL ("Respondent") * * * * * * * * * * * * * * * * * |
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NOTICE OF INTENT TO REVOKE AND NOTICE OF RIGHT TO HEARING DOCKET NO. NR-15-8244-S |
I. PRELIMINARY STATEMENT
| 1. | 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. |
| 2. | The Commissioner brings this administrative action to revoke the registration of Respondent as a broker-dealer in Connecticut pursuant to Section 36b-15 of the Act and Section 4-182(c) of the General Statutes of Connecticut. |
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| 3. | Respondent is a corporation whose address last known to the Commissioner is 9495 Sunset Drive, Suite B275, Miami, Florida 33173. |
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| 4. | From September 18, 2003 to December 31, 2013, and from April 8, 2014 to the present, Respondent has been registered as a broker-dealer under the Act. |
| 5. | The Financial Industry Regulatory Authority (“FINRA”) is a self-regulatory organization registered with the Securities and Exchange Commission (“SEC”) pursuant to Section 15A of the Securities Exchange Act of 1934. |
| 6. | On September 19, 2013, Respondent entered into an Acceptance, Waiver and Consent (AWC) with FINRA (Case No. 2013037419101). The AWC resulted in FINRA censuring Respondent and fining Respondent $25,000. The AWC alleged that: (a) between March 1, 2010 and July 31, 2012, Respondent acted as the manager and exclusive placement agent for the distributions of securities that were subject to restricted periods under Rule 101 of SEC Regulation M (“Reg M”) under the Securities Exchange Act of 1934. Respondent failed to provide FINRA with the notice required by FINRA Rule 5190 and placed market maker bid quotations and made purchases of the securities during restricted periods, in violation of FINRA Rules 5190 and 2010 and Rule 101 of Reg M; and (b) in violation of FINRA Rule 3010 Respondent failed to establish, maintain and enforce written supervisory procedures regarding Reg M and FINRA Rule 5190. |
| 7. | On March 9, 2015, Respondent entered into an AWC with FINRA (Case No. 2013035307701). The AWC resulted in FINRA censuring Respondent and fining Respondent $25,000. The AWC alleged that: (a) between September 2012 and October 2013, Respondent conducted a securities business on sixteen days while it was net capital deficient; (b) Respondent maintained inaccurate books and records and failed to file timely notifications pursuant to SEC Rule 17a-11; (c) Respondent filed inaccurate Financial and Operational Combined Uniform Single (“FOCUS”) Reports; (d) Respondent failed to enforce its written supervisory procedures related to financial controls and financial books and records; and (e) Respondent consequently violated Sections 15(c) and 17(a) of the Securities Exchange Act of 1934, SEC Rules 15c3-1,17a-3, 17a-5 and 17a-11; NASD Rule 3010(b); and FINRA Rules 4110, 4511, and 2010. |
| 8. | On June 10, 2015, FINRA expelled Respondent from FINRA membership for failing to pay the fine and/or costs imposed by the March 9, 2015 AWC (Case No. 2013035307701). |
| 9. | On September 14, 2015, FINRA expelled Respondent from FINRA membership for failing to pay the fine and/or costs imposed by the September 19, 2013 AWC (Case No. 2013037419101). |
| 10. | Section 36b-15(a) of the Act provides, in pertinent part, that “[t]he commissioner may, by order . . . revoke any registration . . . if the commissioner finds that (1) the order is in the public interest, and (2) the . . . registrant or, in the case of a broker-dealer . . . any partner, officer, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the broker-dealer . . . (F) is the subject of any of the following sanctions that are currently effective or were imposed within the past ten years . . . (iii) a suspension, expulsion or other sanction issued by a national securities exchange or other self-regulatory organization registered under federal laws administered by the Securities and Exchange Commission . . . if the effect of the sanction has not been stayed or overturned by appeal or otherwise[.]” |
| 11. | On July 2, 2015, the Commissioner, through the Securities and Business Investments Division of the Department of Banking, provided Respondent with written notice pursuant to Section 4-182(c) of the General Statutes of Connecticut that a basis existed under Section 36b-15(a)(2)(F)(iii) of the Act to revoke Respondent’s registration as a broker-dealer in Connecticut. The written notice gave Respondent an opportunity to show compliance with all lawful requirements for the retention of its Connecticut broker-dealer registration. The Commissioner requested a written response from the Respondent by July 22, 2015. To date, Respondent has failed to respond to the July 2, 2015 notice. |
| 12. | On September 24, 2015, Martinez-Ayme Securities electronically filed an application to withdraw its Connecticut broker-dealer registration through the Central Registration Depository. |
| 13. | Section 36b-15(e)(1) of the Act provides, in part, that “[w]ithdrawal from registration as a broker-dealer . . . becomes effective ninety days after receipt of an application to withdraw such registration . . . or within such shorter period of time as the commissioner may determine, unless a . . . revocation or suspension proceeding is pending when the application . . . is filed or a proceeding to . . . revoke, suspend or impose conditions upon the withdrawal is instituted within ninety days after the application . . . is filed. If a proceeding is pending or instituted, withdrawal becomes effective at such time and upon such conditions as the commissioner by order determines. If no proceeding is pending or instituted and withdrawal automatically becomes effective, the commissioner may nevertheless institute a . . . revocation or suspension proceeding under subsection (a) of this section within one year after withdrawal became effective.” |
IV. STATUTORY BASIS FOR REVOCATION
OF REGISTRATION AS A BROKER-DEALER
Respondent Subject to Sanctions by FINRA
| 14. | Paragraphs 1 through 13, inclusive, are incorporated and made a part hereof as if more fully set forth herein. |
| 15. | The September 19, 2013 and March 9, 2015 FINRA sanctions of Respondent, more fully described in paragraphs 6 and 7, and the June 10, 2015 and September 14, 2015 expulsions of Respondent from FINRA, as more fully described in paragraphs 8 and 9, form a basis for the revocation of Respondent’s registration as a broker-dealer in Connecticut pursuant to Section 36b 15(a)(2)(F)(iii) of the Act. |
V. NOTICE OF INTENT TO REVOKE REGISTRATION AS A BROKER-DEALER
AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has reason to believe that grounds exist to revoke Respondent’s registration as a broker-dealer in Connecticut pursuant to Section 36b-15(a)(2)(F)(iii) of the Act;
WHEREAS, Section 36b-15(f) of the Act provides, in pertinent part, that “[n]o order may be entered under this section except as provided in subsection (c) of this section without (1) appropriate prior notice to the . . . registrant . . . (2) opportunity for hearing, and (3) written findings of fact and conclusions of law”;
AND WHEREAS, the Commissioner believes that the issuance of an order revoking Respondent’s registration as a broker-dealer in Connecticut would be in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act.
NOW THEREFORE, notice is hereby given to Respondent that Respondent’s registration as a broker-dealer shall be revoked, subject to Respondent’s right to request a hearing on the allegations set forth above.
THE COMMISSIONER ORDERS THAT, pursuant to Section 36b-15(f) of the Act, Respondent will be afforded an opportunity for a hearing on the allegations set forth above if a written request for a hearing is received by the Department of Banking, Securities and Business Investments Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, within fourteen (14) days following Respondent’s receipt of this Notice. To request a hearing, complete and return the enclosed Appearance and Request for Hearing Form to the above address. If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the General Statutes of Connecticut and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on January 6, 2016, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the General Statutes of Connecticut. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
If Respondent fails to request a hearing within the time period prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted, and the Commissioner shall issue an order revoking Respondent’s registration as a broker-dealer in Connecticut.
| Dated at Hartford, Connecticut, | _____/s/____________ | |
| this 23rd day of November 2015. | Jorge L. Perez | |
| Banking Commissioner |
CERTIFICATION
I hereby certify that on this 24th day of November 2015, I caused to be mailed by certified mail, return receipt requested, the foregoing Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Right to Hearing to Martinez-Ayme Financial Group Incorporated d/b/a Martinez-Ayme Securities, 9495 Sunset Drive, Suite B275, Miami, Florida 33173, certified mail no. 7012 3050 0002 1692 7771.
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William C. Hall III
Paralegal