| * * * * * * * * * * * * * * * * *
JOHN A. PINHEIRO
|
* * * * * * * * * *
*
*
*
*
*
*
* |
ORDER TO CEASE AND DESIST NOTICE OF INTENT TO FINE AND NOTICE OF RIGHT TO HEARING DOCKET NO. CF-18-8250a-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. | Pursuant to Section 36b-26(a) of the Act, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, has conducted an investigation into the activities of John A. Pinheiro (“Pinheiro”) to determine if Pinheiro has violated, is violating or is about to violate provisions of the Act or Regulations (“Investigation”). |
| 3. |
As a result of the Investigation, the Commissioner has reason to believe that Pinheiro has violated certain provisions of the Act. |
| 4. | As a result of the Investigation, the Commissioner has the authority to issue a cease and desist order against Pinheiro pursuant to Section 36b-27(a) of the 2018 Supplement to the General Statutes (“2018 Supplement”). |
| 5. |
As a result of the Investigation, the Commissioner has the authority to impose a fine upon Pinheiro pursuant to Section 36b-27(d) of the 2018 Supplement. |
II. RESPONDENT
| 6. | Pinheiro is an attorney who has been a member of the Connecticut Bar since 1988 (Juris Number 307915). Pinheiro’s address last known to the Commissioner is 3300 Park Avenue, Unit 10, Bridgeport, Connecticut 06604. At all times pertinent hereto, Pinheiro was an appointed receiver and CEO for Latteno Food Corp. (“Latteno”). Currently, Pinheiro no longer holds any position at Latteno. Pinheiro is not and has never been registered in any capacity under the Act. |
III. STATEMENT OF FACTS
| 7. | Between April 24, 2015 and June 1, 2015, Latteno issued at least three separate press releases to the public through two media companies, OTC Markets and Marketwired (“Press Releases”). |
| 8. | To post information for publication through both OTC Markets and Marketwired, an entity must designate an individual as an authorized user who can then act on its behalf. The authorized user obtains a distinct login and password to gain access to each site to submit postings. |
| 9. | On June 29, 2016, pursuant to a subpoena dated September 3, 2015, Pinheiro appeared before the Division and provided on the record testimony concerning an investigation into the activities of Latteno. |
| 10. | During Pinheiro’s on the record testimony, Pinheiro repeatedly denied having submitted the press releases for publication through Marketwired. |
| 11. | Subsequent documentation obtained by the Division shows that: (a) Pinheiro submitted the Press Releases for publication through Marketwired; and (b) beginning on March 31, 2015 through at least the time of the Press Releases, Pinheiro was Latteno’s sole authorized user with access and the ability to post information through OTC Markets. |
IV. STATUTORY BASIS FOR ORDER TO CEASE AND DESIST
AND ORDER IMPOSING FINE
a. Violation of Section 36b-23 of the Act –
Materially False or Misleading Statements by Pinheiro to the Commissioner
| 12. | Paragraphs 1 through 11, inclusive, are incorporated and made a part hereof as if more fully set forth herein. |
| 13. |
Pinheiro’s statement to the Commissioner denying that he submitted multiple press releases for publication on behalf of Latteno, as more fully described in paragraphs 7 through 11, inclusive, constitutes a materially false or misleading statement made during an investigation. Such conduct violated Section 36b-23 of the Act and, as such, supports the entry of an order to cease and desist to be issued against Pinheiro under Section 36b-27(a) of the 2018 Supplement, and for the imposition of a fine upon Pinheiro under Section 36b-27(d) of the 2018 Supplement. |
AND NOTICE OF RIGHT TO HEARING
WHEREAS, as a result of the Investigation, the Commissioner finds that, with respect to the activity described herein, Pinheiro has committed at least one violation of Section 36b-23 of the Act;
WHEREAS, the Commissioner further finds that the issuance of an Order to Cease and Desist and the imposition of a fine upon Pinheiro is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policies and provisions of the Act;
WHEREAS, notice is hereby given to Pinheiro that the Commissioner intends to impose a fine not to exceed one hundred thousand dollars ($100,000) per violation upon Pinheiro;
WHEREAS, the Commissioner ORDERS that JOHN A. PINHEIRO CEASE AND DESIST from directly or indirectly violating the provisions of the Act and Regulations, including without limitation, making false or misleading statements to the Commissioner;
THE COMMISSIONER FURTHER ORDERS THAT, pursuant to Section 36b-27 of the 2018 Supplement, Pinheiro 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 Pinheiro’s receipt of this Order. To request a hearing, complete and return the enclosed Appearance and Request for Hearing Form to the above address. If Pinheiro will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. If a hearing is requested, the hearing will be held on August 7, 2018, 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, Pinheiro 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 Pinheiro does not request a hearing within the time period prescribed or fails to appear at any such hearing, the allegations herein against Pinheiro will be deemed admitted. Accordingly, the Order to Cease and Desist shall remain in effect and become permanent against Pinheiro and the Commissioner may order that the maximum fine be imposed upon Pinheiro.
| Dated at Hartford, Connecticut, | _____/s/____________ | |
| this 5th day of June 2018. | Jorge L. Perez | |
| Banking Commissioner |
CERTIFICATION
I hereby certify that on this 6th day of June 2018, I caused to be mailed by certified mail, return receipt requested, the foregoing Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing to John A. Pinheiro, 3300 Park Avenue, Unit 10, Bridgeport, Connecticut 06604, certified mail no. 7013 3020 0000 4226 6752.
| ___/s/_____ | |
| W. C. Hall | |
| Paralegal |