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RAFFERTY CAPITAL * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER NO. CO-15-8208-S |
I. PRELIMINARY STATEMENT
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Rafferty, through its 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-15 and 36b-27 of the Act and Section 4-177(a) of the General Statutes of Connecticut; |
2. | To present evidence and argument and to otherwise avail itself of Sections 36b-15 and 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut; |
3. | To present its position in a hearing in which it 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 or otherwise challenge or contest the validity of this Consent Order. |
III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Rafferty, through its execution of this Consent Order, acknowledges the following allegations of the Commissioner, without admitting or denying them:
1. | From approximately September 2008 until June 19, 2015, Rafferty violated Section 36b-6(b) of the Act by employing multiple unregistered agents; and |
2. | Rafferty failed to establish, enforce and maintain a system for supervising the activities of its agents that was reasonably designed to achieve compliance with applicable securities laws and regulations in violation of Section 36b-31-6f of the Regulations. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Rafferty an opportunity for a hearing;
AND WHEREAS, Rafferty acknowledges the possible consequences of an administrative hearing and voluntarily agrees to the terms of this Consent Order as described below.
IV. CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Rafferty, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
1. | Rafferty, its representatives, agents, employees, affiliates, assigns, and successors in interest 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, either directly or through any person, organization or other device, including without limitation: (a) employing unregistered agents, and (b) failing to establish, enforce and maintain a system for supervising the activities of its agents that is reasonably designed to achieve compliance with applicable securities laws and regulations; |
2. | Rafferty will establish, implement and maintain revised written supervisory procedures and update its supervisory systems as required under Section 36b-31-6f of the Regulations to ensure that all persons who require agent registration are properly registered; and |
3. | No later than the date this Consent Order is entered by the Commissioner, Rafferty shall remit to the Department by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, the sum of sixteen thousand fifty dollars ($16,050), ten thousand seven hundred dollars ($10,700) of which shall constitute an administrative fine and five thousand three hundred fifty dollars ($5,350) of which shall represent reimbursement for past due agent registration fees. |
V. CONSENT ORDER
NOW THEREFORE,
the Commissioner enters the following:1. | The Sanctions set forth above be and are hereby entered; |
2. | Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Rafferty 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; |
3. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Rafferty and/or its affiliates and successors in interest based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act; and |
4. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut, | _____/s/____________ | |
this 31st day of July 2015. | Jorge L. Perez | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Thomas Mulrooney, state on behalf of Rafferty Capital Markets, LLC that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Rafferty Capital Markets, LLC; that Rafferty Capital Markets, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Rafferty Capital Markets, LLC consents to the entry of this Consent Order.
Rafferty Capital Markets, LLC | |
By: | _____/s/_______________________ |
Thomas Mulrooney | |
President and Chief Compliance Officer |
State of: New York
County of: New York
On this the 21 day of July 2015, before me, Thomas Mulrooney [sic], the undersigned officer, personally appeared Thomas Mulrooney, who acknowledged himself to be the President and Chief Compliance Officer of Rafferty Capital Markets, LLC, and that he, as such President and Chief Compliance Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing the name of the limited liability company by himself as President and Chief Compliance Officer.
______/s/___________________________ |
Michelle L. Diaz |
Notary Public |
Date Commission Expires: Sep. 30, 2017 |