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PAUL ANTHONY STEFFANY * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-16-8275-S |
I. PRELIMINARY STATEMENT
WHEREAS, Section 36b-15(e)(1) of the Act provides, in part, that:
Withdrawal from registration as a[n] . . . agent . . . or investment adviser agent . . . 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[;] |
WHEREAS, Steffany did not file a written response to the Division’s January 15, 2016 correspondence;
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Steffany, 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-15(f) 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 himself of Sections 36b-15(f) and 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut; |
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. |
III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Steffany, through his execution of this Consent Order, acknowledges and admits the following allegations of the Commissioner which are sufficient for the Commissioner to impose sanctions pursuant to Sections 36b-27 and 36b-15 of the Act:
1. | The sanctions imposed by FINRA against Steffany in Case No. 2014041650301 and more fully described herein provide a basis for suspending, revoking or restricting the securities-related activities that Steffany may perform in this state pursuant to Section 36b-15(a)(2)(F)(iii) of the Act; |
2. | Steffany engaged in fraudulent, dishonest or unethical practices in the securities business within the meaning of Section 36b-15(a)(2)(H) of the Act. Such conduct would support the initiation of proceedings to suspend or revoke Steffany’s registrations and/or to restrict the securities-related activities that Steffany may perform in this state; and |
3. | The conduct described herein violated NASD Rule 2110 and FINRA Rule 2010 which require associated persons to observe high standards of commercial honor and equitable principles of trade. Consequently, such conduct was also proscribed by Section 36b-31-15b of the Regulations and would support the entry of an order to cease and desist and an administrative fine under Section 36b-27 of the Act. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Steffany an opportunity for a hearing;
AND WHEREAS, Steffany acknowledges the possible consequences of an administrative hearing and voluntarily agrees to [consent] to the entry of the sanctions described below.
IV. CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Steffany, through his execution of this Consent Order, consents to the Commissioner’s entry of an order imposing on him the following sanctions:
1. | Steffany shall cease and desist from directly or indirectly violating the provisions of the Act and the Regulations, including without limitation, engaging in fraudulent, dishonest or unethical practices in the securities business; and |
2. | Steffany shall be PERMANENTLY BARRED from (a) transacting business in or from Connecticut as a “broker-dealer”, “agent”, “investment adviser” or “investment adviser agent”, as such terms are defined in Section 36b-3 of the Act and notwithstanding any otherwise applicable exclusion or exemption; (b) directly or indirectly soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut ; (c) directly or indirectly engaging in any activity which would require Steffany to obtain a license or register under Chapters 668 or 669 of the General Statutes of Connecticut “Nondepository Financial Institutions,” and “Regulated Activities,” respectively, and (d) serving as a control person, qualified individual or branch manager for any entity regulated by the Commissioner under Chapter 668 of the General Statutes. |
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 Steffany 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. | After seven years have elapsed from the date the Consent Order is entered, Steffany may request that the Commissioner relieve him from the bar contained in Paragraph 2 of Section IV of this Consent Order by filing a written application with the Commissioner demonstrating why good cause exists for the Commissioner to grant such relief. The Commissioner may, in his/her sole discretion, grant, deny or condition the relief sought pursuant to this paragraph; |
4. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Steffany 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; |
5. | Steffany 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 Consent Order or create the impression that this Consent Order is without factual basis; |
6. | Steffany shall not take any position in any proceeding brought by or on behalf of the Commissioner, or to which the Commissioner is a party, that is inconsistent with any part of this Consent Order. However, nothing in this Consent Order affects Steffany’s testimonial obligations or right to take any legal or factual position in litigation, arbitration, or other legal proceedings in which the Commissioner is not a party; and |
7. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut, | ____/s/_____________ | |
this 13th day of May 2016. | Jorge L. Perez | |
Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Paul Anthony Steffany, 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 that I consent to the entry of this Consent Order.
______/s/___________
Paul Anthony Steffany
On this the 6 day of May 2016, before me, the undersigned officer, personally appeared Paul Anthony Steffany, 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.
____/s/____________________________ |
Notary Public |
Date Commission Expires: July 31, 2020 |