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SYNDICATED CAPITAL, INC. * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-14-7988B-S |
PRELIMINARY STATEMENT
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Syndicated, through its execution of this Consent Order, voluntarily waives the following rights:
1. | To be afforded an opportunity for a hearing within the meaning of Sections 36b-15(f) and 36b-27(d)(2) of the Act, and Section 4-177(a) of the Connecticut General Statutes; |
2. | To present evidence and argument and to otherwise avail itself of Sections 36b-15(f) and 36b-27(d)(2) of the Act, and Section 4-177c(a) of the Connecticut General Statutes; |
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 of, or otherwise challenge or contest, the matters described herein, including the validity of this Consent Order. |
ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Syndicated, through its execution of this Consent Order, without admitting or denying any of the allegations or findings herein and solely for the purpose of obviating the need for formal administrative proceedings on the matters described herein, acknowledges the following allegations of the Commissioner:
In contravention of Section 36b-31-6f of the Regulations, and based upon the activities of Stephen Burton Blankenship and/or Deer Hill Financial Group, LLC, Syndicated failed to establish, enforce and maintain a system for supervising the activities of its agents and its Connecticut office operations reasonably designed to achieve compliance with applicable securities laws. Such conduct, if proven, would constitute a basis for an order suspending or revoking Syndicated's registration as a broker-dealer in Connecticut pursuant to Sections 36b-15(a)(2)(B) and 36b-15(a)(2)(K) of the Act and an order imposing a fine pursuant to Section 36b-27(d) of the Act; |
WHEREAS, if the foregoing allegations were proven, the Commissioner would have the authority to enter findings after granting Syndicated an opportunity for a hearing;
WHEREAS, Syndicated acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below;
WHEREAS, through its execution of this Consent Order, Syndicated represents to, and specifically assures the Commissioner that none of the violations alleged herein shall occur in the future;
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Syndicated, through its execution of this Consent Order, consents to the Commissioner's entry of a Consent Order imposing on it the following sanctions:
1. | No later than the date this Consent Order is entered by the Commissioner, Syndicated shall pay via check payable to "Treasurer, State of Connecticut" an administrative penalty of ten thousand dollars ($10,000); and |
2. | Syndicated, its officers, representatives, agents, employees, affiliates, and successors in interest shall refrain from engaging, directly or indirectly, in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, including failing to establish, enforce and maintain a system for supervising the activities of its agents and its Connecticut office operations reasonably designed to achieve compliance with applicable securities laws. |
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 Syndicated based upon its 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; if any representations made herein by Syndicated are subsequently discovered to be untrue; or if Syndicated fails to make payment to any Affected Investor in accordance with this Consent Order; |
3. | Syndicated shall not take any action or make or permit to be made any public statement denying, directly or indirectly, any finding in this Consent Order or creating the impression that this Consent Order is without factual basis. Nothing in this paragraph affects Syndicated's (i) testimonial obligations, or (ii) right to take legal or factual positions in defense or prosecution of litigation of other legal proceedings to which the Department is not a party; and |
4. | This Consent Order shall become final when entered. |
So ordered at Hartford, Connecticut | _______/s/_________ | |
this 14th day of July, 2014. | Howard F. Pitkin | |
Banking Commissioner |
I, Faith Lee, state on behalf of Syndicated Capital, Inc. 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 Syndicated Capital, Inc.; that Syndicated Capital, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Syndicated Capital, Inc. voluntarily consents to the entry of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
Syndicated Capital, Inc. | |
By | ___/s/______________ |
Faith Lee | |
President |
[California Acknowledgment]
____/s/_________________________ |
Notary Public |
My Commission Expires Jan. 31, 2017 |