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WILBANKS SECURITIES, INC.
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NOTICE OF INTENT TO REVOKE AND NOTICE OF RIGHT TO HEARING DOCKET NO. NRC-2018-8422-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 Respondent to determine if Respondent had violated, is violating or is about to violate provisions of the Act or Regulations (“Investigation”). |
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As a result of the Investigation by the Division, the Commissioner brings this administrative action pursuant to Section 4-182(c) of the General Statutes of Connecticut and subsections (a) and (d) of Section 36b-15 of the Act to revoke and cancel Respondent’s registration as a broker-dealer in Connecticut. |
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| 4. | Respondent is a corporation formed under the laws of the State of Oklahoma on March 1, 1996. Respondent maintains or has maintained its principal office at 4334 Northwest Expressway, Suite 222, Oklahoma City, Oklahoma 73116. Respondent has been registered as a broker-dealer under the Act since September 7, 2005. Respondent’s corporate status with the Oklahoma Secretary of State is currently listed as under suspension for noncompliance with Oklahoma tax requirements. |
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III. STATEMENT OF FACTS | |
| 5. | The Financial Industry Regulatory Authority (“FINRA”) is a self-regulatory organization registered with the Securities and Exchange Commission pursuant to Section 15A of the Securities Exchange Act of 1934. Effective October 6, 2017, Respondent’s membership with FINRA was canceled for failure to pay outstanding fees. |
| 6. | On October 13, 2017, the Respondent’s home state of Oklahoma issued an Order Terminating Registration (ODS File No. 17-074) with respect to Respondent. In that Order, the Oklahoma Department of Securities found that Respondent had ceased transacting business as a broker-dealer and that a basis existed to cancel Respondent’s broker-dealer registration in Oklahoma. |
| 7. | On December 11, 2017, the State of South Carolina issued a Summary Suspension and related Administrative Order to Show Cause (Case No. 20176349) against Respondent. The Administrative Order to Show Cause stated that a basis existed to revoke Respondent’s registration as a broker-dealer because Respondent had been expelled from FINRA membership on October 6, 2017 for failing to pay outstanding fees. The accompanying Summary Suspension provided that, absent a hearing on the matter, the order would become final by operation of law. Central Registration Depository (“CRD”) records indicate that Respondent’s registration as a broker-dealer was revoked in South Carolina on January 16, 2018. |
| 8. | To date, Respondent’s registration as a broker-dealer has been terminated, canceled, suspended or revoked in approximately 32 jurisdictions other than Connecticut. |
| 9. | CRD records indicate that none of Respondent’s direct owners and executive officers is currently registered as an agent of Respondent in any jurisdiction. |
| 10. | Respondent no longer has any broker-dealer agents registered under the Act. |
| 11. | On February 22, 2018, acting pursuant to Section 4-182(c) of the General Statutes of Connecticut, the Division provided Respondent with an opportunity to show compliance with the provisions of the Act and to demonstrate why Respondent’s registration as a broker-dealer should not be suspended or revoked based on the cancellation of Respondent’s FINRA membership. The Division’s February 22, 2018, correspondence requested that Respondent respond in writing by March 15, 2018. |
| 12. | Respondent received the Division’s letter on February 26, 2018. To date, Respondent has not submitted a written response to that letter or requested an extension of time within which to file a written response. |
IV. STATUTORY BASIS FOR REVOCATION
AND CANCELATION OF REGISTRATION AS BROKER-DEALER
a. Cancellation of Membership by FINRA
13.
Paragraphs 1 through 12, inclusive, are incorporated and made a part hereof as if more fully set forth herein.
14.
FINRA’s cancellation of Respondent’s membership, as more fully described in paragraph 5, forms 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.
b. Suspension and Revocation Order Issued by the
Securities Administrator of another State
| 15. | Paragraphs 1 through 14, inclusive, are incorporated and made a part hereof as if more fully set forth herein. |
| 16. | The suspension and revocation orders issued by the State of South Carolina, as more fully described in paragraph 7, form a basis for revoking Respondent’s registration as a broker-dealer in Connecticut pursuant to Section 36b-15(a)(2)(F)(i) of the Act. |
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c. Ceasing to do Business as a Broker-dealer | |
| 17. | Paragraphs 1 through 16, inclusive, are incorporated and made a part hereof as if more fully set forth herein. |
| 18. | Respondent's apparent cessation of business as a broker-dealer, as more fully described in paragraphs 6, 9 and 10, forms a basis for the cancellation of Respondent’s registration as a broker-dealer in Connecticut pursuant to Section 36b-15(d) of the Act. |
V. NOTICE OF INTENT TO REVOKE AND CANCEL REGISTRATION
AS A BROKER-DEALER AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has reason to believe that grounds exist for revoking and canceling Respondent’s registration as a broker-dealer in Connecticut pursuant to Sections 36b-15(a) and 36b-15(d) of the Act;
WHEREAS, the Commissioner believes that the issuance of an order revoking and canceling 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;
AND WHEREAS, Section 36b-15(f) of the Act provides, in pertinent part, that “[n]o order may be entered under this section . . . without (1) appropriate prior notice to the . . . registrant . . . (2) opportunity for hearing, and (3) written findings of fact and conclusions of law.”
NOW THEREFORE, notice is hereby given to Respondent that its registration as a broker-dealer in Connecticut shall be revoked and canceled, subject to its right to request a hearing on the allegations set forth above.
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”. 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, 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 does not request a hearing within the time period prescribed or fails to appear at any such hearing, the allegations herein against the Respondent will be deemed admitted. Accordingly, the Commissioner shall issue an order revoking and canceling Respondent’s registration as a broker-dealer in Connecticut.
| Dated at Hartford, Connecticut, | _____/s/____________ | |
| this 7th day of June 2018. | Jorge L. Perez | |
| Banking Commissioner |
CERTIFICATION
I hereby certify that on this 8th day of June 2018, I caused to be mailed by certified mail, return receipt requested, the foregoing Notice of Intent to Revoke and Cancel Registration as a Broker dealer and Notice of Right to Hearing to Wilbanks Securities, Inc., 4334 Northwest Expressway, Suite 222, Oklahoma City, Oklahoma 73116, certified mail no. 7013 3020 0000 4226 6769.
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W. C. Hall
Paralegal