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DOUGLAS S. WEISS * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-11-7956-S |
PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (the “Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (the “Act”) and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (the “Regulations”) promulgated under the Act;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking, has conducted an investigation pursuant to Sections 36b-8 and 36b-26 of the Act into the activities of Douglas S. Weiss (“Weiss”), a sole proprietor applicant for investment adviser registration located at 597 Westport Avenue, Unit A420, Norwalk, Connecticut, to determine whether Weiss had violated, was violating or was about to violate any provision of the Act or any Regulation or order under the Act;
WHEREAS, as a result of such investigation, the Division obtained evidence that from at least 2007, Weiss transacted business as an investment adviser absent registration in violation of Section 36b-6(c) of the Act and, in so doing, failed to enter into written investment advisory contracts with clients as required by Section 36b-5(b) of the Act;
WHEREAS, the Commissioner believes that the foregoing evidence would support the imposition of administrative sanctions against Weiss pursuant to Sections 36b-27(a), 36b-27(d) and/or Section 36b-15 of the Act;
WHEREAS, on March 11, [2011], the Division received Weiss’ application to register as an investment adviser under the Act;
WHEREAS, Weiss has no reported disciplinary history;
WHEREAS, an administrative proceeding initiated under Sections 36b-27 or 36b-15 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, Section 36b-31(a) of the Act provides, in part, that: “[t]he commissioner may . . . make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-34, inclusive [of the Act]”;
WHEREAS, Section 36b-31(b) of the Act adds that “[n]o . . . order may be made . . . unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of sections 36b-2 to 36b-34, inclusive”;
WHEREAS, the Commissioner finds that the entry of this Consent Order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;
CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Weiss, 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; |
ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Weiss, through his execution of this Consent Order, acknowledges the following allegations of the Commissioner without admitting or denying them:
| 1. | From at least 2007 to the date of his application for investment adviser registration, Weiss transacted business as an investment adviser absent registration in violation of Section 36b-6(c) of the Act; and |
| 2. | From at least 2007 to the date of his application for investment adviser registration, Weiss failed to enter into written investment advisory contracts with clients as required by Section 36b-5(b) of the Act; |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Weiss an opportunity for a hearing;
AND WHEREAS, Weiss acknowledges the possible consequences of an administrative hearing, and voluntarily agrees to consent to the entry of the sanctions described below;
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Weiss, through his execution of this Consent Order consents to the Commissioner issuing an order imposing on him the following sanctions:
| 1. | Weiss shall refrain from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, either directly or through any person, organization or other device; and |
| 2. | No later than the date this Consent Order is entered by the Commissioner, Weiss shall remit to the department by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” the sum of five thousand one hundred eighty dollars ($5,180), four thousand dollars ($4,000) of which shall constitute an administrative fine, six hundred eighty dollars ($680) of which shall represent reimbursement for past due investment adviser registration fees; and five hundred dollars ($500) of which shall be applied to defray the costs associated with the Division’s investigation of this matter. |
CONSENT ORDER
THE COMMISSIONER THEREFORE ORDERS THAT:
| 1. | The Findings and 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 Weiss based upon a violation of this Consent Order or the matters underlying its entry if the Commissioner determines that compliance is not being observed with the terms hereof or if any representation made by Weiss and reflected in his application for investment adviser registration is subsequently discovered to be untrue; |
| 3. | Contemporaneously with the entry of this Consent Order by the Commissioner, the name “Douglas S. Weiss” shall be entered on the Register of Investment Advisers pursuant to Section 36b-8 of the Act; and |
| 4. | This Consent Order shall become final when issued. |
| So ordered at Hartford, Connecticut | _______/s/_________ | |
| this 9th day of August, 2011. | Howard F. Pitkin | |
| Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Douglas S. Weiss 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 voluntarily consent to the entry of this Consent Order expressly waiving any rights I may have to a hearing on the matters described herein.
| ______/s/______________ |
| Douglas S. Weiss |
On this the 2nd day of August, 2011, before me, the undersigned officer, personally appeared Douglas S. Weiss, 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.
In witness whereof I hereunto set my hand.
_____/s/__________________________________
Notary Public/Commissioner of the Superior Court
Date Commission Expires: Sep. 30, 2015