* * * * * * * * * * * * * * * * * *  IN THE MATTER OF: J. LAWSON & ASSOCIATES, INC. * * * * * * * * * * * * * * * * * *

* * * * * * * * *

ORDER IMPOSING FINE DOCKET NO. CF-10-7399-S

I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the Connecticut General Statutes, 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;

WHEREAS, the Commissioner, through the Securities and Business Investments Division of the Department of Banking (“Department”), conducted an investigation into the activities of J. Lawson & Associates, Inc. (“Respondent”), pursuant to Section 36b-26(a) of the Act, as amended by Public Act 10-141, to determine if Respondent had violated, was violating or was about to violate provisions of the Act or Regulations (“Investigation”);

WHEREAS, on August 23, 2010, based on the Investigation, the Commissioner, acting pursuant to Section 36b-27(a) of the 2010 Supplement to the General Statutes (“2010 Supplement”), as amended by Public Act 10-141, and Section 36b-27(d) of the 2010 Supplement, as amended by Public Act 10-141, issued an Order to Cease and Desist (“Order”), Notice of Intent to Fine and Notice of Right to Hearing against Respondent (collectively “Notice”), which Notice is incorporated by reference herein;

WHEREAS, the Commissioner alleged in the Notice that Respondent transacted business as a broker-dealer in Connecticut absent registration.  Such conduct constitutes a violation of Section 36b-6(a) of the Act, as amended by Public Act 10-141, which forms a basis for an order to cease and desist to be issued against Respondent under Section 36b-27(a) of the of the 2010 Supplement, as amended, and the imposition of a fine against Respondent under Section 36b-27(d) of the 2010 Supplement, as amended;

WHEREAS, the Commissioner alleged in the Notice that the conduct of Respondent constitutes, in connection with the offer, sale or purchase of any security, directly or indirectly, employing a device, scheme or artifice to defraud, making an untrue statement of a material fact or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, or engaging in an act, practice or course of business which operates as a fraud or deceit upon any person.  Such conduct constitutes a violation of Section 36b-4(a) of the 2010 Supplement, which forms a basis for an order to cease and desist to be issued against Respondent under Section 36b-27(a) of the 2010 Supplement, as amended, and the imposition of a fine against Respondent under Section 36b-27(d) of the 2010 Supplement, as amended;

WHEREAS, the Notice stated, inter alia, that the Commissioner intended to impose a fine against Respondent, that Respondent would be afforded an opportunity for a hearing on the allegations set forth in the Notice if a written request for a hearing was received by the Department within fourteen (14) days following Respondent’s receipt of the Notice, and that the Commissioner may order that the maximum fine be imposed upon Respondent if Respondent failed to request a hearing within the prescribed time period or failed to appear at any such hearing;

WHEREAS, on August 24, 2010, the Notice was sent by certified mail, return receipt requested, to Respondent;

WHEREAS, on September 21, 2010, the Notice was served on the Commissioner, and on September 28, 2010, in accordance with 36b-33(h) of the Act, as amended by Public Act 10-141, Notice of Service on the Banking Commissioner dated September 28, 2010 (“Notice of Service”), was sent by registered mail, return receipt requested, to Respondent;

WHEREAS, on October 28, 2010, the Notice of Service was returned to the Department marked “Returned To Sender – Unclaimed”;

WHEREAS, Respondent has failed to request a hearing on the allegations set forth in the Notice within fourteen (14) days of the date of the Notice of Service;

WHEREAS, on November 5, 2010, a Certification was issued rendering the Order permanent as of October 13, 2010, which Certification is incorporated by reference herein;

WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that:

WHEREAS, Section 36b-31(a) of the Act, as amended by Public Act 10-141, provides, in pertinent part, that “[t]he commissioner may from time to time make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-34, inclusive”;

AND WHEREAS, Section 36b-31(b) of the Act, as amended by Public Act 10-141, provides, in pertinent part, 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.”

II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.	The Commissioner finds that the facts as set forth in paragraphs 6 through 17, inclusive, of the Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the General Statutes of Connecticut and Section 36a-1-52 of the Regulations of Connecticut State Agencies, and that the Statutory Basis for Order to Cease and Desist and Order Imposing Fine Against Respondent set forth in paragraphs 18 through 23, inclusive, of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the General Statutes of Connecticut and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.	The Commissioner finds that Respondent committed one violation of Section 36b-6(a) of the Act, as amended, and one violation of Section 36b-4(a) of the 2010 Supplement.
3.	The Commissioner finds that the facts require the imposition of a fine against Respondent.
4.	The Commissioner complied with Section 36b-27 of the 2010 Supplement, as amended, and Section 4-177 of the General Statutes of Connecticut.
5.	The Commissioner finds that the imposition of a fine against Respondent is necessary and appropriate in the public interest and 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, of the Act.

III.  ORDER

Having read the record, I hereby ORDER, pursuant to Section 36b-27(d) of the 2010 Supplement, as amended, that:

Dated at Hartford, Connecticut,		______/s/__________
this 19th day of November 2010.		Howard F. Pitkin
	Banking Commissioner

This Order was sent by certified mail,
return receipt requested, to
Respondent on November 23, 2010.

J. Lawson & Associates, Inc. 
134-25 Franklin Avenue, #303
Flushing, NY 11355
Certified mail no. 7010 0290 0002 7489 7969                              

Administrative Orders and Settlements