DOB: News Bulletin 2280 - November 2, 2007

The Department of Banking News Bulletin 

Bulletin # 2280
Week Ending November 2, 2007

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.



SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Kenneth Von Kohorn Agrees to Entry of Permanent Injunction Following Claims of Unregistered Investment Advisory Activity

On October 15, 2007, the Superior Court for the Judicial District of Hartford entered a Judgment in Accordance With Stipulation in the matter of Pitkin v. Kenneth Von Kohorn.
 
The Motion for Judgment in Accordance With Stipulation filed by the Banking Commissioner had claimed that Kenneth Von Kohorn 1) violated Section 36b-6 of the Connecticut Uniform Securities Act as well as two consent orders entered against Von Kohorn in 1996 and 1998 by transacting business as an investment adviser while unregistered; and 2) sold limited partnership interests in Value Investors, LP without having made the requisite filing under Section 36b-21(e) of the Connecticut Uniform Securities Act.
 
Without admitting or denying the Commissionerís allegations, Von Kohorn stipulated and agreed to the entry of a permanent injunction enjoining him from violating the Connecticut Uniform Securities Act, its regulations and the 1996 and 1998 consent orders.  In addition, Von Kohorn agreed to pay a $35,000 fine and, for five years, to retain a compliance consultant other than himself to ensure that he was abiding by all applicable securities laws and regulations.
 
Order to Cease and Desist and Notice of Intent to Fine Issued
 
On October 23, 2007, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing with respect to Albert Robert Puccerella III a/k/a John Higgins of Staten Island, New York.  The action alleged that the respondent, while associated with Great Eastern Securities, Inc., a Connecticut registered broker-dealer, effected transactions in the securities of American Oil & Gas Inc. and ChipMOS Technologies (Bermuda) Ltd. while not registered as an agent under the Connecticut Uniform Securities Act.  The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist.  A hearing on the Notice of Intent to Fine has been scheduled for December 6, 2007.
 

Order to Cease and Desist and Notice of Intent to Fine Issued
 
On October 23, 2007, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing with respect to Louis John Liberatore, Sr. of Bluepoint, New York.  The action alleged that the respondent, while associated with Great Eastern Securities, Inc., a Connecticut registered broker-dealer, effected transactions in the securities of Galaxy Energy Corp. while not registered as an agent under the Connecticut Uniform Securities Act.  The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist.  A hearing on the Notice of Intent to Fine has been scheduled for December 5, 2007.
 
Order Imposing Fine Issued
 
On October 24, 2007, the Commissioner entered an Order Imposing Fine against Argyle Capital, LLC of 239 Glenville Road, Suite 300, Greenwich, Connecticut and its sole member, Quintin Geoffrey Marshall of Stamford, Connecticut.   The action had been preceded by a June 22, 2007 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-2007-7130-S) alleging that 1) in 2000, the respondents sold unregistered securities of Argyle Capital, LLC in contravention of Section 36b-16 of the Connecticut Uniform Securities Act; and 2) the respondents violated the antifraud provisions in Section 36b-4(a) of the Act by guaranteeing a return on monies invested and failing to disclose investment risks.  Since neither respondent requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent on August 15, 2007.  In fining respondent Quintin Geoffrey Marshall $20,000 and respondent Argyle Capital, LLC an additional $20,000, the Commissioner found that each respondent had violated Sections 36b-16 and 36b-4(a) of the Connecticut Uniform Securities Act.  The respondents did not appear or contest the imposition of the fines.
 
 
       Dated:  Tuesday, November 6, 2007
 
       Howard F. Pitkin
       Banking Commissioner