|* * * * * * * * * * * * * * * * * * *
IN THE MATTER OF:
V. W. EIMICKE ASSOCIATES, INC.
a/k/a THE VWE GROUP, INC.
* * * * * * * * * * * * * * * * * * *
DOCKET NO. CF-2006-7085-S
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, et seq. of the Regulations of Connecticut State Agencies promulgated under the Act (“Regulations”);
WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, conducted an investigation, pursuant to Section 36b-26(a) of the Act, into the activities of Respondent, to determine whether Respondent had violated, was violating or was about to violate any provisions of the Act or Regulations;
WHEREAS, on June 28, 2006, the Commissioner, acting pursuant to Section 36b-27(a) of the 2006 Supplement to the General Statutes (“Supplement”) and Section 36b-27(d) of the Act, issued an Order to Cease and Desist, Notice of Intent to Fine (“Fine Notice”) and Notice of Right to Hearing against Respondent (collectively “Notice”), which Notice is incorporated by reference herein;
WHEREAS, the Fine Notice stated that the Commissioner intended to impose a fine against Respondent, that a hearing would be held on August 15, 2006 on the matters alleged in the Fine Notice, and that if the Respondent failed to appear at the hearing, the Commissioner may order a maximum fine of Ten Thousand Dollars ($10,000) on Respondent;
WHEREAS, on June 28, 2006, the Notice was sent by registered mail, return receipt requested to Respondent;
WHEREAS, the Notice sent to Respondent was received by Respondent on July 5, 2006;
WHEREAS, on August 15, 2006, Respondent failed to appear at the Hearing;
WHEREAS, in the Notice the Commissioner alleged that from at least January 1998 to October 2001, Respondent was an issuer of securities in the form of notes (“Eimicke Securities”);
WHEREAS, in the Notice the Commissioner alleged that on several occasions between January 1998 and October 2001, Respondent offered and sold Eimicke Securities to at least one Connecticut investor;
WHEREAS, in the Notice the Commissioner alleged that the Eimicke Securities that were offered and sold by Respondent were not registered in Connecticut under Section 36b-16 of the Act, nor were they exempt from registration under Section 36b-21 of the Act, nor were they covered securities;
WHEREAS, in the Notice the Commissioner alleged that on June 1, 2004, Respondent filed for bankruptcy in the Southern District of New York pursuant to Chapter 11 of the United States Bankruptcy Code;
WHEREAS, the Respondent is currently in Chapter 11 Bankruptcy proceedings in the Southern District of New York;
WHEREAS, on July 20, 2006, the Order to Cease and Desist issued against Respondent became permanent;
WHEREAS, Section 36b-15(f) of the Supplement provides, in pertinent part, that “[n]o order may be entered under this section except as provided in subsection (c) of this section without (1) appropriate prior notice to the applicant or registrant . . . , (2) opportunity for hearing, and (3) written findings of fact and conclusions of law”;
WHEREAS, the facts as set forth in paragraphs 7 through 10, inclusive, of the Notice shall constitute findings of fact, and the statutory and regulatory basis for the imposition of a fine set forth in paragraphs 11 and 12 of the Notice shall constitute conclusions of law;
WHEREAS, the Commissioner has complied with the requirements of Section 36b-15(f) of the Supplement;
WHEREAS, Section 36b-31(a) of the Supplement 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-33, inclusive”;
WHEREAS, Section 36b-31(b) of the Supplement 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-33, inclusive”;
AND WHEREAS, the Commissioner finds that this order is necessary, appropriate in the public interest, for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of Sections 36b-2 to 36b-33, inclusive, of the Act, as amended.
Having read the record, I HEREBY ORDER, pursuant to Section 36b-27(d)(2) of the 2006 Supplement to the General Statutes, that:
No fine be imposed on Respondent; and
This Order shall become final when mailed.
Dated at Hartford, Connecticut
this 26th day of September 2006. ________/s/_________
John P. Burke
This Order was mailed by registered mail,
return receipt requested, to the Respondent
on September 29, 2006.
V. W. Eimicke Associates, Inc. Registered Mail No. RB 027 865 575 US
a/k/a The VWE Group, Inc.
35 East Grassy Sprain Road
Yonkers, NY 10710
Administrative Orders and Settlements