DOB: Feibus, Terry - FINE-CD

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IN THE MATTER OF:

TERRY LEE FEIBUS
CRD NO. 2923404


    ("Respondent")

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ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING FINE

DOCKET NO. CF-2006-7155-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 2006 Supplement to the General Statutes, 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 6, 2006, the Commissioner, acting pursuant to Sections 36b-27(a) and 36b-27(d) of the 2006 Supplement to the General Statutes, issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Respondent (collectively “Notice”), which is incorporated by reference herein;

WHEREAS, in the Notice the Commissioner ordered that Respondent cease and desist from directly or indirectly violating the provisions of the Act, including without limitation, offering unregistered securities;

WHEREAS, on June 6, 2006, the Notice was sent by registered mail, return receipt requested, to Respondent;

WHEREAS, on November 6, 2006, the Commissioner, acting pursuant to Sections 36b-27(a) and 36b-27(d) of the 2006 Supplement to the General Statutes, issued an Amended and Restated Order to Cease and Desist, Notice of Intent to Fine (“Fine Notice”) and Notice of Right to Hearing against Respondent (collectively “Amended Notice”), which is incorporated by reference herein;

WHEREAS, in the Amended Notice the Commissioner ordered that Respondent cease and desist from directly or indirectly violating the provisions of the Act, including without limitation, offering unregistered securities;

WHEREAS, the Fine Notice stated that the Commissioner intended to impose a fine against Respondent; that a hearing would be held on the matters alleged in the Fine Notice, and that if Respondent failed to appear at the hearing, the Commissioner may order that a maximum fine of One Hundred Thousand Dollars ($100,000) be imposed upon Respondent;

WHEREAS, on November 7, 2006, the Amended Notice was sent by registered mail, return receipt requested, to Respondent;

WHEREAS, the Amended Notice was received by Respondent;

WHEREAS, William Nahas, Jr., was appointed Hearing Officer in this matter;

WHEREAS, the Commissioner alleged in the Amended Notice that Respondent effected 41 sales of securities to Connecticut investors, which securities were not registered in Connecticut under the Act, in violation of Section 36b-16 of the Act, which forms a basis for an order to cease and desist to be issued against Respondent under Section 36b-27(a) of the 2006 Supplement to the General Statutes;

WHEREAS, the Commissioner alleged in the Amended Notice that Respondent effected an aggregate of 82 purchases and 53 sales of securities in the account of at least one customer in Connecticut without being registered as an agent in Connecticut, in violation of Section 36b-6(a) of the 2006 Supplement to the General Statutes, which forms a basis for an order to cease and desist to be issued against Respondent under Section 36b-27(a) of the 2006 Supplement to the General Statutes, and for the imposition of a fine against Respondent under Section 36b-27(d) of the 2006 Supplement to the General Statutes;

WHEREAS, by letter dated February 13, 2007, Hearing Officer Nahas sent Respondent notice that the hearing was rescheduled to March 22, 2007, at 9 a.m., at the Department of Banking;

WHEREAS, Attorney Stacey Serrano Sarlo of the Department of Banking had informed Respondent that the hearing was scheduled to begin on March 22, 2007, at 9 a.m.;

WHEREAS, Section 36b-27(a) of the 2006 Supplement to the General Statutes provides, in relevant part, that “[w]henever it appears to the commissioner after an investigation that any person has violated, is violating or is about to violate any of the provisions of sections 36b-2 to 36b-33, inclusive, or any regulation . . . or order adopted or issued under said sections, or that the further sale or offer to sell securities would constitute a violation of said sections or any such regulation . . . or order . . . the commissioner may, in the commissioner’s discretion, order . . . the person . . . to cease and desist from the violations . . . ”;

WHEREAS, on March 22, 2007, Respondent failed to appear at the hearing;

WHEREAS, Attorney Sarlo represented the Commissioner at the hearing;

WHEREAS, Section 36a-1-31(b) of the Regulations provides, in relevant part, that “[w]hen a party fails to appear at a scheduled hearing, the allegations against the party may be deemed admitted”;

WHEREAS, Section 36b-27(d)(2) of the 2006 Supplement to the General Statutes provides, in relevant part, that “[i]f such person fails to appear at the hearing, the commissioner may, as the facts require, order that a fine . . . be imposed upon such person”;

WHEREAS, the facts as set forth in paragraph 9 through 34, inclusive, of the Amended Notice shall constitute findings of fact, and the statutory and regulatory basis for the imposition of a fine set forth in paragraphs 35 through 38, inclusive, of the Amended Notice shall constitute conclusions of law;

WHEREAS, the Commissioner finds that Respondent has violated Section 36b-16 of the Act and Section 36b-6(a) of the 2006 Supplement to the General Statutes;

WHEREAS, the Commissioner finds that the facts require the issuance of a permanent order to cease and desist against Respondent;

WHEREAS, the Commissioner finds that the facts require the imposition of a fine against Respondent;

WHEREAS, the Commissioner complied with the provisions of Sections 36b-27(a) and 36b-27(d) of the 2006 Supplement to the General Statutes;

WHEREAS, Section 36b-31(a) of the 2006 Supplement to the General Statutes 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 2006 Supplement to the General Statutes 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 the issuance of an order to cease and desist against Respondent and the imposition of a fine 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-33, inclusive, of the Act.


ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36b-27(a) and 36b-27(d) of the 2006 Supplement to the General Statutes, that:

1.
The Order to Cease and Desist that was issued against Respondent Terry Lee Feibus on November 6, 2006, be made permanent;
2.
A fine of One Hundred Thousand Dollars ($100,000) be imposed against Respondent Terry Lee Feibus, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than 21 days from the date this Order is mailed; and
 
3. This Order shall become final when mailed.


Entered at Hartford, Connecticut
this 27th day of April 2007.              ________/s/_________
                                                  Howard F. Pitkin
                                                  Banking Commissioner

This Order was sent by registered mail,
return receipt requested, to Respondent
on April 30th, 2007.

Terry Lee Feibus                            Registered Mail No. RB027865473US
18429 Old Princeton Lane
Boca Raton, FL 33498
 


Administrative Orders and Settlements