DOB: Great Eastern - FINE

* * * * * * * * * * * * * * * * * * * 

IN THE MATTER OF:

GREAT EASTERN SECURITIES, INC.
CRD NO. 2061

    ("Respondent")

* * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*

ORDER IMPOSING FINE

DOCKET NO. RSDF-2007-7309-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 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 Respondent, pursuant to Section 36b-26(a) of the 2006 Supplement to the General Statutes, to determine if Respondent had violated, was violating or was about to violate provisions of the Act or Regulations;

WHEREAS, on January 26, 2007, the Commissioner, acting pursuant to Section 36b-15 of the 2006 Supplement to the General Statutes, Section 4-182(c) of the Connecticut General Statutes and Section 36b-27(d) of the 2006 Supplement to the General Statutes, issued a Notice of Intent to Revoke Registration as Broker-dealer (“Revocation Notice”), Order Summarily Suspending Registration as Broker-dealer, Order Denying Withdrawal of Registration as Broker-dealer, 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 the matters alleged in the Fine Notice on March 27, 2007 (“Fine Hearing”), and that if Respondent failed to appear at the Fine Hearing, the Commissioner may order that a maximum fine of Six Hundred Thousand Dollars ($600,000) (“Fine”) be imposed upon Respondent;
 
WHEREAS, on January 26, 2007, the Notice was sent to by registered mail, return receipt requested, to Respondent;
 
WHEREAS, on January 29, 2007, the Notice was received by Respondent;
 
WHEREAS, the Revocation Notice stated that the Commissioner intended to revoke Respondent’s registration as a broker-dealer in Connecticut subject to its right to request a hearing, and that if Respondent failed to request a hearing within 14 days following its receipt of the Notice, the Commissioner shall issue an order revoking its registration as a broker-dealer in Connecticut;
 
WHEREAS, Respondent failed to Request a hearing on the Revocation Notice within fourteen (14) days following its receipt of such notice;
 
WHEREAS, on March 22, 2007, the Commissioner entered an Order Revoking Registration as Broker-dealer against Respondent (“Order”);
 
WHEREAS, the Commissioner found in the Order, with respect to the activity described therein, that Respondent violated Sections 36b-6(b) and 36b-14(d) of the 2006 Supplement to the General Statutes, Section 36b-16 of the Act and Sections 36b-31-6f(b), 36b-31-14a(a) and 36b-31-14f(b)(3) of the Regulations;
 
WHEREAS, On March 23, 2007, Paul A. Bobruff, was appointed Hearing Officer in this matter;
 
WHEREAS, Attorney Kitt represented the Department at the Fine Hearing;
 
WHEREAS, on March 27, 2007, Respondent failed to appear at the Fine Hearing;
 
WHEREAS, Section 36a-1-31(b) of the Regulations provides, in pertinent 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 pertinent part, that “[i]f such person fails to appear at the hearing, the commissioner may, as the facts require, order that a fine not exceeding one hundred thousand dollars per violation be imposed upon such person”;
 
WHEREAS, the facts as set forth in paragraphs 6 through 23, inclusive, of the Notice shall constitute findings of fact, and the statutory and regulatory basis for the Fine set forth in paragraphs 24 through 33, inclusive, of the Notice shall constitute conclusions of law;
 
WHEREAS, the Commissioner finds that Respondent committed one violation of Section 36b-6(b) of the 2006 Supplement to the General Statutes, one violation of Section 36b-14(d) of the 2006 Supplement to the General Statutes, one violation of Section 36b-16 of the Act, one violation of Section 36b-31-6f(b) of the Regulations, one violation of Section 36b-31-14a(a) of the Regulations and one violation of Section 36b-31-14f(b)(3) of the Regulations;
 
WHEREAS, the Commissioner finds that the facts require the imposition of a fine against Respondent;
 
WHEREAS, the Commissioner complied with the provisions of Section 36b-27(d) of the 2006 Supplement to the General Statutes;
 
WHEREAS, Section 36b-31(a) of the Act 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 Act 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 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 Section 36b-27(d) of the 2006 Supplement to the General Statutes, that:

1. A fine of $600,000 be imposed against Great Eastern Securities, Inc., to be remitted to the Department of Banking by cashier’s or certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than 30 days from the date the Order is mailed; and
2. This Order shall become final when mailed.


                                                           ________/s/_________
Dated at Hartford, Connecticut                  Howard F. Pitkin
This 22nd day of June 2007.                      Banking Commissioner
 

This Order was mailed by registered mail,
return receipt requested, to Respondent
on June 25, 2007.
 
Great Eastern Securities, Inc.      Registered Mail No. RB027866346US
50 Broad Street, Suite 1401
New York, NY 10004

 


Administrative Orders and Settlements