DOB: Maxim Group LLC Stipulation

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IN THE MATTER OF:

MAXIM GROUP LLC
 
(CRD No. 120708)


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STIPULATION AND
AGREEMENT

No. ST-09-7720-S

 

WHEREAS, the Banking Commissioner (the “Commissioner”) is responsible for administering Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (the “Act”) and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies (the “Regulations”) promulgated under the Act;

WHEREAS, Maxim Group LLC (“Maxim”) of 405 Lexington Avenue, New York, New York has been registered as a broker-dealer under the Act since October 17, 2002;

WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking has conducted an investigation of Maxim under Section 36b-26 of the Act to determine whether Maxim had violated, was violating or was about to violate any provision of the Act or any regulation or order under the Act;

WHEREAS, the Commissioner, as a result of such investigation, alleges that from November 2005 forward, Maxim employed Jared Ross Greenbaum (“Greenbaum”) (CRD number 4487799) as an agent at a time when Greenbaum was not registered as an agent of the firm under Section 36b-6 of the Act;

WHEREAS, Maxim’s employment of an unregistered agent in alleged contravention of Section 36b-6(b) of the Act would support the initiation of administrative proceedings under Sections 36b-15(a)(2)(B) and 36b-27 of the Act;

WHEREAS, on February 19, 2009, Greenbaum applied for registration as an agent of Maxim under the Act;

WHEREAS, Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;

WHEREAS, Maxim desires to settle the matters described herein and voluntarily enters into this Stipulation and Agreement, acknowledging that this Stipulation and Agreement is in lieu of any court action or administrative proceeding adjudicating any issue of fact or law on the matters described herein;

WHEREAS, Maxim, through its execution of this Stipulation and Agreement, voluntarily waives any rights it may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;

NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:

(1) No later than the date this Stipulation and Agreement is executed by the Commissioner, Maxim shall remit to the department by check made payable to “Treasurer, State of Connecticut” the sum of four thousand seven hundred dollars ($4,700), three thousand five hundred dollars ($3,500) of which shall constitute an administrative fine, two hundred dollars ($200) of which shall represent reimbursement for past due agent registration fees and one thousand dollars ($1,000)  of which shall be applied to defray the costs associated with the Division’s investigation of this matter;
(2)
Maxim shall comply with all statutory requirements governing the registration of affected personnel as broker-dealer agents, and shall review, revise and implement such supervisory and compliance procedures as are necessary to ensure such compliance;
(3) Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Maxim based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof; and
(4) This Stipulation and Agreement shall become binding when executed by all parties hereto.


IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.

 

               ________/s/_________
     Howard F. Pitkin
            Banking Commissioner

Dated at Hartford, Connecticut                 
this 19th day of August 2009.                         
 

I, Gerard Thomas McCarthy, state on behalf of Maxim Group LLC, that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Maxim Group LLC and that Maxim Group LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                                                 

       Maxim Group LLC

By
       ________/s/_______________
       Gerard Thomas McCarthy  
       Chief Compliance Officer


On this 17 day of August 2009, personally appeared Gerard Thomas McCarthy, signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Maxim Group LLC, and acknowledged the same to be his free act and deed, before me.



__________/s/____________________
Notary Public
My Commission Expires:  March 27, 2010




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