DOB: Commonwealth Exploration-Lofton-Conde-Modif FINE

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IN THE MATTER OF:

COMMONWEALTH EXPLORATION
CORPORATION
("Commonwealth")

DEREK M. LOFTON

CARLOS E. CONDE
("Conde")

    (Collectively "Respondents")

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MODIFICATION TO
ORDER IMPOSING FINE

DOCKET NO. CF-2008-7560-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 Respondents, pursuant to Section 36b-26(a) of the Act, to determine if Respondents had violated, were violating or were about to violate provisions of the Act or Regulations;

WHEREAS, on December 3, 2009, after notice and a hearing, the Commissioner issued an Order Imposing Fine (“Order”) in the Matter of Commonwealth Exploration Corporation, Derek M. Lofton and Carlos E. Conde, which Order is incorporated by reference herein;

WHEREAS, in the Order the Commissioner found that Commonwealth had committed three (3) separate violations of Sections 36b-16, 36b-4(a) and 36b-6(b) of the Act;

WHEREAS, in the Order the Commissioner found that Conde had committed three (3) separate violations of Sections 36b-16, 36b-4(a) and 36b-6(b) of the Act;

WHEREAS, in the Order the Commissioner imposed a fine of Nine Hundred Thousand Dollars ($900,000) on Commonwealth and found that the facts did not require the imposition of a fine upon Conde;

WHEREAS, on December 18, 2009, pursuant to Section 36a-1-53 of the Regulations of Connecticut State Agencies, Attorney Paul A. Bobruff, Prosecuting Attorney, filed on behalf of the Department a Petition for Reconsideration of the Order claiming that the Order contained an error of fact and law with respect to Conde that should be reconsidered and corrected and that, pursuant to law, a fine should be imposed upon Conde in the amount of Seven Hundred Thousand Dollars ($700,000) for three (3) violations of Section 36b-16 of the Act, three (3) violations of Section 36b-4(a) of the Act and one (1) violation of Section 36b-6(b) of the Act.  Section 36a-1-53 of the Regulations of Connecticut State Agencies provides that “[a] party or the department may file a petition for reconsideration of a final decision and the commissioner may reconsider, reverse, modify or correct a final decision in accordance with section 4-181a of the Connecticut General Statutes”;

WHEREAS, by letter dated January 12, 2010, the Commissioner, acting pursuant to Section 4-181a(a)(1) of the Connecticut General Statutes, indicated that he would reconsider the Order;

WHEREAS, the Commissioner finds upon reconsideration that Conde committed three (3) violations of Section 36b-16 of the Act, three violations (3) of Section 36b-4(a) of the Act and one (1) violation of Section 36b-6(b) of the Act;

WHEREAS, the Commissioner upon reconsideration does not find that the facts would require the imposition of the maximum fine sought [to] be imposed upon Conde for his violations of Sections 36b-16, 36b-4(a) and 36b-6(b) of the Act;

WHEREAS, Section 36b-31(a) of the Act, provides, in relevant 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 relevant part, that “[n]o . . . order may be made, amended or rescinded 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 action 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 reconsidered the record pursuant to Section 4-181a(a) of the Connecticut General Statutes, I hereby ORDER, pursuant to Section 36b-27(d) of the Act, that:
 
1.  A fine of Eighty-five Thousand Dollars ($85,000) is imposed against Carlos E. Conde, to be remitted to the Department of Banking by certified check, made payable to “Treasurer, State of Connecticut”, no later than 30 days from the entry of this Order.
    
2.  This Modification to Order Imposing Fine shall become effective when mailed.


Dated at Hartford, Connecticut        ______/s/__________ 
this 24th day of February 2010.      Howard F. Pitkin 
      Banking Commissioner 


This Modification to Order Imposing Fine
was sent by registered mail, return receipt
requested, to Respondent Conde
on February 25, 2010.

Carlos E. Conde 
1231 Adams Street
Franklin, TN 37064-3605
Registered Mail No. RB028036950US

Carlos E. Conde  
1305 Perimeter Lofts Circle
Atlanta, GA 30346-1716
Registered Mail No. RB028036963US


Administrative Orders and Settlements