DOB: Buchholz, Gregory - NOIR Agent

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IN THE MATTER OF:

GREGORY JAMES BUCHHOLZ 

CRD No. 1864780 

   ("Respondent")




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NOTICE OF INTENT
TO REVOKE REGISTRATION
AS AN AGENT

AND

NOTICE OF RIGHT TO HEARING

DOCKET NO. NR-11-7857-S

I. PRELIMINARY STATEMENT

1. The Banking Commissioner (ďCommissionerĒ) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (ďActĒ), and the regulations promulgated thereunder (Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies).
2. The Commissioner brings this administrative action to revoke Respondentís registration as an agent in Connecticut pursuant to Section 36b-15 of the Act and in accordance with Sections 46a-80 and 4-182(c) of the General Statutes of Connecticut.

II.  RESPONDENT

3. Respondent is an individual whose addresses last known to the Commissioner are 19 Hat Shop Hill, Bridgewater, Connecticut 06752; and USP Canaan, U.S. Penitentiary, 3057 Easton Turnpike, Waymart, Pennsylvania 18472.

III.  STATEMENT OF FACTS

4. From February 5, 1999 to the present, Respondent has been registered in Connecticut under the Act as a broker-dealer agent of Raymond James Financial Services, Inc. (CRD No. 6694), a broker-dealer registered in Connecticut under the Act.
5. On September 1, 2010, Raymond James Financial Services, Inc. filed with the Commissioner a Form U-5, Uniform Termination Notice for Securities Industry Registration to terminate Respondentís registration as a broker-dealer agent of Raymond James Financial Services, Inc. in Connecticut.
6. Section 36b-15(e)(1) of the Act provides, in pertinent part, that ď[w]ithdrawal from registration as . . . [an] agent . . . becomes effective ninety days after receipt of an application to withdraw such registration . . . unless a . . . revocation . . . proceeding is pending when the application . . . is filed or a proceeding to . . . revoke, suspend or impose conditions upon the withdrawal is instituted within ninety days after the application . . . is filed.  If a proceeding is pending or instituted, withdrawal becomes effective at such time and upon such conditions as the commissioner by order determines.  If no proceeding is pending or instituted and withdrawal automatically becomes effective, the commissioner may nevertheless institute a . . . revocation . . . proceeding under subsection (a) of this section within one year after withdrawal became effective.Ē
7. On November 12, 2010, Respondent pled guilty to a single-count information for felony wire fraud in violation of Title 18 of the United States Code, Section 1343, before the United States District Court for the District of Connecticut (United States of America v. Gregory Buchholz, Case No. 3:10-CR-229 (JCH)).
8. Section 36b-15(a) of the Act provides, in pertinent part, that ď[t]he commissioner may, by order . . . revoke any registration . . . if the commissioner finds that (1) the order is in the public interest, and (2) the . . . registrant . . . (C) has been convicted, within the past ten years, of any misdemeanor involving a security, any aspect of a business involving securities, commodities, investments, franchises, business opportunities, insurance, banking or finance, or any felony, provided any . . . revocation of such registration shall be in accordance with the provisions of section 46a 80 [sic]Ē.
9. On December 1, 2010, the request to withdraw Respondentís registration as a broker-dealer agent of Raymond James Financial Services, Inc. in Connecticut became effective by operation of law.
10. On January 31, 2011, Respondent was sentenced to forty-eight months of imprisonment, followed by three years of supervised release, and was ordered to pay $1,703,317.97 in restitution to Raymond James Financial Services, Inc.
11. On March 4, 2011, the Commissioner, through the Securities and Business Investments Division of the Department of Banking, provided Respondent with written notice that a basis existed under Section 36b-15(a)(2)(C) of the Act to revoke Respondentís registration as an agent.  The written notice gave Respondent an opportunity to respond to the Divisionís position and to provide evidence of rehabilitation under Section 46a-80(c) of the General Statutes of Connecticut.  The Commissioner requested a written response from the Respondent by March 30, 2011.  To date, Respondent has failed to respond to the March 4, 2011 notice.

IV.  STATUTORY BASIS FOR REVOCATION OF REGISTRATION AS AN AGENT

Felony Conviction Within the Past Ten Years

12. Paragraphs 1 through 11, inclusive, are incorporated and made a part hereof as if more fully set forth herein.
13.

Respondentís conviction of a felony, as more fully described in paragraphs 7 and 10, forms a basis for the revocation of Respondentís registration as an agent in Connecticut pursuant to Section 36b-15(a)(2)(C) of the Act.

 
V.  NOTICE OF INTENT TO REVOKE REGISTRATION AS AN AGENT AND
NOTICE OF RIGHT TO HEARING

WHEREAS, the Commissioner has reason to believe that there are grounds to revoke Respondentís registration as an agent in Connecticut pursuant to Section 36b-15(a)(2)(C) of the Act;

WHEREAS, the Commissioner believes that the issuance of an order revoking Respondentís registration as an agent in Connecticut would be in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act;

AND WHEREAS, Section 36b-15(f) of the Act provides, in pertinent part, that ď[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 . . . registrant and to the employer or prospective employer if such . . . registrant is an agent . . . (2) opportunity for hearing, and (3) written findings of fact and conclusions of law.Ē

NOW THEREFORE, notice is hereby given to Respondent that Respondentís registration as an agent shall be revoked, subject to Respondentís right to request a hearing on the allegations set forth above.

A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Securities and Business Investments Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, within fourteen (14) days following Respondentís receipt of this Notice.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as ďpro seĒ.  Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the General Statutes of Connecticut and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on June 29, 2011 at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

The hearing will be held in accordance with the provisions of Chapter 54 of the General Statutes of Connecticut.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.

The Commissioner shall issue an order revoking Respondentís registration as an agent in Connecticut if Respondent fails to request a hearing within the prescribed time period or fails to appear at any such hearing. 

Dated at Hartford, Connecticut,          _______/s/_________
this 11th day of May 2011.    Howard F. Pitkin 
    Banking Commissioner



CERTIFICATION

I hereby certify that on this 12th day of May 2011, the foregoing Notice of Intent to Revoke Registration as an Agent and Notice of Right to Hearing was sent by certified mail, return receipt requested, to Gregory James Buchholz, 19 Hat Shop Hill, Bridgewater, Connecticut 06752, certified mail no. 7010 1870 0001 3618 8713; Gregory James Buchholz, Register Number 20181-014, USP Canaan, U.S. Penitentiary, 3057 Easton Turnpike, Waymart, Pennsylvania 18472, certified mail no. 7010 1870 0001 3618 8720; and Raymond James Financial Services, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, certified mail no. 7010 1870 0001 3618 8737.

                                                    ________/s/_________
                                                    Jesse B. Silverman
                                                    Prosecuting Attorney
 


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