DOB: Buchholz, Gregory - Revocation

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IN THE MATTER OF:

GREGORY JAMES BUCHHOLZ
CRD No. 1864780

    ("Respondent")

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ORDER REVOKING
REGISTRATION AS AN AGENT

DOCKET NO. NR-11-7857-S

I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies promulgated under the Act;
 
WHEREAS, 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;
 
WHEREAS, 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 Respondent’s registration as a broker-dealer agent of Raymond James Financial Services, Inc. in Connecticut;
 
WHEREAS, 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));
 
WHEREAS, on December 1, 2010, the request to withdraw Respondent’s registration as a broker-dealer agent of Raymond James Financial Services, Inc. in Connecticut became effective by operation of law;
 
WHEREAS, 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.;
 
WHEREAS, 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 Respondent’s registration as an agent.  The written notice gave Respondent an opportunity to respond to the Division’s 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;
 
WHEREAS, on May 11, 2011, the Commissioner, acting pursuant to Section 36b-15 of the Act and Section 4-182(c) of the General Statutes of Connecticut, issued a Notice of Intent to Revoke Registration as an Agent and Notice of Right to Hearing against Respondent (collectively “Notice”), which Notice is incorporated by reference herein;
 
WHEREAS, the Commissioner alleged in the Notice that Respondent was convicted of a felony, which forms a basis for the revocation of Respondent’s registration as an agent in Connecticut pursuant to Section 36b-15(a)(2)(C) of the Act;
 
WHEREAS, the Notice stated that the Commissioner intended to revoke Respondent’s registration as an agent in Connecticut subject to his right to request a hearing, and that if Respondent failed to request a hearing within 14 days following his receipt of the Notice, the Commissioner shall issue an order revoking his registration as an agent in Connecticut;
 
WHEREAS, on May 12, 2011, the Notice was sent to [sic] by certified mail, return receipt requested, to Respondent;
 
WHEREAS, on May 13, 2011, the Notice was received by Respondent;
 
WHEREAS, Respondent failed to request a hearing within the prescribed time period;
 
WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that:  “When a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies[;]”
 
WHEREAS, Section 36b-15 of the Act provides, in pertinent part, that:  (a) The 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 . . . (e)(1) . . . withdrawal 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 . . . (f)  No 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[;]”
 
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-34, inclusive”;
 
AND 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-34, inclusive.”

II. FINDINGS OF FACT AND CONCLUSIONS OF LAW

1. The Commissioner finds that the facts as set forth in paragraphs 3 through 11, inclusive, of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the General Statutes of Connecticut and Section 36a-1-52 of the Regulations of Connecticut State Agencies; and that the Statutory Basis for Revocation of Registration as an Agent set forth in paragraphs 12 and 13 of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the General Statutes of Connecticut and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2. The Commissioner finds that the facts require the issuance of an order revoking Respondent’s registration as an agent in Connecticut.
3. The Commissioner finds that the Notice was given in compliance with the requirements of Section 36b-15(f) of the Act and Sections 4-177 and 4-182(c) of the General Statutes of Connecticut.
4. The Commissioner finds that the issuance of an order revoking Respondent’s registration as an agent in Connecticut 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-34, inclusive, of the Act.

III. ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections [sic] 36b-15 of the Act, that:

1. The registration of Gregory James Buchholz as an agent in Connecticut is hereby REVOKED; and
2. This Order shall become effective when mailed.



Dated at Hartford, Connecticut,       _______/s/____________
this 27th day of June 2011.      Howard F. Pitkin 
         Banking Commissioner 


This Order was sent by certified
mail, return receipt requested, to
Respondent on June 28, 2011.

Gregory James Buchholz
19 Hat Shop Hill
Bridgewater, CT 06752
Certified Mail No. 7010 1870 0001 3619 4684

Gregory James Buchholz
Register Number 20181-014
USP Canaan, U.S. Penitentiary
3057 Easton Turnpike
Waymart, PA 18472
Certified Mail No. 7010 1870 0001 3619 4691

Raymond James Financial Services, Inc.
880 Carillon Parkway
St. Petersburg, FL 33716
Certified Mail No. 7010 1870 0001 3619 4707



Administrative Orders and Settlements