DOB: Peter R. Mack & Co. Inc. - Stipulation


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IN THE MATTER OF:

PETER R. MACK & CO., INC.
CRD No. 18275

PETER RICHARD MACK
CRD. No. 316060

(Collectively "Respondents")

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   STIPULATION AND
   AGREEMENT

No. ST-16-8266-S

   

WHEREAS, Peter R. Mack & Co., Inc. (“PRM”) is a broker-dealer with its principal office at 191 Post Road West, Westport, Connecticut 06880-4625.  PRM has been registered as a broker-dealer under Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), since January 21, 1992.  Prior to January 2013, the principal office of PRM was located at 515 Madison Avenue, 27th Floor, New York, New York 10022.

WHEREAS, Peter Richard Mack (“Mack”) is the owner, President and Chief Compliance Officer of PRM. Mack has been a registered broker-dealer agent of PRM under the Act since January 21, 1992;

WHEREAS, the Commissioner is charged with the administration of the Act and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;

WHEREAS, in connection with an examination of PRM, the staff of the Securities and Business Investments Division (“Division”) of the Department of Banking (“Department”) ascertained that from at least January 2013 forward, PRM rendered investment advisory services through one or more unregistered investment adviser agents at a time when PRM was not registered as an investment adviser under the Act;

WHEREAS, on January 5, 2016, PRM filed for registration as an investment adviser under the Act after being apprised of the Division’s concerns;

WHEREAS, on January 19, 2016, Mack filed for registration as an investment adviser agent of PRM under the Act after being apprised of the Division’s concerns;

WHEREAS, Section 36b-6(c)(1) of the Act provides, in pertinent part, that “[n]o person shall transact business in this state as an investment adviser unless registered as such by the commissioner as provided in sections 36b-2 to 36b-34, inclusive”;

WHEREAS, Section 36b-(6)(c)(3) of the Act provides, in pertinent part, that “[n]o investment adviser shall engage an investment adviser agent unless such investment adviser agent is registered under sections 36b-2 to 36b-34, inclusive”;

WHEREAS, violations of Sections 36b-6(c)(1) and 36b-6(c)(3) of the Act would support the initiation of administrative proceedings under Sections 36b-15 and 36b-27 of the Act;

WHEREAS, an administrative proceeding initiated under Sections 36b-15 and 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(4) of the General Statutes of Connecticut, as amended by Public Act 15-61;

WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations provide that a contested case may be resolved by stipulation or agreed settlement, unless precluded by law;

WHEREAS, Respondents desire to settle the matter described herein and, without either admitting or denying the Commissioner’s allegations set forth hereinabove, voluntarily enter 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 matter described herein;

WHEREAS, Respondents expressly consent to the Commissioner’s jurisdiction under the Act and to the terms of this Stipulation and Agreement;

WHEREAS, Respondents, through their execution of this Stipulation and Agreement, voluntarily waive any rights they may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;

AND WHEREAS, Respondents specifically assure the Commissioner that none of the violations alleged in this Stipulation and Agreement shall occur in the future.

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

1.
No later than the date this Stipulation and Agreement is entered by the Commissioner, Respondents shall jointly and severally remit to the Department by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” the sum of three thousand eight hundred and seventy dollars ($3,870), three thousand ($3,000) of which shall constitute an administrative fine and eight hundred and seventy dollars ($870) of which represents reimbursement for past due investment adviser and investment adviser agent registration fees;
2.
Respondents, their officers, directors, representatives, agents, employees, affiliates, and successors in interest shall refrain from engaging, directly or indirectly, in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act;
3. Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Respondents 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 of the Stipulation and Agreement; and
4. This Stipulation and Agreement shall become binding when executed by Respondents and the Commissioner.

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


Dated at Hartford, Connecticut,       ____/s/__________________ 
this 3rd day of February 2016.   Jorge L. Perez
    Banking Commissioner 


I, Peter R. Mack, state on behalf of Peter R. Mack & Co., Inc., 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 Peter R. Mack & Co., Inc.; that Peter R. Mack & Co., Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

    Peter R. Mack & Co., Inc.
     
     
By:    ____/s/________________
  Peter R. Mack
President


State of:  Connecticut

County of:  Fairfield

On this the 26th day of January 2016, before me, the undersigned officer, personally appeared Peter R. Mack, who acknowledged himself to be the President of Peter R. Mack & Co., Inc., a corporation, and that he, as such President, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
 
In witness whereof I hereunto set my hand.


_____/s/__________________________
Notary Public
Date Commission Expires: May 31, 2017


I, Peter Richard Mack, state that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

   
   ______/s/________
  Peter Richard Mack


State of:  Connecticut

County of:  Fairfield


On this the 26th day of January 2016, before me, the undersigned officer, personally appeared Peter Richard Mack, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
 
In witness whereof I hereunto set my hand.


_____/s/__________________________
Notary Public
Date Commission Expires:  May 31, 2017




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