The Department of Banking News Bulletin
Bulletin # 2271
Week Ending August 31, 2007
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Conditioning Effectiveness of Withdrawal of Application
for Registration as a Broker-Dealer Entered
On August 27, 2007, the Commissioner entered a Consent Order conditioning the withdrawal of Pennaluna & Company, Inc.’s broker-dealer application under the Connecticut Uniform Securities Act. The firm, which maintains its principal office at 421 Sherman Avenue, Suite 203, Coeur D’Alene, Idaho, had filed for broker-dealer registration in 2006 and filed to withdraw that application in July 2007. The Consent Order alleged that 1) from at least October, 2001 through August, 2004, the firm had transacted business in Connecticut as a broker-dealer absent registration and had employed two unregistered agents; and 2) the firm’s application was materially incomplete with respect to disclosures concerning the firm’s prior securities activities in Connecticut. The Consent Order precluded the firm and its successors in interest from reapplying for registration as a broker-dealer for three years, and directed the firm to refrain from engaging in violative conduct. In addition, the Consent Order required that the firm remit $7,500 to the department. Of that amount, $5,000 constituted an administrative fine and $2,500 would be applied to defray the agency’s investigative costs. The firm’s withdrawal of its broker-dealer application was made effective on August 27, 2007.
Lakeville Firm Assessed $5,100 Following Claims of Unregistered
Investment Advisory Activity
On August 28, 2007, the Commissioner entered a Consent Order with respect to Kuhns Brothers Capital Management, Inc. of 558 Lime Rock Road, Lakeville, Connecticut. The firm had applied for investment adviser registration under the Connecticut Uniform Securities Act in August 2006. The Securities and Exchange Commission had canceled the firm’s federal registration on August 20, 2004. The Consent Order alleged that from August 2004 forward, the firm transacted business as an investment adviser while unregistered and employed an unregistered investment adviser agent, all in contravention of Section 36b-6(c) of the Act. The Consent Order directed the firm to implement revised supervisory procedures to improve regulatory compliance. In addition, the Consent Order required that the firm remit $5,100 to the department. Of that amount, $3,000 constituted an administrative fine, $600 represented past due registration fees; and $1,500 would be applied to defray the agency’s investigative costs.
Kuhns Brothers Capital Management, Inc. became registered as an investment adviser in Connecticut on August 28, 2007.