Bulletin # 2666
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 Jorge L. Perez, Banking Commissioner Designate, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY
On March 19, 2015 the Commissioner entered into a Consent Order with Customized Mortgage Solutions, LLC (NMLS # 214882) (“Customized Mortgage Solutions”), Whippany, New Jersey. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on January 13, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Customized Mortgage Solutions. The Commissioner alleged that Customized Mortgage Solutions failed to timely file certain quarterly information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes. As part of the Consent Order, Customized Mortgage Solutions paid $500 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Registration Suspended; $50,000 Fine Imposed
On March 24, 2015, the Banking Commissioner entered a Consent Order (Docket No. CFNR-14-8132-S) with respect to Meyers Associates, L.P. and Bruce Meyers, Chief Executive Officer of the firm. The firm maintains its principal office in New York. Meyers Associates, L.P. and Bruce Meyers were the subject of a February 13, 2015 Amended and Restated Order to Cease and Desist, Amended and Restated Notice of Intent to Revoke Registration as a Broker-dealer and as a Broker-dealer Agent and Amended and Restated Notice of Intent to Fine. The action amended the Commissioner’s February 10, 2014 Order to Cease and Desist, Notice of Intent to Revoke Registration as a Broker-dealer, Notice of Intent to Revoke Registration as a Broker-dealer Agent and Notice of Intent to Fine (Docket No. CFNR-14-8132-S). As amended, the action had alleged that 1) both the firm and Bruce Meyers failed to discharge their supervisory responsibilities; 2) the firm violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities; 3) the firm, with the material assistance of Bruce Meyers, violated Section 36b-14(d) of the Act and Section 36b-31-14f of the Regulations thereunder by failing to make required books and records available to the Commissioner; 4) the firm failed to maintain complete and accurate books and records; 5) the firm failed to halt improper commission splitting by its agents; 6) the firm engaged in dishonest or unethical practices in the securities business; 7) prior sanctions entered by FINRA against the firm and Bruce Meyers provided additional grounds for the Connecticut revocation action; 8) the firm provided inaccurate, false or misleading information to the Commissioner; and 9) the firm employed at least one unregistered agent in violation of Section 36b-6(b) of the Connecticut Uniform Securities Act.
The Consent Order settled the matters alleged in the February 13, 2015 Amended and Restated Notice.
In addition to directing both respondents to cease and desist from regulatory violations, the Consent Order required that the respondents pay a $50,000 fine to the department. In addition, the Consent Order suspended the firm's Connecticut broker-dealer registration for 60 days. If, following that 60 day period, the fine remained unpaid, the suspension would remain in effect until the fine was paid in full. The Consent Order also required that respondent Bruce Meyers withdraw his Connecticut registration as a broker-dealer agent of Meyers Associates, L.P.
The Consent Order also obligated Meyers Associates, L.P. to 1) retain an independent consultant to review the firm’s compliance procedures; and 2) notify the Division within seven business days of any reportable disciplinary items, including, without limitation, pending regulatory investigations and inquiries initiated against Meyers Associates, L.P. or any of its officers, directors, control persons, agents, employees or representatives.
In addition, the Consent Order restricted the firm's Connecticut business activity for three years to transactions in investment company securities; governmental securities; exchange-listed options; and securities listed on the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market, and the NASDAQ Capital Market. During the three year period, the firm would be prohibited from selling in Connecticut securities listed or traded on the OTC Bulletin Board, OTCQB marketplace or the OTC Pink marketplace.
Dated: Tuesday, March 31, 2015
Jorge L. Perez
Banking Commissioner Designate