Thomas Michael Bakitas and DRBS Algorithm, LLC Fined $2,500 for Unregistered Investment Advisory Activity

On September 10, 2018, the Banking Commissioner entered a Consent Order (Docket No. CF-18-8359-S) with respect to Thomas Michael Bakitas and DRBS Algorithm, LLC, a now dissolved Connecticut limited liability company. Bakitas and DRBS Algorithm, LLC had been the subject of a May 17, 2018 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-18-8359-S) alleging that DRBS Algorithm, LLC and Bakitas, a self-described “Professional trader, M.D. Physician, Mathematician & algorithm trading system inventor”, transacted investment advisory business absent registration under the Connecticut Uniform Securities Act.

In lieu of a hearing, the respondents agreed to the entry of a Consent Order directing them to cease and desist from regulatory violations and to pay a $2,500 fine to the agency.

John Mark Downing f/k/a John Mark Eseppi (CRD No. 1912842) - Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued

On September 13, 2018, the Banking Commissioner entered an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-18-8420-S) against John Mark Downing, now or formerly of 39 McLaughlin Terrace, Derby, Connecticut and 89 Shelton Avenue, Shelton, Connecticut. Downing was previously known as John Mark Eseppi.  On November 30, 2004, Downing had pleaded guilty in Connecticut state court to three counts of first-degree larceny arising out of his involvement in a Ponzi-like investment scheme conducted in Connecticut (Docket No. LLI-CR04-0577603-T) for which he served four years of his sentence in prison. In addition, on April 25, 2006, Downing pleaded guilty in Texas criminal court to one felony count of a false statement in connection with the sale of securities (Docket No. F04-00197-GIR).

The September 13, 2018 action alleged that, in 2017, Downing persuaded a Connecticut investor to grant him access to the investor’s brokerage account at TD Ameritrade, Inc. so he could manage the investor’s account. Downing stated that he would only trade $5,000 in the account in exchange for receiving a share of the profits from any trading gains. Downing also purportedly represented to the investor that, if he managed the account, there would be no losses in the account; and that, if any trading losses occurred, he would refund the account immediately. Ultimately, Downing incurred $23,400 in trading losses which the investor was unsuccessful in recouping.

The Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleged that Downing violated Section 36b-6(c)(1) of the Connecticut Uniform Securities Act by transacting business as an investment adviser while unregistered, and that, in connection with such activity, Downing violated the antifraud provisions in Section 36b-5(a) of the Act.

Downing was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.