The Department of Banking News Bulletin
Bulletin # 2905 - Week Ending October 25, 2019
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, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
Daniel Reens (CRD No. 6576660) - Consent Order Entered
The Consent Order alleged that, from approximately January 2016 to approximately January 2019, Reens violated Section 36b-5(f) of the Connecticut Uniform Securities Act by paying a portion of the investment advisory fees he received from Horter Investment Management, LLC to Safe Harbor Retirement, an unregistered entity that was associated with Safe Harbour LLC, and failing to disclose this arrangement to affected Horter Investment Management, LLC clients. The Consent Order also alleged that Daniel Reens violated Section 36b-31-14e(a) of the Regulations under the Act by failing to amend his regulatory filings to disclose that he was doing business as Bulwark Financial, LLC.
The Consent Order directed Daniel Reens to cease and desist from regulatory violations and, in light of the cooperation displayed by Reens in connection with the agency's review, fined him $4,000.
GHC Fund One LLC a/k/a Gilbert Hill Fund I, LLC – Order Imposing Fine Entered
On October 23, 2019, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-19-8311-S) against GHC Fund One LLC a/k/a Gilbert Hill Fund I, LLC, now or formerly of 49 Richmondville Avenue, Westport, Connecticut 06880. GHC Fund One LLC had been the subject of a June 25, 2019 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-19-8311-S) alleging that in 2008, $300,000 of GHC Fund One LLC membership interests were sold to a Massachusetts investor with the representation that the investor's monies would be used by GHC Fund One LLC to implement its day trading strategy; that, in actuality, the investor's monies were used to purchase shares of an unrelated entity based in Waterbury, Connecticut; that the investor made a second investment of $50,000 in 2009; and that at least a portion of the total investment was used to pay the personal expenses of the Respondent’s control person. The June 25, 2019 action alleged that the foregoing conduct constituted a violation of Sections 36b-16 and 36b-4(a) of the Connecticut Uniform Securities Act. Since the Respondent failed to request a hearing on the Order to Cease and Desist and Order to Make Restitution, the Order to Cease and Desist and Order to Make Restitution became permanent on September 24, 2019.
Similarly, the Respondent did not request a hearing on the Notice of Intent to Fine, and the October 23, 2019 Order Imposing Fine was entered by default. Finding that the Respondent violated Sections 36b-16 and 36b-4(a) of the Act, the Commissioner fined the Respondent $100,000.