The Department of Banking News Bulletin
Bulletin # 2956 - Week Ending October 16, 2020
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.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
On October 7, 2020, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-20-2021959-S) with Quint Wealth Management, Inc. of 10 Raymond Avenue, Poughkeepsie, New York 12603. The firm, which has no Connecticut place of business, became registered as an investment adviser with the Securities and Exchange Commission on June 1, 2020 and was previously registered as an investment adviser under the Connecticut Uniform Securities Act.
The Stipulation and Agreement alleged that, from April 2016 through June 2020, the firm engaged an unregistered investment adviser agent in violation of Section 36b-6(c)(3) of the Act. The Stipulation and Agreement acknowledged the firm's representation that the failure to register the investment adviser agent was due to faulty advice from a compliance consultant.
In resolution of the matter, the firm agreed to refrain from regulatory violations and to pay $5,000 to the department. Of that amount, $4,500 constituted an administrative fine and $500 represented reimbursement for past due investment adviser agent registration fees.
Edward Kenneth Crowe (CRD No. 3248161)
On October 13, 2020, the Banking Commissioner entered a Consent Order (No. Co-20-202028-S) with respect to Edward Kenneth Crowe of Sherman, Connecticut. Crowe is the owner of Edward K. Crowe & Associates, LLC, a Connecticut limited liability company offering insurance products and services.
The Consent Order alleged that from approximately June 2015 to approximately August 2017, Crowe sold approximately $250,000 of interests in various investment funds offered by Woodbridge Group of Companies, LLC d/b/a Woodbridge Wealth (“Woodbridge”) to three investors. Woodbridge Group of Companies, LLC, based in California, was a defendant in a civil action brought by the Securities and Exchange Commission alleging that it operated a purported Ponzi scheme. One of the investors was reimbursed $100,000 plus interest from Woodbridge. For his role in selling interests in the Woodbridge funds, Crowe received $4,500 in remuneration from Woodbridge. The Consent Order also stated that Crowe himself had purchased $94,000 of interests in the Woodbridge Funds. The Consent Order alleged that Crowe violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities and that he transacted business as unregistered agent of issuer in contravention of Section 36b-6(a) of the Act. The Consent Order acknowledged Crowe's representation that, based on legal documents supplied to him by Woodbridge, he believed that the Woodbridge Funds were not securities and that securities registration was unnecessary.
The Consent Order fined Crowe $10,000 and directed him to cease and desist from regulatory violations. In addition, the Consent Order required that Crowe disgorge to affected investors the $4,500 in remuneration he earned from Woodbridge. The monies would be deposited with Crowe's legal counsel which would then oversee disbursement of the funds to investors.
Dated: Tuesday, October 20, 2020