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MCMAHAN SECURITIES CO. L.P.
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CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, McMahan, through its execution of this Consent Order, voluntarily waives the following rights:
|1.||To receive prior written notice within the meaning of Sections 36b-15(f), 36b-27(a), 36b-27(d) and 4-177(b) of the Connecticut General Statutes;|
|2.||To present evidence and argument and to otherwise avail itself of Section 4-177c(a) of the Connecticut General Statutes;|
|3.||To present its position in a hearing in which it is represented by counsel;|
|4.||To have a written record of the hearing made and a written decision issued by a hearing officer; and|
|5.||To seek judicial review of, or otherwise challenge or contest, the matters described herein, including the validity of this Consent Order;|
CONSENT TO ENTRY OF FINDINGS
WHEREAS, McMahan, through its execution of this Consent Order, accepts and consents to the entry of the following Findings by the Commissioner:
|1.||That the entry of this Consent Order is appropriate, in the public interest and consistent with the purposes fairly intended by the policy and provisions of the Act;|
|2.||In contravention of Section 36b-6(b) of the Act, McMahan employed numerous unregistered agents who effected securities transactions in this state, many of which were unregistered for an extended period of time;|
|3.||In its failure to uncover such unregistered activity, McMahan failed to implement procedures designed to achieve compliance with applicable securities laws and regulations as required under Section 36b-31-6f of the Regulations;|
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, McMahan, through its execution of this Consent Order, consents to the Commissioner issuing an order imposing on it the following sanctions:
|1.||McMahan, its partners, officers, representatives, agents, employees, affiliates and successors in interest shall cease and desist from engaging, directly or indirectly, in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, including, without limitation, employing unregistered agents in contravention of Section 36b-6(b) of the Act;|
|2.||McMahan will establish, implement and maintain revised written supervisory procedures and update its supervisory systems as required under Section 36b-31-6f of the Regulations to ensure that all persons who require agent registration are properly registered;|
|3.||No later than the date this Consent Order is entered by the Commissioner, McMahan shall remit to the department by certified bank check payable to “Treasurer, State of Connecticut” the sum of twenty thousand one hundred thirty dollars ($20,130), thirteen thousand dollars ($13,000) of which shall constitute an administrative fine and seven thousand one hundred and thirty dollars ($7,130) of which shall represent reimbursement for past due agent registration fees;|
THE COMMISSIONER HEREBY ORDERS THAT:
|1.||The Findings and Sanctions set forth above be and are hereby entered;|
|2.||Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against McMahan, its partners, officers, representatives, agents, employees, affiliates and successors in interest based upon a violation of this Consent Order or the matters underlying its entry if the Commissioner determines that compliance is not being observed with the terms hereof or if any representation made by McMahan and reflected herein is subsequently determined to be untrue; and|
|3.||This Consent Order shall become final when entered.|
Howard F. Pitkin
this 5th day of January 2010.
CONSENT TO ENTRY OF ORDER
I, David Bruce McMahan, state on behalf of McMahan Securities Co. L.P., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of McMahan Securities Co. L.P.; that McMahan Securities Co. L.P. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that McMahan Securities Co. L.P. voluntarily consents to the entry of this Consent Order expressly waiving any rights it may have to a hearing on the matters described herein.
McMahan Securities Co. L.P.
David Bruce McMahan
Chief Executive Officer
On this 30th day of December, 2009 personally appeared David Bruce McMahan, signer of the foregoing Consent Order, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of McMahan Securities Co. L.P., a limited partnership, and acknowledged the same to be his free act and deed, before me.
Notary Public/Commissioner of the Superior Court
My Commission Expires: May 31, 2013