Moniodes Nicholas Consent Order

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IN THE MATTER OF:

NICHOLAS JOHN MONIODES

d/b/a MONIODES INVESTMENTS

(CRD No. 1826844)

("Respondent")

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CONSENT ORDER

DOCKET NO. CO-15-8065-S

I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;

WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36b-26(a) of the Act into the activities of Nicholas John Moniodes d/b/a Moniodes Investments to determine if he had violated, was violating or was about to violate provisions of the Act or Regulations;

WHEREAS, on July 9, 2014, the Commissioner, acting pursuant to Section 36b-27 of the Act, issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (collectively “Notice”) (Docket No. CRF-8065-S) against Respondent, which Notice is incorporated by reference herein;

WHEREAS, on July 31, 2014, Respondent requested a hearing on the matters alleged in the Notice;

WHEREAS, on August 4, 2014, the Commissioner issued a Notification of Hearing and Designation of Hearing Officer, wherein Commissioner scheduled the hearing on the matters alleged in the Notice for September 23, 2014 and appointed Department of Banking Attorney Stacey Serrano as the Hearing Officer on the matters alleged in the Notice;

WHEREAS, Hearing Officer Serrano granted several continuances of the Hearing, which was ultimately scheduled for February 24, 2015;

WHEREAS, Respondent has provided the Division with written proof that on February 12, 2015 Respondent remitted to the investor referenced in the Notice the sum of thirty two thousand dollars ($32,000), representing full restitution to the investor;

WHEREAS, Section 36b-31(a) of the Act provides, in relevant part, that “[t]he commissioner may from time to time make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-34, inclusive”;

WHEREAS, Section 36b-31(b) of the Act provides, in relevant part, that “[n]o . . . order may be made . . . unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of sections 36b-2 to 36b-34, inclusive”;

WHEREAS, an administrative proceeding initiated under Section 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the General Statutes of Connecticut;

WHEREAS, Section 36b-27(f) of the Act provides, in relevant part, that “[a]ny time after the issuance of an order or notice provided for in subsection (a) . . . (b) . . . or subdivision (1) of subsection (d) of this section, the commissioner may accept an agreement by any respondent named in such order or notice to enter into a written consent order in lieu of an adjudicative hearing”;

WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;

WHEREAS, Respondent and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings;

WHEREAS, the Commissioner finds that the issuance of this Consent Order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;

WHEREAS, Respondent has provided documentation to the Division indicating that he is financially unable to pay any fine that might have been ordered as a result of the Notice or as a term of this Consent Order pursuant to Section 36b-27(f) of the Act;

AND WHEREAS, Respondent specifically assures the Commissioner that none of the violations alleged in the Notice shall occur in the future.

II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS

WHEREAS, Respondent, through his execution of this Consent Order, voluntarily waives the following rights with respect to the Notice:

1.	To be afforded an opportunity for a hearing within the meaning of Section 36b-27 of the Act and Section 4-177(a) of the General Statutes of Connecticut;
2.	To present evidence and argument and to otherwise avail himself of Section 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut;
3.	To present his position in a hearing in which he 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.

III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS

WHEREAS, through his execution of this Consent Order, Respondent acknowledges the Commissioner’s allegations that Respondent violated Sections 36b-16 and 36b-4 of the Act, and does not admit or deny these allegations, but agrees that evidence exists from which the Commissioner could find facts to support the issuance of an order to cease and desist, an order to make restitution, and/or an order imposing a maximum administrative fine of One Hundred Thousand Dollars ($100,000) per violation of the Act, or any regulation, rule or order adopted or issued under the Act.

WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondent an opportunity for a hearing;

AND WHEREAS, Respondent acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below.

IV. CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Respondent, through his execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing on him the following sanction:

Respondent shall cease and desist from directly or indirectly violating the provisions of the Act and the Regulations, including without limitation engaging in any activity in or from Connecticut that violates Sections 36b-16 or 36b-4 of the Act.

V. CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1.	The Sanction set forth above is and is 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 Respondent based upon a violation of this Consent Order if the Commissioner determines that compliance with the terms herein is not being observed;
3.	Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Respondent based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act;
4.	Pursuant to Rule 506(d)(2)(iii) of federal Regulation D, the entry of this Consent Order by the Commissioner does not give rise to a disqualification under Rule 506(d)(1) of federal Regulation D, 17 C.F.R. Section 230.506(d)(1); and,
5.	This Consent Order shall become final when entered.

So ordered at Hartford, Connecticut,		____/s/___________________
this 23 day of February 2015		Bruce Adams
Acting Banking Commissioner

CONSENT TO ENTRY OF ORDER

I, Nicholas John Moniodes state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I consent to the entry of this Consent Order.

________/s/__________

Nicholas John Moniodes

State of: New York

County of: Queens

On this the 18th day of February 2015, before me, Oksana Glasser, the undersigned officer, personally appeared Nicholas John Moniodes, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.

_____/s/____________________________

Notary Public

Date Commission Expires: Sept. 08, 2018

Administrative Orders and Settlements

State of Connecticut Department of Banking