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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.

On November 23, 2010, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Grove Electronics, LLC, an issuer of promissory notes located at 197 Main Street, Suite 206, North Reading, Massachusetts.  The action alleged that, in contravention of Section 36b-6 of the Connecticut Uniform Securities Act, the respondent sold securities through one James Fowler Hickman, an unregistered agent of issuer.  Grove Electronics, LLC was afforded an opportunity to request a hearing on the Order to Cease and Desist and the Notice of Intent to Fine. On November 19, 2010, the Banking Commissioner entered an Order Imposing Fine against Jason Alexander Lawson of 134-25 Franklin Avenue, #303, Flushing, New York.  The respondent had been the subject of an August 23, 2010 Order to Cease and Desist and Notice of Intent to Fine alleging that he participated in a transaction involving procuring funds from a Connecticut investor for the purported purpose of investing in securities of Ionic Water Technologies Inc.  In reality, the investor’s monies were deposited into a J. Lawson & Associates, Inc. bank account established by Jason Alexander Lawson and Daniel Morris Porter who used the investor’s money for their personal use and not for the purchase of securities.  The August 23, 2010 action had also alleged that the investor did not receive either Ionic Water Technologies Inc. securities or a return of funds paid.  The August 23, 2010 action further alleged that Jason Alexander Lawson materially aided in a violation of both the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act and the registration provisions in Section 36b-6(a) of the Act.  Since respondent Jason Alexander Lawson did not request a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent as to him on October 13, 2010.

In fining Jason Alexander Lawson $40,000, the Commissioner found that Jason Alexander Lawson violated Sections 36b-6(a) and 36b-4(a) of the Act.  Respondent Jason Alexander Lawson did not appear or contest the imposition of the fine.

On November 19, 2010, the Banking Commissioner entered an Order Imposing Fine against Daniel Morris Porter d/b/a D.P. Holdings Inc. of 1390 Vespucci Avenue, Copiague, New York and 109 Maple Parkway, Staten Island, New York.  The respondent had been the subject of an August 23, 2010 Order to Cease and Desist and Notice of Intent to Fine alleging that he participated in a transaction involving procuring funds from a Connecticut investor for the purported purpose of investing in securities of Ionic Water Technologies Inc.  In reality, the investor’s monies were deposited into a J. Lawson & Associates, Inc. bank account established by Daniel Morris Porter and Jason Alexander Lawson who used the investor’s money for their personal use and not for the purchase of securities.  The August 23, 2010 action had also alleged that the investor did not receive either Ionic Water Technologies Inc. securities or a return of funds paid.  The August 23, 2010 action had further alleged that 1) respondents Daniel Morris Porter and J. Lawson & Associates, Inc. transacted business as broker-dealers in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and that respondent Jason Alexander Lawson materially aided in such violation; and 2) respondents Daniel Morris Porter and J. Lawson & Associates, Inc., with the material assistance of respondent Jason Lawson, violated the antifraud provisions in Section 36b-4(a) of the Act.  Since respondent Daniel Morris Porter did not request a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent as to him on September 11, 2010. On November 19, 2010, the Banking Commissioner entered an Order Imposing Fine against J. Lawson & Associates, Inc. of 134-25 Franklin Avenue, #303, Flushing, New York.  The respondent had been the subject of an August 23, 2010 Order to Cease and Desist and Notice of Intent to Fine (Docket No. CF-10-7399-S) alleging that it, together with Jason Alexander Lawson and Daniel Morris Porter, participated in a transaction involving procuring funds from a Connecticut investor for the purported purpose of investing in securities of Ionic Water Technologies Inc.  In reality, the investor’s monies were deposited into a J. Lawson & Associates, Inc. bank account established by Daniel Morris Porter and Jason Alexander Lawson who used the investor’s money for their personal use and not for the purchase of securities.  The August 23, 2010 action had also alleged that the investor did not receive either Ionic Water Technologies Inc. securities or a return of funds paid.  The August 23, 2010 action had further alleged that 1) respondents J. Lawson & Associates, Inc. and Daniel Morris Porter transacted business as broker-dealers in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and that respondent Jason Alexander Lawson materially aided in such violation; and 2) respondents J. Lawson & Associates, Inc. and Daniel Morris Porter, with the material assistance of respondent Jason Lawson, violated the antifraud provisions in Section 36b-4(a) of the Act.  Since respondent J. Lawson & Associates, Inc. did not request a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent as to it on October 13, 2010.

In fining J. Lawson & Associates, Inc. $50,000, the Commissioner found that the respondent violated Sections 36b-6(a) and 36b-4(a) of the Act.  Respondent J. Lawson & Associates, Inc. did not appear or contest the imposition of the fine.