On January 19, 2011, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Cynergy Advance Services, LLC of 1128 Royal Palm Beach Boulevard, Suite 145, Royal Palm Beach, Florida and 615 West Johnson Avenue, Suite 202, Cheshire, Connecticut.  Also named as a respondent was Shelly A. Richard of 98 Waverly Street, Cheshire, Connecticut and 745 Main Street, Newington, Connecticut.  The action alleged that in 2008, respondent Richard, acting on behalf of Cynergy Advance Services, LLC, sold unregistered securities of Cynergy Advance Services, LLC from Connecticut, promising a 10% annual return.  The action also alleged that 1) the respondents failed to pay investors any principal or interest on the securities, and 2) that the respondents did not apprise investors of the investment risks involved or provide information on Cynergy Advance Service, LLC or the company’s ability to meet its obligations in connection with the securities offered.  The action alleged that the respondents’ conduct violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act; and that respondent Richard transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.  The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.

On January 20, 2011, the Banking Commissioner entered an Order revoking the broker-dealer registration of Westrock Advisors, Inc. and fining the firm $250,000.  The firm maintains its principal office at 230 Park Avenue, New York, New York.  The action had been preceded by a December 8, 2010 Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine alleging that Westrock Advisors, Inc. violated a September 4, 2008 Consent Order to which it was subject by selling unregistered Pink Sheet securities, opening options accounts for Connecticut customers who did not qualify as “accredited investors”; and failing to reimburse the Division for the costs associated with
an examination of the firm’s Melville, New York office.  The December 8, 2010 action had also alleged that the firm failed to provide Division staff with material records; failed to comply with minimum net capital requirements; and failed to enforce and maintain adequate supervisory procedures with respect to the usage of sales scripts and with respect to compliance with the terms of the 2008 Consent Order.  The Order to Cease and Desist, being uncontested, had become permanent on January 6, 2011.

The firm likewise failed to appear or contest the Notice of Intent to Revoke Registration as Broker-dealer and the Notice of Intent to Fine.  Section 36a-1-31(a) of the Regulations of Connecticut State Agencies states that a party’s failure to timely request a hearing may result in the allegations against that party being deemed admitted.  In ordering that the firm’s broker-dealer registration be revoked and that the firm be fined $250,000, the Commissioner found that Westrock Advisors, Inc. violated the 2008 Consent Order as well as Sections 36b-16 and 36b-14(d) of the Connecticut Uniform Securities Act and Sections 36b-31-14f, 36b-31-9b(a), 36b-31-9b(b), 36b-31-9b(c) and 36b-31-6f of the Regulations under the Act.