CONSUMER CREDIT DIVISION ACTIVITY

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On September 29, 2015, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  Lamont G. Karriem d/b/a Hope for Home (“Respondent”), Mira Loma, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to repay ten identified Connecticut debtors plus interest, and to repay any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondent on or after October 1, 2009, any fees paid by such Connecticut debtor to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Order to Cease and Desist, Order to Make Restitution Made Permanent; $5,000 Fine Imposed

On October 6, 2015, the Banking Commissioner issued Findings of Fact, Conclusions of Law and an Order (Docket No. CRF-15-8179-S) with respect to Rosemarie Pokorski who did business under the name Second Impression.  The action had been preceded by a February 26, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleging that 1) from approximately February 1, 2012 to February 1, 2013, the respondent offered and sold unregistered securities in the form of investment agreements to at least four Connecticut residents; 2) respondent Pokorski allegedly told investors that she was in the business of buying antiques and collectibles in bulk, and that she would use the invested funds to purchase the goods, sell them and divide the profits with each investor on a percentage basis; and 3) in reality, respondent Pokorski spent most, if not all, of the investment proceeds on personal expenses and, in so doing, violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act.  Although respondent Pokorski requested a hearing on the allegations, she did not appear at the resulting proceeding.  Noting that the respondent had admitted to taking investor monies and not using the funds properly, the Commissioner adopted as findings the allegations in the February 26, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.  The Commissioner also rendered permanent the February 26, 2015 Order to Cease and Desist and Order to Make Restitution and fined the respondent $5,000.

Connecticut-registered broker-dealer Fined $35,000 For Supervisory Lapse Involving Unregistered Sales Assistants

On October 8, 2015, the Banking Commissioner entered a Consent Order (No. CO-15-8239-S) with respect to Citigroup Global Markets Inc., a Connecticut-registered broker-dealer.  The Consent Order was the result of a multi-state investigation and global settlement involving firm sales assistants who allegedly accepted customer orders at a time when the sales assistants were not registered under state securities laws. The conduct allegedly occurred between 2007 and 2014.  The Consent Order alleged that the firm failed to establish an adequate supervisory system in contravention of Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act and that, in employing unregistered agents, the firm violated Section 36b-6(b) of the Act.  In resolution of the matter, the firm agreed to pay a $35,000 fine to the state.

    Dated: Wednesday, October 14, 2015