Proposed Findings of Fact, Conclusions of Law and Notice of Right to Hearing

On May 6, 2016, the Commissioner issued a Proposed Findings of Fact, Proposed Conclusions of Law and Notice of Right to Hearing (“Notice”) in the Matter of: Great Plains Lending, LLC, John R. Shotton, and Clear Creek Lending (collectively, “Respondents”). The Notice was issued in response to the Memorandum of Decision issued by Judge Carl J. Schuman of the Superior Court, Judicial District of New Britain on November 23, 2015, and as part of proceedings related to Orders issued by the Commissioner against Respondents on October 24, 2014 (see Bulletin # 2645) and January 6, 2015 (see Bulletin #2655) alleging various violations of Connecticut’s small loan laws. Respondents have been afforded an opportunity to request a hearing on the matters set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Permanent Bar Issued

On May 13, 2016, the Banking Commissioner entered a Consent Order (No. CO-16-8275-S) with respect to Paul Anthony Steffany, a former broker-dealer agent of Raymond James & Associates, Inc.  The Consent Order alleged that grounds existed for initiating administrative proceedings under Section 36b-15(a) of the Connecticut Uniform Securities based on an October 8, 2015 bar (No. 2014041650301) imposed by the Financial Industry Regulatory Authority against Steffany.  The FINRA action had alleged that Steffany was trustee of a testamentary trust for an estate that was a customer of Raymond James; that from January 2007 through April 2014, Steffany violated NASD Rule 2330(a), FINRA Rule 2150(a), NASD Rule 2110, and FINRA Rule 2010 by converting at least $112,742 of estate funds purportedly as compensation for Steffany’s services as trustee; that Steffany converted the funds by transferring monies from the estate’s brokerage account at Raymond James to an estate bank account held outside of the firm, having the bank account statements sent to his home to conceal his conduct from Raymond James and writing checks from the estate account to cover his personal expenses; and that from August 2007 through April 2014, Steffany violated NASD Rule 2110 and FINRA Rule 2010 by forging the signature of a co-executor on at least twelve checks made payable to the estate and later used certain of these funds for his personal use.  According to the FINRA action, Steffany ultimately refunded approximately $112,742 to the estate and resigned as trustee.

The Consent Order permanently barred Steffany from 1) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; 2) soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut; 3) engaging in any activity that would require Steffany to obtain a license or register under Chapters 668 or 669 of the Connecticut General Statutes governing Nondepository Financial Institutions and Regulated Activities, respectively, and 4) serving as a control person, qualified individual or branch manager of any entity regulated by the Commissioner under Chapter 668 of the Connecticut General Statutes.