Bulletin # 3036 - Week Ending April 29, 2022

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 Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  Written comments will be considered only if they are received within ten business days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY

Order to Cease and Desist and Order Imposing Civil Penalty

On April 18, 2022, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: AVM Virtual Paralegal Services LLC a/k/a AVM Virtual Legal Services LLC (“AVM”), Oviedo, Florida. The basis of the Order was that AVM’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes at least one violation of Section 36a-671(b) of the Connecticut General Statutes, in effect at such time. The Commissioner ordered AVM to cease and desist from violating Section 36a-671(b) of the 2022 Supplement to the General Statutes, and imposed a civil penalty in the amount of $100,000 upon AVM. In addition, the Order to Make Restitution issued against Respondent on March 8, 2022 remains in effect and became permanent on March 29, 2022. 

  
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Adam Westphalen (CRD No. 2821723) 

On April 26, 2022, in a civil proceeding brought by the Commissioner to enforce a July 27, 2020 Order (Docket No. CRNDF-19-8408-S) against Adam Westphalen, principal of Mosaic Financial Strategies LLC, the Superior Court ordered Westphalen to reimburse affected investors $490,000 plus interest; pay the $900,000 fine imposed by the Commissioner's Order and pay an additional $400,000 for failing to comply with an order of the Commissioner (Jorge L. Perez, Banking Commissioner v. Adam Westphalen, No. HHD-CV21-6141624-S). The Superior Court had granted the Commissioner's June 3, 2021 Motion for Summary Judgment on November 17, 2021. 

The Commissioner's July 27, 2020 Order had found that Westphalen and Mosaic 1) violated Section 36b-31-14e of the Regulations under the Connecticut Uniform Securities Act by failing to update their regulatory filings to reflect their association with Triton Investment Partners LLC, Vista Financial Strategies LLC, Vista Investment Advisors LLC and Mosaic College Planners as well as New Horizon Financial Strategies, an entity from whom Mosaic received investment advisory fees; 2) violated Sections 36b-6(c)(1) and 36b-6(c)(2) of the Act by transacting business as an unregistered investment adviser and unregistered investment adviser agent, respectively; and 3) violated Section 36b-23 of the Act by making false or misleading statements to the department. The Order had also found that  1) Westphalen sold unregistered securities of Omni Oil and Gas, Inc., and Triton Investment Partners LLC in violation of Section 36b-16 of the Act; 2) Westphalen violated the antifraud provisions in Section 36b-4(a) of the Act in conjunction with sales of Omni Oil and Gas Inc. and Triton Investment Partners LLC to investors; and 3) Mosaic failed to preserve its investment advisory records as required by Section 36b-14(a)(1) of the Act and Section 36b-31-14b(a) of the Regulations.