Bulletin # 3104 - Week Ending August 18, 2023

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.

Order Revoking Mortgage Loan Originator License

On August 14, 2023, the Commissioner issued an Order Revoking Mortgage Loan Originator License (“Order”) in the Matter of: Jeffrey Lenard Moore (NMLS # 846468) (“Respondent”), Corona, California. The Order revokes Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Section 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes due to the revocation of Respondent’s mortgage loan originator license in Montana and Respondent’s failure to update his application on NMLS to disclose the revocation of his mortgage loan originator license in Montana, in violation of Section 36a-490(d)(3) of the Connecticut General Statutes.  

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Blackstone Wealth Solutions LLC, Paul Brian Kopman (CRD No. 2482456) and Matthew Craig Hults (CRD No. 3196510)

On August 16, 2023, the Banking Commissioner issued three separate Orders Imposing Fine (Matter No. CRF-23-202114-S) against Blackstone Wealth Solutions LLC, a purported precious metals dealer located at 13750 West Colonial Drive, Suite 360, Winter Garden, Florida 34787, Paul Brian Kopman, Chief Executive Officer of the firm, and Matthew Craig Hults, the firm’s President. Blackstone Wealth Solutions LLC is currently inactive. The Orders Imposing Fine were rendered by default, with each Respondent directed to pay a $100,000 penalty.

The Orders Imposing Fine had been preceded by a May 23, 2023 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Matter No. CRF-23-202114-S) against all three Respondents. The May 23, 2023 action alleged that beginning in 2019, Kopman and Hults convinced an elderly Connecticut investor to entrust the investor’s funds to them for the purpose of investing. Ultimately, without the investor's knowledge or authorization, over $300,000 of the investor's money was transferred from the investor’s securities brokerage account to a business account under the control of Blackstone Wealth Solutions LLC. Kopman purportedly impersonated the investor in facilitating the transfer of funds from the brokerage firm. When the investor later confronted Kopman, Kopman claimed that he had invested the withdrawn sums in silver, but was unable to provide the investor with proof that such investments had, in fact, been made. In addition, Respondents allegedly failed to return the investor’s funds.

Since none of the Respondents requested a hearing on the Order to Cease and Desist or the Order to Make Restitution, those orders became permanent as to Respondents Blackstone Wealth Solutions, LLC and Matthew Craig Hults on July 12, 2023 and as to Respondent Paul Brian Kopman on June 14, 2023.

Adopting as findings the allegations in the May 23, 2023 action, the Commissioner found that each of the three respondents violated the antifraud provisions in Section 36b-5(a) of the Connecticut Uniform Securities Act and engaged in dishonest or unethical practices in contravention of Section 36b-5(f) of the Act. The Commissioner also found that Respondent Blackstone Wealth Management, LLC transacted business as an unregistered investment adviser in violation of Section 36b-6(c) of the Act and that Respondents Kopman and Hults violated Section 36b-6(c)(2) of the Act by transacting business as unregistered investment adviser agents.