Bulletin # 3137 - Week Ending April 5, 2024

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.

FIDUCIARY LICENSE ACTIVITY 

Business and Industrial Development Corporation

On April 3, 2024, Better Local Capital, LLC, a commercial small-business lender headquartered in New Haven, CT, filed an application for a license as a business and industrial development corporation pursuant to Section 36a-628 of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY 

Burns Capital Investments LLC and Thomas Zachary Burns

On April 3, 2024, the Banking Commissioner entered Findings of Fact, Conclusions of Law and an Order (Matter No. CRF-23-2022246-S) against Burns Capital Investments LLC and Thomas Zachary Burns, now or formerly of 1401 Windsor Station Drive, Windsor, Connecticut 06095 and 16A Windsor Street, Enfield, Connecticut 06082. The respondents had been the subject of a September 18, 2023 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Matter No. CRF-23-2022246-S). Respondents did not appear at the November 15, 2023 hearing.

The Order found that, from approximately December 2021 through August 2022, Burns, on behalf of himself and Burns Capital Investments LLC, raised at least $148,000 from at least nine investors for the purpose of investing their monies in a pooled cryptocurrency fund. Interests in the cryptocurrency fund were not registered in violation of Section 36b-16 of the Connecticut Uniform Securities Act. The Order also found that the Respondents violated the antifraud provisions of the Act by, among other things, falsely claiming that trades would be executed on a Coinbase cryptocurrency exchange; that Burns Capital Investments LLC was licensed and regulated as a money transmitter in Connecticut when that was not the case; by falsely stating the accounts were insured by SIPC; by commingling and diverting investor funds to their own use; and by failing to disclose to investors the risks involved.

The Order also found that the Respondents engaged in unregistered investment advisory activity in violation of Section 36b-6(c)(1) of the Act, and that Respondents violated section 3b-23 of the Act by making materially false or misleading statements in connection with an agency investigation.

The April 3, 2024 Order rendered the September 18, 2023 Order to Cease and Desist and the September 18, 2023 Order to Make Restitution permanent, and directed Respondents to pay restitution to affected investors within 60 days. In addition, the April 3, 2024 Order fined Respondents $700,000, jointly and severally.

Archer Micro Cap Value Fund, Limited Partnership and Artemis Capital Group L.L.C.

On April 4, 2024, the Banking Commissioner entered two separate Orders Imposing Fine (No. CF-24-10824-S) against Archer Micro Cap Value Fund, a private investment fund located at 210 South Main Street, 1st Floor, Middletown, Connecticut and Artemis Capital Group L.L.C., general partner of Archer Micro Cap Value Fund. The actions had been preceded by a January 19, 2024 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (No. CF-24-10824-S) alleging that the respondents sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act, and that, between May 2015 and January 2017, Artemis Capital Group L.L.C. transacted business as an unregistered investment adviser by rendering investment advisory services to the Archer Micro Cap Value Fund. Since neither Respondent requested a hearing, the Order to Cease and Desist became permanent as to each on February 9, 2024.

Neither respondent requested a hearing on the Notice of Intent to Fine.  Accordingly, the Commissioner adopted as findings the allegations in the original Order to Cease and Desist and Notice of Intent to Fine. Finding that Archer Micro Cap Value Fund committed at least one violation of Section 36b-16 of the Connecticut Uniform Securities Act, the Commissioner fined that entity $10,000.  The Commissioner also found that Artemis Capital Group L.L.C. violated Section 36b-16 of the Act and transacted business as an unregistered investment adviser in violation of Section 36b-6(c)(1) of the Act. Artemis Capital Group L.L.C. was fined $20,000.

      Dated:  Tuesday, April 9, 2024

      Jorge L. Perez
      Banking Commissioner