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RALPH UPTON SCOTT * * * * * * * * * * * * * * * * * * |
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STIPULATION AND
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WHEREAS, Ralph Upton Scott (IARD No. 128237) (“Scott”), a sole proprietor, is an investment adviser with its principal office at 271 Sylvan Knoll Road, Stamford, Connecticut 06902. Scott has been registered as an investment adviser under Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), from May 1, 1997 to December 31, 2016, and since February 8, 2017 to the present;
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of the Act and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;
WHEREAS, in connection with an examination of Scott, the staff of the Securities and Business Investments Division (“Division”) of the Department of Banking (“Department”) ascertained that Scott failed to maintain a general ledger or journal of income and expenses and failed to maintain evidence that Scott offered its clients the Form ADV, Part II on a yearly basis;
WHEREAS, in failing to maintain the above-referenced documents, Scott violated Section 36b-14(a)(1) of the Act;
WHEREAS, after the Division put Scott on notice of the above deficiencies, Scott took measures to correct the deficiencies;
WHEREAS, the Commissioner believes that the foregoing evidence would support the imposition of administrative sanctions against Scott pursuant to Section 36b-15 of the Act and Section 36b-27 of the 2018 Supplement to the General Statutes (“2018 Supplement”);
WHEREAS, an administrative proceeding initiated under Section 36b-15 of the Act and Section 36b-27 of the 2018 Supplement would constitute a “contested case” within the meaning of Section 4-166(4) of the General Statutes of Connecticut;
WHEREAS, Section 4-177(c) of the General Statutes of Connecticut and Section 36a-1-55(a) of the Regulations of the Connecticut State Agencies provide that a contested case may be resolved by stipulation or agreed settlement, unless precluded by law;
WHEREAS, the Commissioner and Scott desire to settle the matters described herein and voluntarily enter into this Stipulation and Agreement, acknowledging that this Stipulation and Agreement is in lieu of any court action or administrative proceeding adjudicating any issue of fact or law on the matters described herein and is being made to settle only the matters described herein;
WHEREAS, Scott expressly consents to the Commissioner’s jurisdiction under the Act and to the terms of this Stipulation and Agreement;
WHEREAS, Scott, through the execution of this Stipulation and Agreement, voluntarily waives any rights Scott may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;
AND WHEREAS, Scott specifically assures the Commissioner that none of the violations alleged in this Stipulation and Agreement shall occur in the future.
NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
| 1. |
No later than the date this Stipulation and Agreement is executed by the Commissioner, Scott shall remit to the Department by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut” the sum of two thousand five hundred dollars ($2,500) which shall constitute an administrative fine; |
| 2. |
Scott, its representatives, agents, employees, affiliates, assigns and successors in interest shall refrain from engaging in conduct constituting or which would constitute a violation of the Act or any regulation, rule or order adopted or issued under the Act, either directly or through any person, organization or other device, including, without limitation, failing to maintain required records; |
| 3. | Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Scott or its successors in interest based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof; and |
| 4. | This Stipulation and Agreement shall become binding when executed by Scott and the Commissioner. |
IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.
| Dated at Hartford, Connecticut, | _____/s/_____________ | |
| this 5th day of July 2018. | Jorge L. Perez | |
| Banking Commissioner |
I, Ralph Upton Scott, state that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; [and] that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
| By: | _______/s/_______ | |
| Ralph Upton Scott |
State of: Connecticut
County of: Fairfield
On this the 25th day of June 2018, before me, the undersigned officer, personally appeared Ralph Upton Scott, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_____/s/________________________________
Notary Public
Date Commission Expires: February 28, 2020