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CAROLYN SETTZO * * * * * * * * * * * * * * * * * |
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CONSENT ORDER No. CO-15-8257-S |
I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (the “Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (the “Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (the “Regulations”) promulgated under the Act;
WHEREAS, Carolyn Settzo is a Connecticut resident and Certified Financial Planner who provided financial planning services as a sole proprietor from approximately 2009 to 2014 when she formed Carolyn Settzo Financial Plans, LLC (“CSFP”) as a single member limited liability company;
WHEREAS, in October 2014, CSFP of 1 Franklin Court, Newtown, Connecticut 06470 became registered as an investment adviser under the Act, and Carolyn Settzo became registered as an investment adviser agent of that firm in Connecticut;
WHEREAS, Carolyn Settzo has no previously reported disciplinary history;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (the “Division”) of the Department of Banking, has conducted an examination of CSFP’s records pursuant to Section 36b-14(d) of the Act and Section 36b-31-14f of the Regulations, and a related investigation under Section 36b-26 of the Act to determine whether CSFP, its members, officers, representatives, agents, employees, predecessors or affiliates had violated, were violating or were about to violate any provision of the Act or any regulation or order under the Act;
WHEREAS, as a result of such examination and investigation, the Commissioner uncovered evidence that some of the financial plans prepared by Carolyn Settzo while a sole proprietor contained advice on securities such that registration as an investment adviser under Section 36b-6(c) of the Act would have been required;
WHEREAS, the foregoing allegations, if proven, would support the initiation of administrative suspension, revocation or restrictive proceedings under Section 36b-15(a)(2)(B) of the Act and/or administrative proceedings seeking the entry of an order to cease and desist and/or the imposition of an administrative fine under Section 36b-27 of the Act;
WHEREAS, Section 36b-31(a) of the Act provides, in relevant part, that “[t]he commissioner may from time to time make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-34, inclusive”;
WHEREAS, Section 36b-31(b) of the Act provides, in relevant part, that “[n]o . . . order may be made . . . unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of sections 36b-2 to 36b-34, inclusive”;
WHEREAS, an administrative proceeding initiated under Sections 36b-15 and 36b-27 of the Act 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 Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Carolyn Settzo reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;
WHEREAS, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Carolyn Settzo reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;
WHEREAS, Carolyn Settzo expressly consents to the Commissioner’s jurisdiction under the Act and to the terms of this Consent Order;
WHEREAS, the Commissioner finds that the issuance of this Consent Order is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;
AND WHEREAS, Carolyn Settzo, through her execution of this Consent Order, specifically assures the Commissioner that none of the violations alleged in this Consent Order shall occur in the future.
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Carolyn Settzo, through her execution of this Consent Order, voluntarily waives the following rights:
| 1. | To be afforded notice and an opportunity for a hearing within the meaning of Sections 36b-15 and 36b-27 of the Act and Section 4-177(a) of the General Statutes of Connecticut; |
| 2. | To present evidence and argument and to otherwise avail herself of Sections 36b-15 and 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut; |
| 3. | To present her position in a hearing in which she is represented by counsel; |
| 4. | To have a written record of the hearing made and a written decision issued by a hearing officer; and |
| 5. | To seek judicial review of, or otherwise challenge or contest the matters described herein, including the validity of this Consent Order. |
III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS
WHEREAS, Carolyn Settzo, through her execution of this Consent Order, acknowledges the following allegations of the Commissioner without admitting or denying them:
| At various times between 2009 and 2014, Carolyn Settzo violated Section 36b-6(c) of the Act by advising others, for compensation, as to the value of securities or as to the advisability of investing in, purchasing or selling securities, at a time when Carolyn Settzo was not registered as an investment adviser under the Act. |
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Carolyn Settzo an opportunity for a hearing;
AND WHEREAS, Carolyn Settzo acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below.
IV. CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Carolyn Settzo, through her execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing on her the following sanctions:
| 1. | Carolyn Settzo shall refrain from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, either directly or through any organizational or other device; and |
| 2. | No later than the date this Consent Order is entered by the Commissioner, Carolyn Settzo shall remit to the Department by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, the sum of five thousand dollars ($5,000), three thousand eight hundred dollars ($3,800) of which shall constitute an administrative fine and one thousand two hundred dollars ($1,200) of which shall represent payment for past due investment adviser registration fees. |
V. CONSENT ORDER
NOW THEREFORE,
the Commissioner enters the following:| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Carolyn Settzo based upon a violation of this Consent Order if the Commissioner determines that compliance with the terms herein is not being observed; |
| 3. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action based upon evidence of which the Division was unaware on the date hereof relating to a violation of the Act or any regulation or order under the Act; and |
| 4. | This Consent Order shall become final when entered. |
| So ordered at Hartford, Connecticut | ____/s/___________________ | |
| this 16th day of October 2015. | Jorge L. Perez | |
| Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Carolyn Settzo, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I consent to the entry of this Consent Order.
| _____/s/_____ | |
| Carolyn Settzo |
State of: CT
County of: Fairfield
On this the 13 day of October 2015, before me, the undersigned officer, personally appeared Carolyn Settzo, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that she executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
| ____/s/____________________________ |
| Notary Public |
| Date Commission Expires: October 31, 2020 |