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ANDRE PAUL YOUNG * * * * * * * * * * * * * * * * * * |
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CONSENT ORDER DOCKET NO. CO-14-8081-S |
I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;
WHEREAS, Andre Paul Young (“Respondent”) is an individual whose address last known to the Commissioner is 9 Maryanne Lane, Stamford, Connecticut 06905;
WHEREAS, Respondent was registered as a broker-dealer agent under the Act at various times from August 12, 1997 to April 29, 2013, and as an investment adviser agent under the Act at various times from January 12, 1998 to April 29, 2013;
WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36b-26(a) of the Act into the activities of Respondent to determine if he had violated, was violating or was about to violate provisions of the Act or Regulations (“Investigation”);
WHEREAS, on November 26, 2014, the Commissioner, acting pursuant to Section 36b-27 of the Act, issued an Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) (Docket No. CD-14-8081-S) against Respondent, which Notice is incorporated by reference herein;
WHEREAS, on December 9, 2014, Respondent requested a hearing on the matters alleged in the Notice;
WHEREAS, on December 19, 2014 the Commissioner issued a Notification of Hearing and Designation of Hearing Officer, wherein the Commissioner scheduled the hearing on the matters alleged in the Notice for January 14, 2015 and appointed Department of Banking Attorney Stacey Serrano as the Hearing Officer on the matters alleged in the Notice;
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 Section 36b-27 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the General Statutes of Connecticut;
WHEREAS, Section 36b-27(f) of the Act provides, in relevant part, that “[a]ny time after the issuance of an order . . . provided for in subsection (a) . . . the commissioner may accept an agreement by any respondent named in such order . . . to enter into a written consent order in lieu of an adjudicative hearing”;
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, Respondent and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings;
WHEREAS, the Commissioner finds that the entry 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;
WHEREAS, Respondent has demonstrated to the Division that he is financially unable to pay any fine that might have been a term of a Consent Order entered pursuant to Section 36b-27(f) of the Act;
WHEREAS, Respondent expressly consents to the Commissioner’s jurisdiction under the Act and to the terms of this Consent Order;
AND WHEREAS, Young, through his execution of this Consent Order, specifically assures the Commissioner that none of the violations alleged in the Notice or in this Consent Order shall occur in the future.
II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS
WHEREAS, Young, through his 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 Section 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 himself of Section 36b-27 of the Act and Section 4-177c(a) of the General Statutes of Connecticut; |
| 3. | To present his position in a hearing in which he 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, Respondent, through his execution of this Consent Order, acknowledges the following allegations of the Commissioner, and does not admit or deny these allegations but admits sufficient evidence exists for the Commissioner to issue a permanent order to cease and desist against him:
| 1) | Respondent engaged in dishonest or unethical business practices within the meaning of Sections 36b-31-15d(a)(3) and 36b-31-15c(a)(7) of the Regulations by making a de facto loan to an investment advisory client while Respondent was registered as an investment adviser agent under the Act; and |
| 2) | Respondent engaged in dishonest or unethical business practices within the meaning of Section 36b-31-15b(c) of the Regulations by making improper use of a brokerage customer’s funds while Respondent was registered as a broker-dealer agent under the Act; |
WHEREAS, the foregoing conduct would support administrative proceedings against Respondent under Section 36b-27(a) of the Act;
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondent an opportunity for a hearing;
AND WHEREAS, Respondent 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, Respondent, through his execution of this Consent Order, consents to the Commissioner entering an order imposing the following sanctions:
| 1. | For a period of five (5) years commencing on the date this Consent Order is entered, Respondent shall be BARRED from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, as such terms are defined in the Act, and notwithstanding any definitional exclusion that might otherwise be available under the Act; and |
| 2. | Respondent shall cease and desist from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order promulgated under the Act, either directly or through any person, organization or other device. |
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 Respondent based upon a violation of this Consent Order or the matters underlying its entry if the Commissioner determines that compliance with the terms herein is not being observed; |
| 3. | After three (3) years have elapsed from the date this Consent Order is entered, Respondent may, for good cause shown, request that the Commissioner relieve him from the bar contained in Paragraph 1 of Section IV of this Consent Order by filing a written application with the Division Director setting forth the basis for the request. The Division Director shall review the request and make a decision based on the Director's review. The Division Director may, in his/her sole discretion, grant, deny or condition the relief sought pursuant to this paragraph; |
| 4. | Nothing in this Consent Order shall be construed as limiting the Commissioner’s ability to take enforcement action against Respondent 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 |
| 5. | This Consent Order shall become final when entered. |
| So ordered at Hartford, Connecticut, | ____/s/___________________ | |
| this 16 day of January 2015. | Bruce Adams | |
| Acting Banking Commissioner |
CONSENT TO ENTRY OF ORDER
I, Andre Paul Young, 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/________ |
| Andre Paul Young |
State of: [Blank in Original]
County of: [Blank in Original]
On this the 12 day of January 2015, before me, Jorge Valdes Dominiguez, the undersigned officer, personally appeared Andre Paul Young, 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: Oct. 31, 2016 |