This was shocking, Boiler room raises target on BTWS to $50
Price Target Elevated to $50 From $20 as First Providence UpgradesPrice Per Share for BitWise Designs
NEW YORK, Dec. 13 /PRNewswire/ -- Today, First Providence Financial Group raised its price target to $50 per share for BitWise Designs, (Nasdaq: BTWS).
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STATE OF CONNECTICUT DEPARTMENT OF BANKING
* * * * * * * * * * * * * * * NOTICE OF INTENT TO REVOKE
* REGISTRATION AS BROKER-DEALERIN THE MATTER OF: *
* ORDER SUMMARILY SUSPENDING
FIRST PROVIDENCE FINANCIAL * REGISTRATION AS BROKER-DEALERGROUP, LLC *
CRD NO. 39469 * NOTICE OF INTENT TO FINE * * AND *
("Respondent") * NOTICE OF RIGHT TO HEARING *
* * * * * * * * * * * * * * * DOCKET NO. SS-5482-S I. PRELIMINARY STATEMENT
1. The Banking Commissioner (the "Commissioner") is charged
with the administration of Chapter 672a of the Connecticut
General Statutes, the Connecticut Uniform Securities Act (the
"Act") and the Regulations promulgated thereunder (Sections
36b-31-1 to 36b-31-33, inclusive, of the Regulations of
Connecticut State Agencies) (the "Regulations").
2. Pursuant to Section 36b-26(a) of the Act the Commissioner,
through the Securities and Business Investments Division (the
"Division") of the Department of Banking, has conducted an
investigation into the activities of Respondent to determine
if it has violated, is violating, or is about to violate
provisions of the Act or Regulations. Section 36b-26(a) of the Act provides:
The commissioner, in his discretion, may, subject to
the provisions of the Freedom of Information Act . . .
(1) Make such public or private investigations within
or outside of this state as he deems necessary to
determine whether any person has violated or is about
to violate any provision of sections 36b-2 to 36b-33,
inclusive, or any regulation or order thereunder, or
to aid in the enforcement of said sections in the
prescribing of rules and forms thereunder . . . .
3. As a result of the investigation conducted by the
Division, the Commissioner brings this administrative action
pursuant to Section 36b-15 of the Act and Section 4-182(c) of
the Connecticut General Statutes to revoke and summarily suspend
the broker-dealer registration of Respondent, as set forth herein.
Section 36b-15(a) states, in pertinent part:
The commissioner may by order . . . revoke any
registration . . . if he finds (1) that the order is in
the public interest and (2) that . . . in the case of a
broker-dealer . . . any partner, officer, or director,
any person occupying a similar status or performing
similar functions, or any person directly or indirectly
controlling the broker-dealer . . . (B) has wilfully
violated or wilfully failed to comply with any provision
of sections 36b-2 to 36b-33, inclusive, . . . ; (H) has
engaged in dishonest or unethical practices in the
securities . . . business . . . ; [or] (L) in connection
with any investigation conducted pursuant to section
36b-26 or any examination under subsection (d) of
section 36b-14 . . . has withheld or concealed material
information from, or refused to furnish material
information to the commissioner. Section 36b-15(c), states, in pertinent part:
(c) The commissioner may by order summarily . . . suspend
registration pending final determination of any proceeding
under this section. Upon the entry of the order, the
commissioner shall promptly notify the . . . registrant
. . . that it has been entered and of the reasons therefor
and that within fifteen days after the receipt of a
written request the matter will be set down for hearing.
If no hearing is requested and none is ordered by the
commissioner, the order will remain in effect until it
is modified or vacated by the commissioner. If a hearing
is requested or ordered, the commissioner, after notice
of and opportunity for hearing, may modify or vacate the
order or extend it until final determination.
Section 4-182(c) of the Connecticut General Statutes states:
(c) No revocation, suspension, annulment or withdrawal
of any license is lawful unless, prior to the institution
of agency proceedings, the agency gave notice by mail to
the licensee of facts or conduct which warrant the
intended action, and the licensee was given an opportunity
to show compliance with all lawful requirements for the
retention of the license. If the agency finds that public
health, safety or welfare imperatively requires emergency
action, and incorporates a finding to that effect in its
order, summary suspension of a license may be ordered
pending proceedings for revocation or other action.
These proceedings shall be promptly instituted and determined.
4. As a result of the investigation conducted by the Division,
the Commissioner has the authority to impose a fine on Respondent
pursuant to Section 36b-27(d) of the Act. Section 36b-27(d) states,
in pertinent part: (1) Whenever the commissioner finds as the result of an
investigation that any person or persons have violated
any of the provisions of sections 36b-2 to 36b-33,
inclusive, or any regulation . . . adopted or issued under
said sections, the commissioner may send a notice to
such person or persons by registered mail, return receipt
requested. Any such notice shall include: (A) A reference
to the title, chapter, regulation, rule or order alleged
to have been violated; (B) a short and plain statement of
the matter asserted or charged; (C) the maximum fine that
may be imposed for such violation; and (D) the time and
place for the hearing. Such hearing shall be fixed for
a date not earlier than fourteen days after the notice is mailed.
(2) The commissioner shall hold a hearing upon the charges
made unless such person or persons fail to appear at the
hearing. Said hearing shall be held in accordance with
the provisions of chapter 54. After the hearing if the
commissioner finds that the person or persons have violated
any of the provisions of sections 36b-2 to 36b-33, inclusive,
or any regulation . . . adopted or issued under said
sections, the commissioner may, in his discretion and in
addition to any other remedy authorized by said sections,
order that a fine not exceeding ten thousand dollars per
violation be imposed upon such person or persons. If such
person or persons fail to appear at the hearing, the
commissioner may, as the facts require, order that a
fine not exceeding ten thousand dollars per violation be
imposed upon such person or persons. The commissioner
shall send a copy of any order issued pursuant to this
subsection by registered mail, return receipt requested,
to any person or persons named in such order. II. RESPONDENT
5. Respondent is a limited liability company with its principal
place of business at 90 Broad Street, 10th Floor, New York, New York 10004.
III. STATEMENT OF FACTS
6. From at least March of 1996 to the present, Respondent has
been registered in Connecticut under the Act as a broker-dealer.
7. On September 22 and 23, 1999, the Commissioner, through
employees of the Division, conducted an investigation of Respondent
pursuant to Section 36b-26(a), and an examination of Respondent's
books and records pursuant to Section 36b-14(d) of the Act.
8. During the course of the investigation and examination
referred to in paragraph 7, Respondent, through its Chief Executive
Officer Kenneth Klein, concealed material information from the
Commissioner by deleting approximately 20 files from its computers
after employees of the Division requested that it maintain the
integrity of the information on its computers during the course of
the investigation and examination.
9. From at least September 1999 to the present, Respondent
employed at least two individuals as "cold callers," who, inter
alia, pre-qualified customers as to financial status and investment history.
10. The "cold callers" referred to in paragraph 9 were not, at
all relevant times hereto, registered with the NASD as
representatives of the firm.
11. The "cold callers" referred to in paragraph 9 were not, at
all relevant times hereto, registered in Connecticut as agents of
the firm, nor were they associated persons.
12. The National Association of Securities Dealers, Inc.
("NASD") is a self-regulatory organization registered with the
Securities and Exchange Commission pursuant to Section 15A of the
Securities Exchange Act of 1934.
IV. STATUTORY BASES FOR REVOCATION AND SUMMARY SUSPENSION
OF BROKER-DEALER REGISTRATION AND FINE
a. Concealing of Material Information From the Commissioner
13. Paragraphs 1 through 12 are incorporated and made a part
hereof as if more fully set forth herein.
14. Respondent's concealing of material information from the
Commissioner, as more fully described in paragraph 8, forms a
basis for the revocation and summary suspension of Respondent's
registration as a broker-dealer pursuant to Sections
36b-15(a)(2)(L) and 36b-15(c) of the Act.
b. Dishonest or Unethical Practices in the Securities Business-
Unregistered Cold Callers
15. Paragraphs 1 through 14 are incorporated and made a part
hereof as if set forth herein.
16. Respondent's employment of at least two individuals as
"cold callers" who were not registered with the NASD, as more
fully described in paragraphs 9 and 10, constitutes a dishonest
or unethical practice in the securities business within the
meaning of Section 36b-31-15a(b) of the Regulations, in that it
is conduct proscribed by NASD Membership and Registration Rule
1031(a). Such a dishonest or unethical practice in the securities
business by Respondent forms a basis for the revocation and
summary suspension of Respondent's registration as a broker-dealer
pursuant to Section 36b-15(a)(2)(H) and 36b-15(c) of the Act.
c. Wilful Violation of Section 36b-6(b) of the Act -
Employment of an Unregistered Agent by a Broker-Dealer
17. Paragraphs 1 through 16, inclusive, are incorporated and
made a part hereof as if more fully set forth herein.
18. Respondent's employment of at least two unregistered
broker-dealer agents, as more fully described in paragraphs 9
and 11, constitutes a wilful violation of Section 36b-6(b) of
the Act, and such wilful violation forms a basis for the
revocation and summary suspension of Respondent's registration
as a broker-dealer pursuant to Sections 36b-15(a)(2)(B) and
36b-15(c) of the Act, and forms a basis for the imposition of
a fine against Respondent under 36b-27(d)(1) of the Act.
V. NOTICE OF INTENT TO REVOKE BROKER-DEALER REGISTRATION
WHEREAS the Commissioner has reason to believe that, pursuant
to Section 36b-15(a) of the Act, grounds exist for revoking
Respondent's broker-dealer registration in the State of Connecticut;
AND WHEREAS the Commissioner believes that the issuance of
an order revoking such registration would be in the public
interest and consistent with the purposes fairly intended by
the policy and provisions of the Act;
AND WHEREAS Section 36b-15(f) of the Act states that "[n]o
order may be entered under this section except as provided in
subsection (c) of this section without (1) appropriate prior
notice to the . . . registrant . . . , (2) opportunity for
hearing, and (3) written findings of fact and conclusions of law."
NOW THEREFORE, notice is hereby given to Respondent that
its broker-dealer registration shall be revoked, subject to
his right to a hearing on the allegations set forth above.
A hearing will be granted to Respondent if a written request
for a hearing is received by the Department of Banking, Legal
Division, 260 Constitution Plaza, Hartford, Connecticut
06103-1800 within fourteen (14) days following the its receipt
of this Notice. The enclosed Appearance Form must be filled
out and returned with the written request for a hearing and
mailed to the above address. If Respondent will not be
represented by an attorney at the hearing, please fill out the
Appearance Form as "pro se."
The hearing will be held in accordance with the provisions
of Chapter 54 of the Connecticut General Statutes. At such
hearing, Respondent will have the right to appear and present
evidence, rebuttal evidence and argument on all issues of fact
and law to be considered by the Commissioner. Once a written
request for a hearing is received, the Commissioner shall
issue a notice of hearing at least fourteen (14) days prior
to the hearing in accordance with Section 4-177 of the
Connecticut General Statutes and Section 36-1-17(c) of the
Regulations of Connecticut State Agencies. VI. NOTICE OF INTENT TO FINE
WHEREAS the Commissioner finds as a result of an
investigation by the Securities and Business Investments
Division that Respondent has wilfully violated Sections 36b-6(b) of the Act;
AND WHEREAS the Commissioner believes that the imposition
of a fine upon Respondent would be in the public interest and
consistent with the purposes fairly intended by the policy and
provisions of the Act.
NOW THEREFORE, notice is hereby given to Respondent that
the Commissioner intends to impose a fine upon Respondent not
to exceed ten thousand dollars ($10,000) per violation. A
hearing in accordance with Section 36b-27(d)(2) of the Act and
Chapter 54 of the Connecticut General Statutes will be held at
10 a.m. on February 3, 1999 at the Department of Banking, 260
Constitution Plaza, Hartford, Connecticut. At the hearing,
Respondent will have the right to appear and present evidence,
rebuttal evidence and argument on all issues of fact and law
relating to the allegations stated herein. If Respondent fails
to appear at such hearing, the Commissioner may order that a
maximum fine of twenty thousand dollars ($20,000) be imposed upon Respondent.
VII. ORDER SUMMARILY SUSPENDING BROKER-DEALER REGISTRATION
WHEREAS the Commissioner has initiated proceedings to revoke
Respondent's registration as a broker-dealer under Section 36b-15(a) of the Act;
AND WHEREAS the Commissioner finds, pursuant to Section 4-182(c)
of the Connecticut General Statutes, that public welfare
imperatively requires emergency action;
NOW THEREFORE IT IS ORDERED, pursuant to Section 36b-15(c) of
the Act and Section 4-182(c) of the Connecticut General Statutes,
that Respondent's registration as a broker-dealer in Connecticut
be and is hereby SUMMARILY SUSPENDED pending final determination
of the proceedings to revoke Respondent's registration. Pursuant
to Section 36b-15(c) of the Act, this Order Summarily Suspending
Registration will be set down for a hearing within fifteen (15)
days after the receipt of a written request from Respondent.
A hearing will be granted to Respondent if a written request
for a hearing is received by the Department of Banking, Legal
Division, 260 Constitution Plaza, Hartford, Connecticut
06103-1800 within fourteen (14) days following its receipt of
this Order. The enclosed Appearance Form must be filled out and
returned with the written request for a hearing and mailed to
the above address. If Respondent will not be represented by
an attorney at the hearing, please fill out the Appearance Form as "pro se."
The hearing will be held in accordance with the provisions
of Chapter 54 of the Connecticut General Statutes. At such
hearing, Respondent will have the right to appear and present
evidence, rebuttal evidence and argument on all issues of fact
and law to be considered by the Commissioner. Once a written
request for a hearing is received, the Commissioner shall issue
a notice of hearing at least fourteen (14) days prior to the
hearing in accordance with Section 4-177 of the Connecticut
General Statutes and Section 36-1-17(c) of the Regulations of
Connecticut State Agencies. If no hearing is requested on this
Order and none is ordered by the Commissioner, this Order will
remain in effect until it is modified or vacated by the
Commissioner. If a hearing is requested or ordered, the
Commissioner, after notice and opportunity for hearing, may modify
or vacate this Order or extend it until final determination of
the proceeding to revoke Respondent's registration. _______/s/__________
John P. Burke Banking CommissionerDated at Hartford, Connecticut
this 14th day of December 1999. CERTIFICATION
I hereby certify that on this 14th day of December 1999, the
foregoing Notice of Intent to Revoke Registration as Broker-Dealer,
Order Summarily Suspending Registration as Broker-Dealer,
Notice of Intent to Fine and Notice of Right to Hearing, was sent
by registered mail, return receipt requested to Respondent,
First Providence Financial Group, LLC, 90 Broad Street, 10th
Floor, New York, New York 10004, registered mail no. R364328942.
______/s/_________ Philip Dukes Principal Attorney
* * * * * * * * * * * * * * * NOTICE OF INTENT TO REVOKE
* REGISTRATION AS BROKER-DEALERIN THE MATTER OF: *
* ORDER SUMMARILY SUSPENDING
FIRST PROVIDENCE FINANCIAL * REGISTRATION AS BROKER-DEALERGROUP, LLC *
CRD NO. 39469 * NOTICE OF INTENT TO FINE * * AND *
("Respondent") * NOTICE OF RIGHT TO HEARING *
* * * * * * * * * * * * * * * DOCKET NO. SS-5482-S APPEARANCE
Please enter the appearance of: ____________________________
(Attorney/Pro Se Respondent) ____________________________
(Mailing Address) ____________________________
____________________________
Telephone Number: ___________________
The above-named individual is appearing in the above-entitled case for:
( ) The Respondent( ) All Respondents
( ) The following Respondent(s) only ______________________
_____________________________________________________________
Signed _____________________________ Date: ______________
(Attorney/Pro Se Respondent) |
