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STATE OF
OFFICE OF SECURITIES
121 STATE
HOUSE STATION
_____________________________________
)
IN RE: Downeast Financial Group, Michael J. )
CONSENT AGREEMENT
Poulin, and Lena-Jo Hartley
)
No. 06-063-CAG
_____________________________________)
This Agreement is entered into between the State of Maine Office
of Securities (“the Office”), Downeast Financial Group (“DFG”), CRD # 118606,
Michael J. Poulin (“Poulin”), CRD # 711767, and Lena-Jo Hartley (“Hartley”), CRD
# 2905105.
WHEREAS, the parties agree as follows:
1.
DFG
is a corporation formed under the laws of
2.
Since
December 1989, DFG has been licensed as an investment adviser with the Office
pursuant to 32 M.R.S.A. §§10303 and16403.
3.
At
all times relevant to this matter, Poulin and Hartley have been investment adviser
representatives of DFG.
4.
Since
September 30, 2002, it has been unlawful for a person to transact business as
an investment adviser representative in
5.
Since
September 30, 2002, it has been unlawful under 32 M.R.S.A. §§ 10303(3) and 16403(4)
for a licensed investment adviser to employ or contract with an individual as
its investment adviser representative in
6.
It
is the Office’s position that Poulin and Hartley have transacted business as investment
adviser representatives in Maine without being licensed or exempt from licensing
in violation of 32 M.R.S.A. §§ 10303 and 16404.
7.
It
is the Office’s position that DFG employed or contracted with Poulin and Hartley
as investment adviser representatives without them having been licensed as investment
adviser representatives in Maine, in violation of 32 M.R.S.A. §§ 10303(3) and
16403(4).
8.
DFG
has represented to the Office that it was not Respondents’ intention to violate
the licensing provisions and that the firm only recently became aware of the violations
when the Office, during its examination of DFG, brought the matter to its attention.
9.
All
parties desire an expeditious resolution of this matter.
NOW, THEREFORE, without trial or adjudication of
any issue of fact or law, and without Respondents admitting or denying that their
conduct violated the Revised Maine Securities Act or the Maine Uniform Securities
Act, it is agreed that:
1.
Respondents
will comply with all licensing and other legal requirements governing persons
acting as investment advisers and investment adviser representatives in the State
of Maine at all times from the date hereof;
2.
In
lieu of the Office seeking the imposition of a penalty for the allegations contained
herein, DFG will pay the sum of $3,000 to the Office upon the Respondents’ execution
of this Agreement, via a check made payable to “Treasurer, State of Maine”; and
3.
The
Office will not take further action against the Respondents based solely upon
the unlicensed status of the Poulin and Hartley during the period preceding and
including the date of execution of this agreement, PROVIDED, however, that this paragraph applies only to the unlicensed
activity previously disclosed to the Office by DFG.
Downeast Financial Group
BY:
May
3, 2006
s/Michael J. Poulin
Date
Michael J. Poulin
President / Treasurer
May
3, 2006
s/Lena-Jo Hartley
Date
Lena-Jo Hartley
May
4, 2006
s/Michael J. Colleran
Date
Michael J. Colleran
Securities Administrator
Reviewed by:
May
4, 2006
s/Michael W. Atleson
Date
Michael W. Atleson
Staff Attorney
Presented by:
May
4, 2006
s/Jacqueline M. Drouin
Date
Jacqueline M. Drouin
Investigator / Examiner