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OFFICE OF SECURITIES
121 STATE HOUSE STATION
AUGUSTA, ME† 04333
††††††††††† This Consent Agreement is entered
into between the Office of Securities and Hawthorne Investment Management, LLC
("HIM"), a limited liability company organized pursuant to the laws
††††††††††† WHEREAS the parties agree as follows:
1. At all relevant times, it has been unlawful in Maine for a person to act in Maine as an investment adviser unless licensed or exempt from licensing pursuant to †the Revised Maine Securities Act, 32 M.R.S.A. ß 10303(1).
On or about
On or about
HIM voluntarily withdrew from licensure as an investment
On or about
On or about
HIM has represented to the Office of Securities that its
unlicensed activity was inadvertent and the result of a mistake, and that no
8. Both parties desire an expeditious resolution of this matter.
††††††††††† NOW, THEREFORE, without trial or adjudication of any issue of fact or law, and without HIM admitting or denying that its conduct violated the Revised Maine Securities Act, it is agreed that:
The Office of Securities shall review HIM's
2. The Office of Securities shall not deny HIM's license application based on the conduct alleged in the Notice of Intent to Issue an Order to Deny a License and resolved by the execution of this Consent Agreement, nor shall the Office of Securities deny the license application based solely upon its review of materials already in its possession.
Once licensed, HIM shall comply with all licensing and other
legal requirements governing persons acting as investment advisors in
4. For the first two years after the execution of this Consent Agreement, HIM shall:
a.†††††††† Provide to the Office of Securities, for each investment advisory client that HIM obtains, a copy of the signed investment advisory contract within one week of its execution, along with an affidavit stating that HIM has delivered Part 2 of Form ADV to the client and that HIM has otherwise complied with all statutory and regulatory requirements with respect to that client;
b.†††††††† Not solicit investment advisory clients through advertising to the public; and
c.†††††††† Make a good faith, reasonable effort to locate and retain an independent compliance officer at its own expense.† If HIM retains such a person, HIM shall notify the Office of Securities of that person's name, address, and telephone number.† The compliance officer shall perform a review of HIM's books and records on no less than a quarterly basis for a period of at least two years from the date of retention.† The compliance officer shall provide the Office of Securities with an annual, detailed report of these reviews.
5. If HIM has not retained a compliance officer in accordance with the above paragraph by the end of the two-year period, HIM shall provide the Office of Securities with an affidavit stating the reasons therefor, including a detailed accounting of HIM's efforts to locate and retain such a person.
6. The proceedings referenced in the Notice of Intent to Issue an Order to Deny a License are dismissed by execution of this Consent Agreement.
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† David A. Conary
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Christine A. Bruenn
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Securities Administrator
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Bonnie E. Russell
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Supervisor of Enforcement
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Michael W. Atleson
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Staff Attorney
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† (licensed in NY and MA, pending in ME)