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                                                              STATE OF MAINE

                                                        OFFICE OF SECURITIES

                                                    121 STATE HOUSE STATION

                                                       AUGUSTA, MAINE 04333




IN THE MATTER OF:                                   )


Morgan Financial Advisors, Inc.                  )

(CRD #107868)                                            )                       CONSENT AGREEMENT  


                                                                        )                              No. 04-077-CAG

_______________________________  )




            This Agreement is entered into by the State of Maine Office of Securities ("Securities") and Morgan Financial Advisors, Inc., (“Morgan”) (CRD #107868) a federally registered investment adviser with a principal place of business at 76 Summer Street, Manchester, Massachusetts, 01944.


            WHEREAS, the parties agree as follows:


1.                  Pursuant to 32 M.R.S.A. § 10305-A, a federally registered investment adviser may not act in Maine as an investment adviser unless it files with the administrator, for notice purposes only, such documents filed with the United States Securities and Exchange Commission as the administrator may by rule or order require, together with the fee that would otherwise be applicable pursuant to section 10306 under the Revised Maine Securities Act (hereinafter, “notice filing”);


2.                  Securities has reviewed Morgan’s licensing record and has found no record evidencing that Morgan has ever been notice filed with the administrator;


3.                  According to the records provided by Morgan, it had more than five clients in Maine from September 2000 to January 2001 and thus was required to be notice filed pursuant to 32 M.R.S.A. § 10305-A;


4.                  It is Securities’ position that Morgan has acted as an investment adviser in Maine without being notice filed or exempt from the notice filing requirements; and


5.                  All parties desire an expeditious resolution of this matter.



NOW THEREFORE, without trial or adjudication of any issue of fact or law, and without Morgan admitting or denying that its conduct violated the Revised Maine Securities Act, it is agreed that:


            Morgan will comply with all licensing and other legal requirements governing persons acting as investment advisers in the State of Maine at all times from the date hereof;


            In lieu of Securities seeking the imposition of a penalty for the allegations contained herein, Morgan shall pay the sum of $3,574.77 to Securities upon Morgan’s execution of this Agreement; and


            Securities will not take further action against Morgan based upon the unlicensed status of Morgan during the period preceding and including the date of execution of the Agreement.



                                                                        Morgan Financial Advisors, Inc.



5/5/2004                                                         /s/ David J. Ellrich

Date                                                                Signature


                                                                        David J. Ellrich

(printed name)


                                                                        Its  President



5/5/2004                                                         /s/ David J. Ellrich

Date                                                                David J. Ellrich



7/8/2004                                                         /s/ Christine A. Bruenn

Date                                                                Christine A. Bruenn

                                                                        Securities Administrator

Reviewed by:


7/13/2004                                                      /s/ Christina V. Breen

Date                                                                Christina V. Breen

                                                                        Assistant Securities Administrator


Submitted by:


7/8/2004                                                         /s/ Christian D. Van Dyck

Date                                                                Christian D. Van Dyck