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                                                              STATE OF MAINE

                                                       OFFICE OF SECURITIES

                                                   121 STATE HOUSE STATION

                                                       AUGUSTA, MAINE 04333

 

________________________________

                                                                      )

IN THE MATTER OF:                                 )

                                                                      )                       CONSENT AGREEMENT 

Liberty Investment Advisors                       )

And                                                               )                              No. 06-079-CAG          

Richard Liberty                                            )

                                                                      )

_______________________________)

 

This Agreement is entered into by the State of Maine Office of Securities (the “Office"), Liberty Investment Advisors (“LIA”) (CRD#121349) and Richard A. Liberty (“Liberty”) (CRD#844673).

 

            WHEREAS, the parties agree as follows:

 

1.                  LIA is a corporation formed under the laws of Maine with a principal place of business at 23 North Raymond Road, Gray, Maine 04039.

 

2.                  LIA has been licensed in Maine as an investment adviser since at least August 16, 1994.

 

3.                  Since at least September of 2002, Liberty has been an investment adviser representative of LIA in Maine.

 

4.                  However, at no time has Liberty been licensed as an investment adviser representative or exempt from licensing in Maine.

 

5.                  Since September 30, 2002, it has been unlawful for a person to transact business in Maine as an investment adviser representative unless licensed or exempt from licensing.  32 M.R.S.A. §§ 10303(1), 16404(1), 16702(3).

 

6.                  Also since September 30, 2002, it has been unlawful for an investment adviser to employ or associate with an individual as an investment adviser representative in Maine unless the individual is licensed or exempt from licensing.  32 M.R.S.A. §§ 10303(4), 16403(4), 16702(3).

 

7.                  It is the Office’s position that Liberty violated the Revised Maine Securities Act and the Maine Uniform Securities Act by transacting business as an investment adviser representative in Maine without being licensed or exempt from licensing.

 

8.                  Furthermore, it is the Office’s position that LIA violated the Revised Maine Securities Act and the Maine Uniform Securities Act by employing or associating with Liberty without properly licensing him as an investment adviser representative.

 

9.                  LIA and Liberty have represented to the Office that they did not intend to violate either the Revised Maine Securities Act or the Maine Uniform Securities Act.

 

10.             All parties desire an expeditious resolution to this matter.

 

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

 

1.      LIA and Liberty will comply with all licensing and other legal requirements governing 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 conduct addressed herein, LIA and Liberty, jointly and severally, will pay the sum of $1,500.00, payable to “Treasurer, State of Maine,” upon LIA’s and Liberty’s execution of this Agreement; and

 

3.      The Office will not take further action against LIA and Liberty based solely upon the unlicensed status of Liberty 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 LIA and Liberty.

 

 

                                                                       

                                                                        By: Liberty Investment Advisors

                                   

July 20, 2006                                                  s/Richard A. Liberty                        

Date                                                                Richard A. Liberty

President

 

 

                                                                       

July 20, 2006                                                  s/Richard A. Liberty                        

Date                                                                Richard A. Liberty

 

 

 

July 20, 2006                                                  s/Michael J. Colleran                     

Date                                                                Michael J. Colleran

                                                                        Securities Administrator

 

 

 

 

July 20, 2006                                                  s/Bonnie E. Russell                                   

Date                                                                Bonnie E. Russell

                                                                        Assistant Securities Administrator

 

 

                                                                        Submitted by

 

 

July 20, 2006                                                  s/Willis P. Smedberg                                   

Date                                                                Willis P. Smedberg

                                                                        Investigator/Examiner