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STATE
OF
OFFICE
OF SECURITIES
121
STATE HOUSE STATION
________________________________
)
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.
By:
5/5/2004 /s/
David J. Ellrich
Date Signature
David
J. Ellrich
(printed
name)
Its
President
5/5/2004 /s/
David J. Ellrich
Date
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
Investigator/Examiner