Skip Maine state header navigation
OFFICE OF SECURITIES
121 STATE HOUSE STATION
AUGUSTA, ME 04333
NOTICE OF INTENT TO REVOKE A
SALES REPRESENTATIVE LICENSE
AND BAR HIM FROM ASSOCIATION
AND TO IMPOSE A CIVIL PENALTY
1. Gary L. Hobbs ("Hobbs") (CRD # 1200083) is an individual who has been licensed in Maine as a sales representative since at least 1991. His last known address is 88 Shepley Street, Auburn, Maine 04210.
2. From July 1991 to May 2002, Hobbs worked as a sales representative for Livada Securities, Inc. ("Livada"), which changed its name to Bangor Securities, Inc. ("Bangor Securities") in or around 2002.
3. Richard Boulet ("Boulet") was a client of Hobbs at Livada and Bangor Securities. Hobbs serviced Boulet's accounts and effected purchases and sales of securities in the accounts.
4. In the late 1990s, Hobbs solicited several cash loans from Boulet totaling approximately $46,000. On or about March 8, 2001, Hobbs and Boulet signed a handwritten agreement on Livada stationery which memorialized the amount that Hobbs owed to Boulet and set out an interest rate and payment schedule. To date, most of the loans remain unpaid.
5. Hobbs has also solicited loans from one or more other clients while at Livada and Bangor Securities.
6. By letters dated August 29 and October 24, 2003, the Office of Securities sought a written statement from Hobbs responding to Boulet's allegations. By a subpoena dated October 24, 2003, the Office of Securities sought documents from Hobbs relating to those allegations. On or about December 16, 2003, the Office of Securities received a letter from Hobbs' attorney stating that Hobbs would not provide the requested statement or documents based on "his privilege against self-incrimination."
8. Pursuant to 32 M.R.S.A. § 10313(1)(G), the Securities Administrator may, after notice and opportunity for hearing, issue an order revoking any license and barring a licensee from any association with an issuer, licensed broker-dealer, or investment adviser, if she finds that the order is in the public interest and that the licensee has engaged in any unlawful, unethical or dishonest conduct or practice in the securities business.
9. Pursuant to 32 M.R.S.A. §10602(1)(E) and 10 M.R.S.A. § 8003(5), the Administrator may, after notice and opportunity for hearing, by order, impose a civil penalty that may not exceed $1,500 for a single violation, if the Administrator reasonably believes that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of the Act or any applicable rule or condition of licensure.
10. Each loan that Hobbs solicited from his clients may constitute a separate violation for purposes of determining the total civil penalty to be imposed on Hobbs.
Pursuant to 32 M.R.S.A. § 10708(6), notice is hereby given that the Securities Administrator intends to issue an Order to Revoke a Sales Representative License and Bar Him from Association and to Impose a Civil Penalty against Hobbs pursuant to 32 M.R.S.A. §§ 10313(1)(G) and 10602(1)(E) and 10 M.R.S.A. § 8003(5).
Pursuant to 32 M.R.S.A. § 10708(2), interested parties have thirty (30) calendar days from the entry of this Notice of Intent to file a written request for a hearing.
Christine A. Bruenn
Bonnie E. Russell
Assistant Securities Administrator
Michael W. Atleson