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STATE OF MAINE

OFFICE OF SECURITIES
121 STATE HOUSE STATION

AUGUSTA, MAINE  04333-0121

 

 

IN THE MATTER OF:

 

Harvest Financial Corporation

 
                                                                                      

                                                                                       CONSENT AGREEMENT

                                                                                              No. 06-077-CAG       

 

 

 

 

This Agreement is entered into by the State of Maine Office of Securities (the "Office") and Harvest Financial Corporation (“HFC”) (CRD# 8733), a broker-dealer with its principal place of business located at 17th FL West-Two Gateway Center, Pittsburgh, Pennsylvania 15222.  

 

WHEREAS, the parties agree as follows:

 

1.            At all relevant times, it has been unlawful for a person to transact business in Maine as a broker-dealer unless licensed or exempt from licensing under the Revised Maine Securities Act (the “Revised Act”) or the Maine Uniform Securities Act (the “Uniform Act”) 32 M.R.S.A. §§10301,16401.  

 

2.            HFC applied to be licensed as a broker-dealer in the State of Maine in February of 2006.

 

3.            In response to inquiries from the Office, HFC informed the Office in April of 2006 that it had three Maine clients.  HFC further disclosed that the firm had effected one hundred thirty-one (131) securities transactions in Maine between July 2001 and March 2006.

 

4.            HFC was not licensed as a broker-dealer in Maine when these transactions were effected.  It is the Office’s position that HFC has transacted business as a broker-dealer in Maine without being licensed as a broker-dealer or exempt from licensing.

 

5.            HFC has represented to the Office that it was not the firm’s intention to violate the Revised Act or the Uniform Act.

 

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

 

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

 

1.            HFC will comply with all licensing and other legal requirements governing persons acting as securities broker-dealers 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 allegations contained herein, HFC will pay the sum of $3,000 to the Office upon HFC’s execution of this Agreement; and

 

3.            The Office will not take further action against HFC based solely upon its unlicensed status during the period preceding and including the date of execution of this Agreement, PROVIDED, however, that this paragraph applies only to the transactions previously disclosed to the Office by HFC.

 

 

 

 

August 8, 2006                                             s/Frank D. Ruscetti, President                  

Date                                                                Frank D Ruscetti, President

                                                                        Harvest Financial Corporation

                                                           

 

 

August 10, 2006                                           s/Michael J. Colleran                                 

Date                                                                Michael J. Colleran

                                                                        Securities Administrator

 

Reviewed by:

 

 

 

August 10, 2006                                           s/Bonnie E. Russell                                               

Date                                                                Bonnie E. Russell

                                                                        Assistant Securities Administrator

 

Presented by:

 

 

 

August 10, 2006                                           s/Billie-Jo A. Rodgers                                 

Date                                                                Billie-Jo A. Rodgers

                                                                        Licensing Coordinator