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OFFICE OF SECURITIES
121 STATE HOUSE STATION
AUGUSTA, ME 04333
NOTICE OF INTENT TO IMPOSE A CIVIL
PENALTY, CENSURE AND ISSUE A CEASE AND DESIST ORDER
AGAINST RESPONDENTS, OR TO BAR JAMES L. PARIS 02-095
NOTICE OF INTENT
TO IMPOSE A CIVIL PENALTY, CENSURE AND ISSUE A
CEASE AND DESIST ORDER AGAINST RESPONDENTS, OR TO BAR JAMES L. PARIS
James L. Paris Financial Services, Inc., (“JLPFS”) is an
investment adviser incorporated and registered in
2. James L. Paris (“James Paris”)(CRD # 1722114), whose last known address is 913 Sea Duck Drive, Daytona Beach, Florida 32119, is an investment adviser representative of JLPFS and is, and has been at all relevant times, the sole owner and president of JLPFS.
3. Carmen G. Paris (“Carmen Paris”) (CRD # 2671001), whose last known address is 149 Knights Hollow Drive, Apopka, Florida 32712, has been the vice-president of JLPFS since May 1998.
4. According to the records filed by JLPFS, James Paris and Carmen Paris have been “control persons” of JLPFS since 1991 and 1998 respectively.
In or about December 1995, a
In or about March 1996, another
James Paris and JLPFS solicited personal loans from the
8. The original term of these loans was for two years at the end of which period the principal and accumulated interest of 17.9% per year, were to be repaid. Particulars of the loans are as follows:
James Paris and JLPFS later solicited and obtained an
agreement from the two
James Paris and JLPFS solicited these extensions at a time
when JLPFS was losing substantial amounts of monies without disclosing this
fact to the two
Although the extended periods for these loans have now
elapsed, James Paris and JLPFS have failed to repay any monies to either
12. As a condition of licensure pursuant to 32 M.R.S.A § 10313 (1)(G), investment advisers and investment adviser representatives may not engage in any unlawful, unethical or dishonest conduct or practice in the securities business.
13. James Paris and JLPFS have engaged in unlawful, unethical or dishonest conduct or practices in the securities business by:
soliciting loans from the two
· soliciting extensions of those loans;
· failing to repay any portion of those loans; and
making unsuitable investment recommendations to the two
14. Pursuant to 32 M.R.S.A. § 10602(3), in an administrative action brought by the Administrator for a violation of any provision of the Revised Maine Securities Act (“the Act”), every person who is an officer or director of, or who directly or indirectly controls, another person liable for a violation of the Act, is liable to the same extent as that other person.
15. James Paris and Carmen Paris, as control persons of JLPFS, are liable for the conduct of JLPFS and its employees.
16. Pursuant to 32 M.R.S.A. § 10313(1)(G), the Administrator may, after notice and opportunity for hearing, by order, censure or bar any applicant or licensee if the Administrator finds that the order is in the public interest and that the applicant or licensee has engaged in any unlawful, unethical or dishonest conduct or practice in the securities business.
17. 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.
18. Pursuant to 32 M.R.S.A. § 10602, if the Administrator reasonably believes that any person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of any provision of the Act, the Administrator may issue a cease and desist order if the Administrator determines that the public interest or the protection of investors so requires.
19. For the reasons stated above, the Administrator reasonably believes that James Paris and JLPFS have engaged, are engaging or are about to engage in acts or practices constituting violations of the Revised Maine Securities Act.
Pursuant to 32 M.R.S.A. §10708, notice is hereby given that the Administrator intends to issue an Order: (1) to censure Respondents; (2) to impose a civil penalty on each Respondent of at least $6,000; (3) to require Respondents to cease and desist from further violations of the Revised Maine Securities Act; and/or (4) to bar James Paris from association with any issuer, licensed broker-dealer or investment adviser.
Pursuant to 32 M.R.S.A. § 10708(2), Respondents have thirty (30) calendar days from the entry of this Notice of Intent to file a written request for a hearing.
Date: August 4, 2003______________ Christine A. Bruenn_______________
Christine A. Bruenn
Bonnie E. Russell
Assistant Securities Administrator
Christian D. Van Dyck