Florida Office of Financial Regulation

Conducted investment advisory business from offices within this state without the benefit of lawful registration.

Order

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$46,875.00

Unbeknownst to Mr. Hearns his prior broker dealer did not properly register him in Florida. On 1/11/2017, the Office of Financial Regulation entered a Final Order adopting the Stipulation and Consent Agreement in the matter James Edward Hearns. Mr. Hearns agrees to and consents to the entry of the findings by the Office. The Office found that James Edward Hearns engaged in investment advisory business from offices within this state without the benefit of lawful registration in the state of Florida pursuant to section 517.12(4), F. S. Mr. Hearns agreed to cease and desist from all present and future violations of Chapter 517, F. S. and the administrative rules thereunder; and to pay an administrative fine in the amount of $46,875. The Office agreed to approve James Edward Hearns' applications as an associated person (RA) with Summit Financial Group, Inc., effective 1/11/2017.

NORTH CAROLINA

ORDER TO SHOW CAUSE WAS ISSUED JULY, 1985 BASED ON THE FINDING THAT THE RESPONDENT HAD BEEN CENSURED AND FINED BY THE NASD.

Decision

Revocation/Expulsion/Denial

RESPONDENT FAILED TO RESPOND AND AN ORDER OF DEFAULT WAS ISSUED AND THE RESPONDENT'S REGISTRATION DENIED.

MY BROKER DEALER'S LICENSING CLERK FAILED TO NOTIFY ME OR A B/D PRINCIPAL OF THE STATE'S REQUEST FOR ADDITIONAL INFORMATION. AS A RESULT, I DID NOT HAVE AN OPPORTUNITY TO PROVIDE ADDITIONAL INFORMATION OR TO REQUEST A HEARING PRIOR TO THEIR DENIAL OF MY APPLICATION.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Consent

Monetary/Fine

$25,000.00

Censure

IN 1980, I ASKED BY BROKER DEALER FOR GUIDANCE IN FORMING LIMITED PARTNERSHIPS COMPRISED OF MY ACCOUNTING CLIENTS FOR THE PURPOSE OF INVESTING IN TAX SHELTER PROGRAMS AS A SINGLE CLIENT. MY BROKER DEALER'S LAW FIRM GAVE ME WRITTEN ADVICE AS TO HOW TO PROCEED. I FOLLOWED THEIR WRITTEN ADVICE IN THE FORMATION, FUNDING, AND OPERATION OF THE INVESTMENT PARTNERSHIPS. THE NASD ALLEGED THAT THIS VIOLATED SEC RULE 146 AND SECTION 5 OF THE SECURITIES ACT. I SETTLED THIS MATTER IN ORDER TO AVOID THE EXPENSES OF LITIGATION, WHICH WERE ESTIMATED TO EXCEED THE $25,000 SETTLEMENT AGREEMENT.