Connecticut

On September 11, 2019, the Banking Commissioner entered a Consent Order (No. CO-19-8437-S) with respect to Prophet Financial Planning, LLC of 3324 Main Street, 2nd Floor, Bridgeport, Connecticut 06606, and Andrew Seafus Prophet, managing member of the firm. The Consent Order alleged that, from at least 2014 forward, Andrew Prophet, individually and on behalf of Prophet Financial Planning, LLC violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities in the form of promissory notes to investors. The Consent Order acknowledged that Andrew Prophet provided the agency with evidence that 1) he had offered approximately $374,000 in rescission to those investors whose promissory notes had not yet matured and who had not yet been repaid; and 2) only one investor accepted that rescission offer. The Consent Order also acknowledged that Andrew Prophet furnished the department with documentation that he had remitted, under the oversight of his legal counsel 1) $141,250 to those investors whose promissory notes had matured; and 2) $28,500 to cover the balance owed to the one investor who had accepted his rescission offer and whose note had not yet matured.

Consent

Cease and Desist

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

$10,000.00

The Consent Order directed Andrew Seafus Prophet and Prophet Financial Planning, LLC to cease and desist from securities regulatory violations and, for a five year period, to retain and consult with legal counsel prior to issuing, offering or selling securities in or from Connecticut. In addition, the Consent Order fined Andrew Seafus Prophet $10,000.

FINRA

NASD RULES 2110 AND 2330(A): RESPONDENT ANDREW S. PROPHET'S CUSTOMER MISTAKENLY RECEIVED A $1200 CHECK FROM HER VARIABLE ANNUITY COMPANY AND GAVE THE CHECK TO PROPHET SO THAT HE COULD RETURN THE CHECK TO THE COMPANY. INSTEAD, WITHOUT AUTHORIZATION FROM HIS CUSTOMER, PROPHET ENDORSED THE CHECK AND DEPOSITED IT INTO HIS BANK ACCOUNT, USING THE FUNDS FOR HIS OWN USE AND BENEFIT.

Acceptance, Waiver & Consent(AWC)

Bar

WITHOUT ADMITTING OR DENYING THE FINDINGS, PROPHET CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

CONNECTICUT

ON OCTOBER 10, 2008, THE BANKING COMMISSIONER ENTERED A CONSENT ORDER CONDITIONING THE REGISTRATIONS OF ANDREW PROPHET AS A BROKER-DEALER AGENT OF SUMMIT BROKERAGE SERVICES, INC. (CRD NUMBER 33432) AND AS AN INVESTMENT ADVISER AGENT OF SUMMIT FINANCIAL GROUP, INC. (CRD NUMBER 109485). THE CONSENT ORDER ALLEGED THAT, WHILE PREVIOUSLY ASSOCIATED WITH ANOTHER SECURITIES BROKERAGE FIRM AS AN AGENT, PROPHET DEPOSITED INTO HIS PERSONAL ACCOUNT AN ANNUITY CHECK RETURNED BY A CONNECTICUT CLIENT TO PROPHET BECAUSE THE CHECK WAS IN AN ERRONEOUS AMOUNT. THE CONSENT ORDER ALSO ALLEGED THAT, ON AT LEAST TWO SEPARATE OCCASIONS, PROPHET ACCEPTED GRATUITIES FROM CLIENTS IN EXCESS OF $100 IN CONTRAVENTION OF FINRA RULE 3060.

Consent

AS A PRECONDITION TO REGISTRATION, THE CONSENT ORDER RESTRICTED PROPHET'S SECURITIES SALES AND ADVISORY ACTIVITIES FOR TWO YEARS TO EXCHANGE-LISTED SECURITIES, INVESTMENT COMPANY SECURITIES AND GOVERNMENTAL SECURITIES. THE CONSENT ORDER ALSO PROHIBITED PROPHET FOR TWO YEARS FROM HAVING CUSTODY OF CLIENT FUNDS OR SECURITIES, AND HOLDING OR EXERCISING DISCRETIONARY TRADING AUTHORITY AND/OR A POWER OF ATTORNEY WITH RESPECT TO ANY CUSTOMER ACCOUNT. IN ADDITION, THE CONSENT ORDER ALSO PRESCRIBED CERTAIN SUPERVISORY CONTROLS OVER PROPHET'S ACTIVITIES, AND REQUIRED THAT THE AFFECTED FIRMS PROVIDE THE DEPARTMENT WITH QUARTERLY REPORTS FOR TWO YEARS REGARDING ANY COMPLAINTS, ACTIONS OR PROCEEDINGS INVOLVING PROPHET.

SEE RESPONSE TO ITEM 13.B.

ANDREW PROPHET BECAME REGISTERED AS A BROKER-DEALER AGENT OF SUMMIT BROKERAGE SERVICES, INC. ON OCTOBER 10, 2008, AND AS AN INVESTMENT ADVISER AGENT OF SUMMIT FINANCIAL GROUP, INC. THE SAME DAY. *****BROKER STATEMENT: THIS INCIDENT INVOLVED A CLOSE FRIEND; I HANDLED THE RETURN OF THE CHECK WRONG. THE CLIENT IN QUESTION WROTE A LETTER TO THE FIRM STATED THE MONEY WAS RETURNED AND SHE ACCEPTED MY APOLOGY. I HAD A DEATH AND MY FAMILY AND TOOK SOME TIME OFF WORK, WHICH DELAYED THE RETURN OF THE CHECK IN A TIMELY MANNER. I HAVE ACCEPTED THESE PRE-CONDITIONS TO AVOID COSTLY LITIGATION. THE TWO GRATUITY CHECKS IN QUESTION - ONE WAS DONATED TO THE CLIENTS CHURCH AND THE OTHER WAS RETURNED TO THE CLIENT AND PART USED FOR BRANCH EXPENSES.