ILLINOIS

THE NOTICE OF HEARING ALLEGED THAT MICHAEL FRANCIS EVANS VIOLATED SECTION 8E(1)(N) OF THE ILLINOIS SECURITIES LAW OF 1953 FOR HAVING A CONSENT ORDER ENTERED AGAINST HIM BY THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION, DIVISION OF INSURANCE, ALLEGING VIOLATIONS OF SECTION 5/500-70(A)(10) OF THE ILLINOIS INSURANCE CODE. IN THAT ORDER MR. EVANS WAS REQUIRED, AMONG OTHER THINGS, TO CORRECT THE ISSUED COMPLAINED ABOUT. THE SECURITIES DEPARTMENT'S MATTER WAS RESOLVED BY CONSENT ORDER IN WHICH MR. EVANS WAS CENSURED, AND NO FINES OR COSTS WERE IMPOSED.

Consent

Censure

NONE

N/A

THIS IS THE SAME MATTER UNDER REVIEW BY FINRA (SEE EXAM #2007008128901). PLEASE NOTE RR OBTAINED SIGNATURES FROM THE OWNER OF THE POLICIES WHO HAD FULL CONTROL OVER THESE POLICIES.

FINRA

NASD RULE 2110 - FRANCIS EVANS SIGNED THE NAMES OF ANNUITANTS ON FIXED ANNUITY APPLICATIONS WITHOUT THEIR KNOWLEDGE OR CONSENT AND SUBMITTED THE APPLICATIONS FOR PROCESSING TO THE ISSUER AFTER WHICH THE POLICIES WERE ISSUED. EVANS DELIVERED THE POLICIES TO THE PUBLIC CUSTOMER WHO PURCHASED THE ANNUITIES, DIRECTED HER TO SIGN AN AMENDMENT PAGE FOR EACH OF THE ANNUITIES AND THEN SIGNED THE ANNUITANTS' NAMES ON THE AMENDMENT PAGES, AGAIN WITHOUT THEIR KNOWLEDGE OR CONSENT.

Decision

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

$5,000.00

Monetary Penalty other than Fines

$2,542.20

Suspension

ANY CAPACITY

SIX MONTHS

6/15/2009

12/14/2009

HEARING PANEL DECISION RENDERED APRIL 21, 2009 WHEREIN EVANS IS FINED $5,000, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR SIX MONTHS AND ORDERED TO PAY $2,542.20 IN HEARING COSTS. IF THIS DECISION BECOMES FINRA'S FINAL DISCIPLINARY ACTION, THE SUSPENSION SHALL BEGIN AT THE OPENING OF BUSINESS ON JUNE 15, 2009, AND END AT THE CLOSE OF BUSINESS ON DECEMBER 14, 2009. DECISION IS FINAL JUNE 9, 2009.

#14D(1)(E) AND #14E(5) FILED IN ERROR

STATE OF ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION - DIVISION OF INSURANCE

REGISTRANT DID NOT ADMIT TO VIOLATIONS OF THE ILLINOIS INSURANCE CODE BUT AGREED TO A STIPULATION AND CONSENT ORDER THAT INDICATED THE FOLLOWING: ON OCTOBER 23, 2006 LICENSEE SOLICITED TWO NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION DEFERRED FIXED ANNUITY APPLICATIONS TO A CONSUMER. THE CONSUMER WAS THE OWNER OF THESE TWO ANNUITIES AND HER CHILDREN WERE TO BE THE ANNUITANTS ON EACH ANNUITY. LICENSEE ADMITTED THAT HE SIGNED BOTH OF THE CHILDREN'S NAMES, AS ANNUITANTS TO THE TWO APPLICATIONS.

Stipulation and Consent

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

$2,000.00

REGISTRANT WAS ORDERED TO SECURE AND WITNESS THE GENUINE SIGNATURE OF THE ANNUITANT, OWNER, AND INSURED IN THEIR PRESENCE ON ALL APPLICATIONS FOR INSURANCE/ANNUITIES AND ANY OTHER INSURANCE RELATED DOCUMENTS.

WITH REGARD TO PURCHASES OF FIXED ANNUITIES IN OCTOBER AND NOVEMBER 2006, CUSTOMER ALLEGES THAT THE EXPLANATIONS TO MOVE FUNDS FROM HER VARIABLE ANNUITIES TO THE FIXED ANNUITIES WERE CONFUSING AND THAT THE PROGRAM DID NOT TURN OUT TO BE AS DESCRIBED. CUSTOMER FURTHER ALLEGES THAT HER CHILDREN'S SIGNATURES ON THE FIXED ANNUITY APPLICATIONS WERE NOT GENUINE.

$21,128.70

$21,128.70

THE $21,128.70 REPRESENTS SURRENDER CHARGES WAIVED.