UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The SEC deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against James Albert Pettit ("Respondent"). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings and the findings contained herein, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities and Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"). On the basis of this Order and Respondent's Offer, the Commission finds that on September 7, 2022, the Banking Commissioner for the Connecticut Department of Banking entered a Final Consent Order ("Connecticut Order") in an administrative action entitled In the Matter of James Albert Pettit CRD No. 733916, Docket No. NDCDF-17-8218-S. The order made permanent an Order to Cease and Desist issued May 15, 2017, and, for a period of ten years, barred Pettit from transacting business in or from Connecticut as an agent, broker-dealer, broker-dealer agent, investment adviser or investment adviser agent; maintaining a direct or indirect ownership interest in a broker-dealer or an investment adviser registered in Connecticut; and acting in any other capacity requiring a license or registration under laws administered by Connecticut's Banking Commissioner. The order additionally stayed a $25,000 fine pending Pettit's ability to pay, to be waived after three years of inability to pay. The Connecticut Order was the result of an investigation conducted by the Securities and Business Investments Division of the Connecticut Department of Banking which resulted in a notice and order dated May 15, 2017, entitled Notice of Intent to Deny Registrations as a Broker-Dealer Agent and an Investment Adviser Agent, Order to Cease and Desist, Notice of Intent to Fine, and Notice of Right to Hearing, Docket No. NDCDF-17-8218-S. The notice and order alleged, among other things, that Pettit had improperly withdrawn money from a client account as a personal loan to himself, improperly borrowed money from two clients to pay personal bills, and engaged in self-dealing by improperly exercising power of attorney over an elderly client without approval and paying himself from her funds both before and after her death.

Order

Bar (Permanent)

Any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

12/30/2022

Participating in any offering of a penny stock

Indefinite

12/30/2022

FINRA

Respondent Pettit failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

3/26/2018

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Pettit is suspended on March 26, 2018, for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

FINRA

Respondent Pettit failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

3/5/2018

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated November 28, 2017, and December 22, 2017, respectively, on March 5, 2018, Pettit is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

Connecticut

On May 15, 2017, the Banking Commissioner issued a Notice of Intent to Deny Registrations as a Broker-dealer Agent and an Investment Adviser Agent, Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. NDCDF-17-8218-S) with respect to James Albert Pettit. The respondent was previously associated with Janney Montgomery Scott, LLC as a broker-dealer agent and an investment adviser agent. The action alleged that the respondent engaged in certain improprieties rising to the level of dishonest or unethical practices in the securities business. These included 1) borrowing money from an account carried for a brokerage customer without the customer's prior consent and without notice to Janney Montgomery Scott, LLC; 2) borrowing money from an advisory client of Janney Montgomery Scott, LLC; and 3) engaging in outside business activity involving a firm client absent notice to his employing firm. The action also alleged that the respondent engaged in self-dealing in conjunction with a power of attorney he held over the account of an elderly client, since deceased. The respondent allegedly failed to obtain firm approval prior to accepting the power of attorney and wrote checks to himself as remuneration, notwithstanding that the power of attorney did not provide for compensation. Following the client's death, the respondent allegedly paid himself $69,000 for acting as executor of the client's estate. Ultimately, the probate court denied all but $10,000 of the executor's fees. The action also alleged that the respondent violated Section 36b-23 of the Connecticut Uniform Securities Act by failing to provide the agency with accurate information concerning accounts over which he had signatory authority. In addition, the respondent allegedly violated Section 36b-31-14e of the Regulations under the Act by failing to amend his registration filings to disclose the existence of several tax liens.

Consent

Bar (Temporary/Time Limited)

Broker-dealer, agent, investment adviser, investment adviser agent

10 Years

9/7/2022

9/7/2022

Cease and Desist

Denial

The September 7, 2022 Consent Order resolved the allegations in the May 15, 2017 action without a hearing. The Consent Order rendered the May 15, 2017 Order to Cease and Desist permanent; denied Pettit's registrations as a broker-dealer agent and an investment adviser agent; and barred Pettit for ten years from transacting business in or from Connecticut as an agent, broker-dealer, investment adviser or investment adviser agent, maintaining a direct or indirect ownership interest in a broker-dealer or an investment adviser registered or required to be registered in Connecticut and acting in any other capacity requiring a license or registration with the Commissioner. Acknowledging that Pettit provided written documentation that he was unable to pay the $25,000 administrative fine that otherwise would have been imposed against him, the Consent Order temporarily stayed imposition of the fine for three years. Following expiration of the three year period, if Pettit remained unable to pay the fine, the fine would be waived.