Connecticut Banking Commissioner Jorge Perez has fined a Florida-based precious metals dealer and two of its officers a combined $300,000 following allegations they mishandled an elderly Connecticut investor’s money.
The action brought by the department alleges that Blackstone Wealth Solutions CEO Paul Brian Kopman and President Matthew Craig Hults convinced an elderly Connecticut resident to invest, then transferred more than $300,000 of the investor’s money out of a securities brokerage account to a business account under the control of Blackstone Wealth Solutions LLC, according to a Connecticut Department of Banking release.
When the investor confronted Kopman, he claimed to have invested the funds in silver, but was unable to provide proof, according to the release. Kopman and Hults allegedly failed to return the investor’s money, according to the department.
In May, the now-inactive company and two executives were ordered to cease-and-desist and make restitution, according to the department. The company and its officers were also notified in May of the department’s intent to fine and their right to a hearing, according to the release.
The respondents did not request a hearing on the state orders, leading them to become permanent, according to the department. Perez found each of the three respondents violated antifraud law and engaged in dishonest or unethical practices as defined by state law.
The commissioner also determined Blackstone Wealth Management LLC. transacted as an unregistered investment advisor and that Kopman and Hults transacted as unregistered investment advisor agents in violation of state law, according to the release.
