Initiated By
CONNECTICUT
Allegations
9/16/13: ORDER TO CEASE AND DESIST AND NOTICE OF INTENT TO FINE ISSUED AGAINST CHRISTIAN MEISSENN NOW OR FORMERLY OF 453 NORTH MAIN STREET, SUFFIELD, CT. FROM 2001 TO 2003, MEISSENN HEADED GIT SECURITIES CORP. (CRD # 103735), A BROKERAGE FIRM THAT WAS CONTROLLED BY RESCON TECHNOLOGY CORPORATION ("RESCON"). ALSO NAMED: 1) GABRIEL ABENSUR OF 17/6 BELL LANE, GIBRALTAR; 2) JOHN MORGAN OF 183 MADISON AVE., SUITE 1719, NEW YORK, NY; 3) SPEED OF THOUGHT TRADING CORPORATION ("SPEED"); 4) RESCON; 5) NORTHEAST DEVELOPMENT CORP. ("NORTHEAST"); 6) HYBRID AUTOMOTIVE TECHNOLOGIES, INC. ("HYBRID"); 7) IRONCLAD INVESTMENTS, LLC ("IRONCLAD"), AN ENTITY WHICH HELD ITSELF OUT AS A HIGH PERFORMANCE ARBITRAGED FOREX FUND; 8) DAMIAN SETH DELGADO, WHO HAD PREVIOUSLY BEEN SENTENCED IN NJ TO A TERM OF IMPRISONMENT FOR SECURITIES FRAUD; AND 9) THE AFRICAN DIAMOND COMPANY, INC. (N/K/A COAL CORPORATION) ("AFRICAN"). ALTHOUGH AFRICAN HELD ITSELF OUT AS HAVING A BUSINESS ADDRESS AT 1028 BLVD., SUITE 242, WEST HARTFORD, CT, THE ACTION ALLEGED THAT THAT ADDRESS WAS ACTUALLY A MAIL DROP ESTABLISHED BY RESPONDENT ABENSUR. MEISSENN WAS ALLEGEDLY THE PRESIDENT OF AFRICAN, SPEED, RESCON AND NORTHEAST. RESPONDENT MEISSENN ALSO FORMED HYBRID AND, TOGETHER WITH DELGADO, CO-MANAGED IRONCLAD. THE ACTION ALSO ALLEGED THAT MEISSENN AND/OR ABENSUR HAD A FINANCIAL INTEREST OR SERVED AS AN OFFICER OR DIRECTOR OF SPEED, RESCON, NORTHEAST, AFRICAN, IRONCLAD AND HYBRID (THE "MEISSENN/ABENSUR ENTITIES"), AND THAT THE SECURITIES ISSUED BY THE MEISSENN/ABENSUR ENTITIES WERE LOW PRICED, THINLY TRADED SECURITIES (PENNY STOCKS). PER THE ACTION, OVER A SPAN OF 8 YEARS, STARTING IN 2001, RESPONDENTS, WITH THE EXCEPTION OF DELGADO, SOLD UNREGISTERED SECURITIES OF THE MEISSENN/ABENSUR ENTITIES IN OR FROM CT IN VIOLATION OF SECTION 36B-16 OF THE CONNECTICUT UNIFORM SECURITIES ACT, AND THAT MORGAN TRANSACTED BUSINESS AS AN UNREGISTERED AGENT OF ISSUER. THE ACTION ALSO ALLEGED THAT MEISSENN AND ABENSUR VIOLATED THE ANTIFRAUD PROVISIONS BY INDUCING INVESTORS WHO HAD PREVIOUSLY BOUGHT SECURITIES ISSUED BY ONE OR MORE OF THE MEISSENN/ABENSUR ENTITIES TO EXCHANGE THEIR SHARES AT A PREMIUM FOR DIFFERENT MEISSENN/ABENSUR ENTITY SECURITIES WHILE PROMISING PROFITABILITY BUT NOT DISCLOSING CRITICAL INFORMATION ON THE ENTITY, THE INVOLVEMENT OF MEISSENN AND ABENSUR IN THE ENTITY'S OPERATIONS AND THE IMPACT OF DILUTION. THE ACTION ALSO ALLEGED THAT MEISSENN VIOLATED SECTION 36B-23 OF THE ACT BY MISREPRESENTING IN SWORN TESTIMONY BEFORE DIVISION INVESTIGATORS THAT MEISSENN HAD NO RELATIONSHIP WITH AFRICAN. THE ACTION ALSO ALLEGED THAT MEISSENN AND ABENSUR, WITH THE MATERIAL ASSISTANCE OF DELGADO, ENGAGED IN A SECOND FRAUDULENT SCHEME WHICH INVOLVED DEFRAUDING INVESTORS OF TERRA ENERGY RESOURCES, LTD. ("TERRA"), A DELAWARE CORPORATION QUOTED ON OTC LINK LLC. THE ACTION ALLEGED THAT ABENSUR FORMED SUNRISE GROUP INVESTMENTS CORP. IN GIBRALTAR, BULL INVESTMENTS LIMITED IN GIBRALTAR, MONROSA INVESTMENTS LTD. IN THE REPUBLIC OF SEYCHELLES, ROMESTAR INTERNATIONAL INC. IN GIBRALTAR AND RAVEN INVESTMENTS PLC IN SEYCHELLES, THEN OPENED U.S. BROKERAGE ACCOUNTS FOR THESE COMPANIES AT VARIOUS BROKER-DEALERS, PROVIDING THE COMPANIES' ADDRESS AS 2842 MAIN STREET, SUITE 185, GLASTONBURY, CT. THROUGH THE COMPANIES, ABENSUR THEN BOUGHT AND SOLD TERRA SECURITIES MULTIPLE TIMES ON THE SAME DAY IN THE COMPANIES' VARIOUS BROKERAGE ACCOUNTS, WHICH CREATED THE FALSE APPEARANCE OF INFLATED AND EXAGGERATED TRADING ACTIVITY IN THE SHARES OF TERRA. ABENSUR DEPOSITED THE SALES PROCEEDS INTO IRONCLAD'S BANK ACCOUNT, WHICH WAS CONTROLLED BY MEISSENN, AND DIRECTED MEISSENN AND DELGADO TO WRITE CHECKS FROM THAT ACCOUNT FOR NONBUSINESS EXPENSES. THE ACTION ALSO ALLEGED THAT ABENSUR AND/OR MEISSENN FURTHER PERPETUATED A SCHEME TO DEFRAUD INVESTORS BY CIRCULATING, FROM THE GLASTONBURY ADDRESS, MISLEADING LITERATURE REGARDING TERRA TO INVESTORS IN CONNECTICUT AND OTHER STATES IN AN EFFORT TO CREATE INTEREST IN TERRA.
Resolution
Consent
Bar
Bar (Temporary/Time Limited)
Registration Capacities Affected
BROKER-DEALER, AGENT, INVESTMENT ADVISER, INVESTMENT ADVISER AGENT
Duration
10 YEARS
Start Date
12/3/2013
End Date
12/3/2023
Sanctions
Cease and Desist
Sanctions
Restitution
Amount
$14,000.00
Sanctions
CONSENT ORDER ENTERED 12/3/13 RELATING TO DOCKET NOS. CO-13-7795-S AND CO-13-7839-S. THE CONSENT ORDER BARRED RESPONDENT MEISSENN FOR TEN YEARS FROM 1) DIRECTLY OR INDIRECTLY SOLICITING OR ACCEPTING FUNDS FOR INVESTMENT PURPOSES FOR PUBLIC OR PRIVATE INVESTORS IN OR FROM CONNECTICUT; 2) TRANSACTING BUSINESS IN OR FROM THE STATE AS A BROKER-DEALER, AGENT, INVESTMENT ADVISER OR INVESTMENT ADVISER AGENT; AND 3) ENGAGING IN ANY OTHER ACTIVITY THAT WOULD REQUIRE REGISTRATION UNDER THE STATE'S SECURITIES LAWS. THE CONSENT ORDER ALSO DIRECTED RESPONDENT MEISSENN TO CEASE AND DESIST FROM VIOLATIVE CONDUCT AND TO PAY $14,000 IN PARTIAL RESTITUTION TO AFFECTED CONNECTICUT INVESTORS BY DECEMBER 27, 2013. THE CONSENT ORDER INDICATED THAT RESPONDENT MEISSENN HAD PROVIDED DOCUMENTATION EVIDENCING HIS FINANCIAL INABILITY TO PAY FULL RESTITUTION OR THE AMOUNT OF THE FINE THAT OTHERWISE COULD HAVE BEEN ASSESSED AGAINST HIM.
