The allegations read: On february 21, 2020, the banking commissioner issued a notice of intent to deny registration as broker-dealer, notice of intent to revoke registration as a broker-dealer agent and notice of right to hearing (docket no. Ndr-20-14445-s) with respect to nyppex, llc, an applicant for broker-dealer registration, and laurence geoffrey allen, managing member of the firm. Laurence allen had previously been registered as a broker-dealer agent in connecticut, but that registration expired on december 31, 2019 for failure to renew. Under connecticut law, the commissioner has the authority to initiate revocation proceedings within one year following a registration's expiration for nonrenewal. The action alleged that on february 4, 2020, in a proceeding brought by the attorney general of the state of new york, the supreme court of the state of new york entered a preliminary injunction enjoining nyppex, llc, allen and others from, inter alia, engaging in fraudulent, deceptive and illegal acts in conjunction with limited partnership investments (people v. Allen, laurence g., no. 2378/2019 (supreme ct. N.y. Cnty. 2019). The connecticut action further alleged that the preliminary injunction supported the initiation of connecticut proceedings to deny the firm's broker-dealer registration and revoke allen's agent registration under the connecticut uniform securities act. Action was later amended in december 2022 - see detail below - to change relief requested from revocation to denial in light of registration status change.
