The allegations read: The securities and exchange commission ("commission") 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 michael j. Conte ("respondent"). The commission finds that on september 29, 2022, a final judgment was entered by consent against conte, permanently enjoining him from future violations of section 17(a)(2) and 17(a)(3) of the securities act of 1933 and sections 206(1) and 206(2) of the advisers act, in the civil action entitled securities and exchange commission v. Fusion analytics investment partners, llc, civil action number 0:21-cv-61721, in the united states district court for the southern district of florida. The commission's complaint alleged that from 2010 to 2016, conte, through two entities he controlled-faip and faip's holding company, fusion analytics holdings, llc ("fusion holdings")-raised approximately $1.4 million for faip through the offer and sale of promissory notes to 10 individual retail investors and advisory clients, most of whom were retired and elderly, without disclosing material facts regarding faip's declining financial condition. Fusion holdings defaulted on most of the notes, and conte renegotiated many of the notes without fully disclosing faip's continuing financial decline.
