Thomas David Renison (CRD No. 1863759)
On January 15, 2021, the Banking Commissioner (“Commissioner”) entered a
Consent Order (No. CRF-19-8426-S) with respect to
Thomas David Renison of South Glastonbury, Connecticut.
Renison had been the subject of a January 9, 2020, Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-19-8426-S). Also named in the January 9, 2020, action were Renison’s son, Thomas James Renison, also of South Glastonbury, Connecticut, and ARO Equity, LLC of 41 Pine Street, #17, Peabody, Massachusetts 01960. ARO Equity, LLC was a self-described “private investment fund” investing in small to medium business ventures. Among those ventures was a now-defunct Massachusetts electronics manufacturing company, a construction company and a healthcare company. Renison was an undisclosed principal of ARO Equity, LLC.
The action alleged that from approximately August 2015, ARO Equity, LLC and Renison violated Section 36b-16 of the Connecticut Uniform Securities Act (“Act”) by offering and selling over $5.8 million of unregistered “fixed rate promissory notes” purportedly paying returns ranging from 8% to 12% to investors. The action also alleged that Renison transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.
In addition, the action alleged that ARO Equity, LLC and Renison violated the antifraud provisions in Section 36b-4(a) of the Act by failing to disclose, among other things: (i) that, contrary to respondents’ representations concerning the use of investment proceeds, investor monies were really being used to pay off earlier investors as well as ARO Equity, LLC’s business expenses and Renison’s personal expenses; (ii) the specific risk factors related to the investments; (iii) Renison’s prior disciplinary history; and (iv) the precise business and operating history of ARO Equity, LLC and its affiliates, including financial information on the respondents.
The action sought the entry of a permanent Order to Cease and Desist and a fine against all respondents and a restitutionary order against respondents ARO Equity, LLC and Renison.
The January 15, 2021, Consent Order acknowledged that on October 6, 2020, Renison plead guilty to one count of Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. Section 1349, and two counts of Filing a False Tax Return, in violation of 26 U.S.C. Section 7206(1) (United States v. Renison, Case No. 20-cr-10109-GAO). In connection with his guilty plea, Renison agreed to recommend that the Court order restitution to the Internal Revenue Service in an amount not less than $151,810, that the Court will upon acceptance of Renison’s guilty plea enter an order of forfeiture of assets, including without limitation, $526,120, which is equal to the amount of proceeds Renison derived from the offenses, and incarceration and a fine within the Guidelines sentencing range as calculated by the Court.
Renison is scheduled for sentencing on February 11, 2021, and the Court is also expected to order restitution of over $5 million to compensate the victims of ARO Equity, LLC’s and Renison’s fraudulent activities.
Renison has provided documentation to the Securities and Business Investments Division (“Division”) of the State of Connecticut Department of Banking demonstrating that he is financially unable to pay either restitution to the affected investors or the administrative fine that might otherwise have been imposed against him pursuant to Section 36b-27 of the Act as a result of an administrative proceeding or as a term of the Consent Order.
The Consent Order directed Renison to cease and desist from directly or indirectly violating the provisions of the Act and Regulations of Connecticut State Agencies promulgated under the Act.
Based on the contents of the financial affidavit submitted to the Division, the imposition of any fine that otherwise would have been imposed against him pursuant to Section 36b-27 of the Act shall be temporarily stayed for three years from the date this Consent Order is entered by the Commissioner. After the completion of three years from the date this Consent Order is entered, if the Division determines that Renison is still unable to pay an administrative fine, such fine will be waived.
The Consent Order also permanently barred Renison from: (i) transacting business in or from Connecticut as an agent, broker-dealer, broker-dealer agent, investment adviser or investment adviser agent as such terms are defined in the Act, and notwithstanding any definitional exclusion that might otherwise be available under the Act; (ii) maintaining a direct or indirect ownership interest in a broker-dealer or investment adviser registered or required to be registered in Connecticut; and (iii) acting in any other capacity which requires a license or registration under laws administered by the Commissioner.