Consent Agreement and Order: Commonwealth of Pennsylvania v. Wolff Asset Management and Elizabeth Dorothea Wolff

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES COMMONWEALTH OF PENNSYLVANIA: DEPARTME:NT OF BANKING AND SECURI'l'JES, BUREAU OF SECUIUTIES COMPLIANCE AND EXAMINATIONS v. ELIZAIIE'l'H DOROTHEA WOLFF d/b/n WOLFF ASSET MANAGEMENT nnd ELIZABETH DOROTHEA WOLFF, lndlvldunlly Iloel<ct No.: 23-0035 (SEC-OSC) CONSENT AGREEMENT AND ORIIER 207.H!O'I -9 p;\ 11: I The Commonwealth of Peunsylvnuln, nctiug through the Depnrtmeut of Bnukiug nnd Securities C<Depart1nent")1 Bureau of Securities Co1npliance and Exmuinatlons (' 1 Bureau") 1 investigated the business prnctices of Wolff Asset Managetnent LLC ( 11WAM11) and Elizabeth DorotheR Wolff ("Wolff'), Based on the results of ils invesligntlon, the Bureau has concluded thnt W AM nnd Wolff operated in violotlon ofthePennsylvonia Securities Act of 1972, 70 P.S. § 1-101 el seq. r•1972 Act"). WAM and Wolff, in lieu of litigation, and without ndmiltlng or denying the nllegotions herein, and intending lo be legally bound, hereby agree to the terms of this Consent Agreen1ent and Order (''Order"). BACKGROUND L The Departtuent is the Conunon,ve111th of Pennsylvania's ad1ninistrative agency llUthodzed m1d e1npo\vered to adininister and enforce the 1972 Act. 2. The Bureau is primnrily responsible for ndmiulstering nnd enforcing the 1972 Act for the Departtnent.

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continuity plnn required under Regulation 304,071 (relating to business continuity and succession planning).'1 l 2. At all tiiues n1aterial herein, W AM did not rnake and 1nnintnin written procedures relnting to the business continuity and succession plan required under Regulalion 304.07 J. 13. Regulation 304.07 l(a), 10 Pa. Code§ 304.07l(a), states that •n investment adviser registered \Vith the Depnrt1ncnt ((shaH establish, i1nple1nent 1 and 1nttintnin \Vrilten procedures relnting to t1 business continuity nnd succession plnn/1 14. At nil Hines 1naterial herein, WAM failed lo est<~blish 1 hnple1nent, and 1naintain \vritten procedures !'elating lo a business continuity and succession plnn. VIOLATIONS IS. By engaging in the acts nnd conduct set forth in pnrngrnphs 6 through IO obove, WAM and Wolff had custody over client funds or securities and foiled to file with the Department an audited balance sheet as of the end of Its fiscal year, \vhich nets and conduct fonn n bnsls lo deny> suspend. revoke, or condition the registration ofWAM and Wolff or censure WAM and Wolff pursuant to Section 305(n)(v) of tho· 1972 Act, 70 P.S. § l-305(a)(v), and Regulation 304.022(a), 10 Po. Code§ 304.022(a). 16. By engaging in the acts nnd conduct set forth in paragraphs 6 through 8 and 11 through 12 above, W AM and Wolff failed lo make and keep tnie, accurate and currellt certain books, ledgers and Jecords, including \vritten procedures relating to the business and continuity plan required under Regulation 304.071, 'vhich acts and conduct fonn a basis to deny, suspend, revoke, or condition the registration ofWAM and Wolff or censure W AM and Wolff pursuant to Section 305(n)(v) of the 1972 Act, 70 P.S. § 1-305(a)(v), mid Regulation 304.012(•)(24), 10 Pa, Code§ 304.012(a)(24). Page 3 of7 '"w

17. By engaging in the acts and conduct set forth in µarngraphs 6 through 8 and 13 through 14 above, W AM and Wotff CaHed to estabHsh1 hnp\en\ellt and lnaintnh1 \Vr\tton procedures telating ton business continuity and succession phui 1 \vhich nets lHtd conduct fom1 a basis to deny, suspend. revoke, 01· condition the registralion ofWAM and Wolff or censure WAM and Wolff pursuant to Section 30S(n)(v) of the 1972 Act, 70 P.S. § 1-305(a)(v), and Rogulation 304.07l(a), 10 Pa. Code§ 304.0?l(n). RELIEF

18. W AM and Wolff shall pay the Depnrt1nent nn adn1lnislrative assessntent in the nniount of $51

19. Pny1nent sha\I be 1nade by certified check or money order that ls niade payable to the "Deparhnent of Banking nnd Securities" and shull be nu1lled or delivered in person lo the Bureau of Securities Con1pliance and Exa1nina1ions located at l 7 North Second Street, Suite 1300, Harrisburg, Pennsylvonla 17101. The assessment slrnll be pold as follows: a. $625.00 on or before December I, 202J b. $625.00 011 or before March 1, 2024 o. $625.00 on or before June l, 2024 d. $625.00 011 or before September I, 2024 e. $625 .00 on or before December 1, 2024' f. $625.00 on 01· before March 1, 2025 g. $625.00 oo or before June I, 2025 h. $625.00 on or before September I, 2025

20. W AM and Wolff are ORDERED to comply with the 1972 Act, and Regulations ndopted by the Departn1ent, and in particular Section 305 of the 1972 Act and Regulation Sections 304.012(a)(l 8) and 303.012(i). Page4 of?

21. Should WAM and Wolff fail to pny the assessment as set forth in pnrngraph 15 above1 the sanctions set forth else,vhere in the Ord~r shall continue in f\111 force nncl effect until f!11 payment is made, However, this provision shall not be conslnied as affording W AM and Wolff the option of either pnying the assessment or being indefinitely subject Lo the sanctions. t 8. Should W AM nnd Wolff fail to comply with any and/or all provisions of this Order, lheDepartn1ent 1nay in1poso additional sanctions and costs and seek other appropriate relief subj eel to WAM's nnd Wolfl's right ton hcnring pursuant to the 1972 Act. FURTHER PROVISIONS

22. Consent. WAM and Wolff hereby knowingly, willingly, voluntalily, and irrevocobly consent Lo the enlly ot' this Order pursuant to ihe Bureau's authority under the 1972 Act and ngree that they understand all the tennsand conditions contnined herein. W AM nnd Wolff, by voluntarily entering into this Orderl \Vnlve any right to a hearing or appeRl concerning lhe tenns1 conditions, and/or penalties sel forth In this Order.

23. Entire Agree1nenl. This Order contains the entire agree1nent behveen the Depnrttnent, W AM, and Wolff. There are no other terms, obllgations, covenants, representations, stateinents, conditions, or othef\visc, of any kind .vhatsoever concerning this Order. This Order may be amended in writing by mutuol ngreemenl by lhe Deportment, W AM, nnd Wolff.

24. Binding Nature. The Depart1nent1 WAM1 and Woltl', and aH offlcers, owners, <lireetors, employees, heirs and assigns of W AM intend to be nnd are legally bound by lhe tenns of this Order.

25. Counsel. This Order is entered into by the parties upon foll opportunity for legal advice front leg11I counsel. Page 5 of7 ~G{/

26. Effectiveness. WAM nnd Wolff hereby stipulnte and agree that the Order shall beco1ne otTeotive on lhe date the Bureau executes the Order,

27. Other Enforcement Action. (n) The Depart1nent reserves all {ls rightsj d\li$, ~nd a\tho)ity 1:0 enforce a\1 statutes~ n1les, and regul!'tlons under its jurisdiction against WAM and Wolff ln the future regarding all mnlters no\ resolved by this Order. (b) WAM noel Wolff acknowledge and ttgree that this Order is only binding upon the Deparhnent and not any other 100111, slate or federal agency, <lepa111nent, or office regtuding tnatters lvithin this Order.

28. Aulhotizalign. The pai1ies below are authorized lo execute this Order and legnlly bind their respective patiies.

29. Count¢rparts. This Order 1nfly be executed In separate counterparts, by focsimile and/or by l'DF.

30. Titles. The titles used to identify the paragraphs of this docun\ent are for the convenience of reference only and do not control the interpret!ltio1\ of this docu1nenl.

31. .!'JlllllilJl. The Dep11rtment finds lhat it is necessary nnd appropriate, in the public inlercst tor the proteotlon of investors1 and consislent \Yilh the purposes fairly intended by the policy and provisions of the 1972 Act to issue this Order. WHEilEFORE~ in consideration of the foregoing, including the recilnl pnragrnphsi the Con11nonwenllh of Pennsylvania, Deportnlent of Banking and Securities, Bureau of Securities Con1p!in11ce and Exao1ination, W AM, und Wolff, intending to be legally bound, do hereby execute this Consent Agrce1nent and Order, Page 6 of7 «- IAJ

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