Commonwealth of Pennsylvania Department of Banking and Securities v. Lakeland Investor Services, Inc. and Mark W. Petro

COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF BANKING AND SECURITIES
:
COMMONWEALTH OF PENNSYLVANIA :
DEPARTMENT OF BANKING AND
SECURITIES, BUREAU OF SECURITIES
COMPLIANCE AND EXAMINATIONS v.
260024 (SEC-CAO)
:
:
: Docket No. :
:
:
LAKELAND INVESTOR SERVICES, INC.; :
MARK W. PETRO :
:
CONSENT AGREEMENT AND ORDER
The Commonwealth of Pennsylvania, acting through the Department of Banking and Securities (“Department”), Bureau of Securities Compliance and Examinations (“Bureau”), has conducted an investigation of the business practices of Lakeland Investor Services, Inc. (“LIS”) and its officers and employees. Based on the results of its investigation, the Bureau has concluded that LIS has operated in violation of the Pennsylvania Securities Act of 1972, 70 P.S. § 1-101 et seq. (“1972 Act”). LIS, in lieu of litigation, and without admitting or denying the allegations herein, and intending to be legally bound, hereby agrees to the terms of this Consent Agreement and Order (“Order”). BACKGROUND

1. The Department is the Commonwealth of Pennsylvania’s administrative agency
   authorized and empowered to administer and enforce the 1972 Act.

2. The Bureau is primarily responsible for administering and enforcing the 1972 Act
   for the Department.
   FILED
   2026 JULY 2 AM 9:32
   PA DEPARTMENT OF
   BANKING AND SECURITIES

3. LIS, CRD #167100, was at all material times herein, a Pennsylvania domestic
   business corporation organized under the laws of Pennsylvania with a principal office located at

4. From in or around April 2013 until the present, LIS has been registered pursuant to
   Section 301(c) of the 1972 Act, 70 P.S. § 1-301(c), as an investment adviser.

5. Regulation 303.012(i) provides that “[a]n investment adviser registered under the
   [1972 Act] shall take steps necessary to ensure that material information contained in its Form ADV and exhibits remains current and accurate. If a material statement made in Form ADV and exhibits becomes incorrect or inaccurate the investment advisor shall file with the Department an amendment on Form ADV within 30 days of the occurrence of the event which requires the filing of the amendment.” 10 Pa. Code § 303.012(i).

6. From in or about February 2020 until February 2024, LIS did not take steps
   necessary to ensure that material information contained in its Form ADV and exhibits remains current and accurate. VIOLATION

7. By engaging in the acts and conduct set forth in paragraphs 3 through 6 above, LIS
   failed to take steps necessary to ensure that material information contained in its Form ADV and exhibits remains current and accurate to achieve compliance with the 1972 Act and other securities laws and regulations, which acts and conduct form a basis to deny, suspend, revoke, or condition the registration of LIS or censure LIS pursuant to Section 305(a)(v) of the 1972 Act, 70 P.S. § 1- 305(a)(v), and Regulation 303.012(i), 10 Pa. Code § 303.012(i), promulgated thereunder. Redacted

RELIEF
9. LIS shall pay the Department an administrative assessment in the amount of
$15,000. Payment shall be made by certified check or money order made payable to the “Department of Banking and Securities” and shall be mailed or delivered in person to the Bureau of Securities Compliance and Examinations located at 17 N. Second Street, Suite 1300, Harrisburg, Pennsylvania 17101. The assessment shall be paid as follows:
a. $1,250 on or before July 31, 2026; b. $1,250 on or before October 31, 2026;
c. $1,250 on or before January 31, 2027;
d. $1,250 on or before April 30, 2027; e. $1,250 on or before July 31, 2027; f. $1,250 on or before October 31, 2027; g. $1,250 on or before January 31, 2028; h. $1,250 on or before April 30, 2028;
i. $1,250 on or before July 31, 2028;
j. $1,250 on or before October 31, 2028; k. $1,250 on or before January 31, 2029; and
l. $1,250 on or before April 30, 2029.
10. LIS is ORDERED to comply with the 1972 Act, and Regulations adopted by the
Department, and in particular Section 305(a)(v) of the 1972 Act, 70 P.S. § 1-305(a)(v), and Regulation 404.014(a)(1), 10 Pa. Code § 404.014(a)(1).

11. This Order is not intended to constitute and shall not be interpreted to constitute a
    basis for disqualification of LIS or any of its affiliates under Federal or state securities laws, rules, or regulations promulgated thereunder or any self-regulatory organizations’ rules or regulations.

12. Should LIS fail to pay the assessment as set forth in paragraph 9 above, the
    sanctions set forth elsewhere in the Order shall continue in full force and effect until full payment is made. However, this provision shall not be construed as affording LIS the option of either paying the assessment or being indefinitely subject to the sanctions.

13. Should LIS fail to comply with any and/or all provisions of this Order, the
    Department may impose additional sanctions and costs and seek other appropriate relief subject to LIS’s right to a hearing pursuant to the 1972 Act. FURTHER PROVISIONS

14. Consent. LIS hereby knowingly, willingly, voluntarily, and irrevocably consents
    to the entry of this Order pursuant to the Bureau’s authority under the 1972 Act and agrees that it understands all of the terms and conditions contained herein. LIS, by voluntarily entering into this Order, waives any right to a hearing or appeal concerning the terms, conditions, and/or penalties set forth in this Order.

15. Entire Agreement. This Order contains the entire agreement between the
    Department and LIS. There are no other terms, obligations, covenants, representations, statements, conditions, or otherwise, of any kind whatsoever concerning this Order. This Order may be amended in writing by mutual agreement by the Department and LIS.

16. Binding Nature. The Department, LIS, and all officers, owners, directors,
    employees, heirs and assigns of LIS intend to be and are legally bound by the terms of this Order.

17. Counsel. This Order is entered into by the parties upon full opportunity for legal
    advice from legal counsel.

18. Effectiveness. LIS hereby stipulates and agrees that the Order shall become
    effective on the date the Bureau executes the Order (“Effective Date”).

19. Other Enforcement Action.
    (a) The Department reserves all of its rights, duties, and authority to enforce all statutes, rules, and regulations under its jurisdiction against LIS in the future regarding all matters not resolved by this Order. (b) LIS acknowledges and agrees that this Order is only binding upon the Department and not any other local, state or federal agency, department, or office regarding matters within this Order.

20. Authorization. The parties below are authorized to execute this Order and legally
    bind their respective parties.

21. Counterparts. This Order may be executed in separate counterparts, by facsimile
    and/or by PDF.

22. Titles. The titles used to identify the paragraphs of this document are for the
    convenience of reference only and do not control the interpretation of this document.

23. Finding. The Department finds that it is necessary and appropriate in the public
    interest and for the protection of investors, and consistent with the purposes fairly intended by the policy and provisions of the 1972 Act to issue this Order. WHEREFORE, in consideration of the foregoing, including the recital paragraphs, the Commonwealth of Pennsylvania, Department of Banking and Securities, Bureau of Securities

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07/01/26