FIL_EO 2020 SEP 30 AM 8: 12

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SEC , . 1 1 ~ '. ~PART ME Hr OF i i:-c

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF BANKING AND SECURITIES, BUREAU OF SECURITIES COMPLIANCE AND EXAMINATIONS

v.

BLUE WATER FINANCIAL, LLC

DOCKET No. 2000L/&sEC-CAO)

CONSENT AGREEMENT AND ORDER

The Commonwealth of Pennsylvania, acting through the Department of Banking and

Securities ("Depatiment"), Bureau of Securities Compliance and Examinations ("Bureau"), has

conducted an investigation of the business practices of Blue Water Financial, LLC ("Blue Water")

and its officers and employees. Based on the results of its investigation, the Bureau has concluded

that Blue Water has operated in violation of the Pennsylvania Securities Act of 1972, 70 P.S. § 1-

101 et seq. ("1972 Act"). Blue Water, in lieu of litigation, and without admitting or denying the

allegations herein, and intending to be legally bound, hereby agrees to the tenns of this Consent

Agreement and Order ("Order") .

BACKGROUND

1. The Depa1iment 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.

3 Blue Water (CRD # 171285) was, at all times material herem, a New Jersey

limited liability company with an address at 11 Mountam Blvd, Suite 201,Wanen, New Jersey

07059

4. Fromm or about August 2018 until the present, Blue Water has been registered m

Pennsylvama pursuant to Section 30l(c) of the 1972 Act, 70 PS § 1-301(c), as an mvestment

adviser.

5 Fromm or about February 2016 until July 2018, Blue Water transacted busmess

m Pennsylvania as an mvestment adviser whrle neither registered nor exempt from registratron.

VIOLATION

6. By engagmg m the acts and conduct set forth m paragraphs 5 above, Blue Wate1

transacted business as an mvestment adviser m v10lat10n ofSect10n 301(c) of the 1972 Act, 70 PS

§ 1-301(c).

RELIEF

7 Blue Water shall pay the Department an admmistrat1ve assessment in the amount

of $40,000 Payment shall be made by certified check or money order made payable to the

"Department of Banking and Secunties" and shall be mailed or dehvered m person to the Bureau

of Secunt1es Compliance and Exammations located at 17 N. Second Street, Suite 1300, Hams burg,

Pennsylvania 17101. The admmistratlve assessment shall be paid as follows.

a $1,667 w1thm 30 days of the Effective Date of this Order, as defined in

paragraph 15

b $1,667 shall be paid the1eafter m 22 consecutive monthly payments of $1,667

due on or before the 1st day of each month, begmnmg on January 1, 2021, and ending on or before

October 1, 2022

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c. A final payment m the amount of $1,659 shall be due on or before

November 1, 2022

8 Blue Water ts ORDERED to comply with the 1972 Act, and Regulat10ns adopted

by the Department, and m particular Sect10n 30l(c) of the 1972 Act, 70 PS.§ l-301(c)

9. Should Blue Water fail to pay the assessment as set f01ih m paragraph 7 above, the

sanctions set forth elsewhere m the Order shall contmue in full force and effect until full payment

1s made. However, this provision shall not be construed as affordmg Blue Water the opt10n of

either paymg the assessment or bemg indefimtely subject to the sanctions

10. Should Blue Water fall to comply with any and/or all provisions of tlus Order, the

Department may impose additional sanctions and costs and seek other appropriate relief subject to

Blue Water's nght to a hearmg pursuant to the 1972 Act.

FURTHER PROVISIONS

11 Consent Blue Water hereby knowmgly, wilhngly, 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 cond1t1ons contamcd herein Blue Water, by voluntarily

entenng mto this Order, waives any right to a hearing 01 appeal concernmg the tenns, cond1t1ons,

and/or penalties set fo1th m this Ordei

12 Entire Agreement. This Order contams the entire agreement between the

Department and Blue Water. There aie no other tenns, obhgatrnns, covenants, representations,

statements, conditions, 01 otherwise, of any kind whatsoever concerning this Order This Orde1

may be amended m wntmg by mutual agreement by the Depaitment and Blue Water

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13 Bindmg Nature The Department, Blue Water, and all officets, owners, directors,

employees, heITS and assigns of Blue Water intend to be and are legally bound by the terms ofth1s

Order.

14 Counsel. This Order is entered mto by the parties upon full opporturnty for legal

advice from legal counsel

15. Effectiveness. Blue Water hereby stipulates and agrees that the Order shall become

effective on the date the Bureau executes the Order ("Effective Date").

16 Other Enforcement Action.

(a) The Department reserves all of its nghts, duties, and authority to enforce all

statutes, rules, and regulations under its JUnsd1ct1on against Blue Water m the future regardmg all

matters not resolved by this Order.

(b) Blue Water acknowledges and agrees that this Order 1s only bmdmg upon

the Department and not any other local, state or federal agency, department, or office iegarding

matters within this Order.

17. Authonzat1011. The parties below are authorized to execute this Order and legally

bmd their respective parties.

18. Counterpatis This Order may be executed m separate counterparts, by facs1m1le

and/or by PDF.

19 Titles. The titles used to identify the paragraphs of this document are for the

convemence of reference only and do not control the mterpretat10n of tlus document

20. Fmdmg. The Department finds that it is necessary and appropnate in the public

mterest and for the protect10n of mvestors, and consistent with the purposes fairly mtended by the

policy and provlSlons of the 1972 Act to issue this Order.

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