HomeMy WebLinkAbout143-SL Credit Suisse Securities (USA) LLCPHONE: 717-783-1610
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STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120-0400
In Re: Credit Suisse Securities (USA) LLC, File Docket: 19-003-L
Respondent X-ref: Order No. 143-SL
Date Decided: 9/26119
Date Mailed: 10/16/19
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
Michael A. Schwartz
Shelley Y. Simms
FACSIMILE* 717-787-0806
WEBSITE: WwMethimpamo
This is a final adjudication of the State Ethics Commission as to the alleged
delinquency and/or deficiency of expense r orts) required to be filed pursuantto
Pennsylvania's lobbying disclosure law, 65 Pa.C,S. 1 3AO 1 et seg., hereinafter referred to
as the ,Lobbying Disclosure Law,"
The Investigative Division initiated these proceedings byfilin with the State Ethics
Commission and serving upon Respondent Credit Suisse Securities $SA) LLC (hereinafter
also referred to as "Respondent") a Notice of Alleged Noncompliance. An Answer was
filed; a hearing was not requested. A Stipulation of Findings and a Consent Agreement
were subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
Effective January 1, 2017, the Pennsylvania Department of State 'Department
of State") increased the thresholds under 65 Pa.0 -�'ration under
65 Pa.C.S. § 13A04 and the threshold for reporting under 65 Pa.C.S. I 13A05(d) from
$2,500.00 to $3,000.00.
In 2018 the Lobbying Disclosure Law was amended by Act 2 of 2018, and as of
April 16, 2018, the Department of State will not accept paper registrations or expense
irep�o�irts.
ALLEGED NONCOMPLIANCE:
That Respondent, in its capacity as a principal registered with the Department of
State pursuant to the Lobbying Disclosure Law (65 Pa.C.S. § 13A01 et sffl.), failed
to include the name and emailaddress of an authorized re resentatiTe—,employee,
or agent on its principal registration pursuant to 65 Pa.C.S. § 13A04 and failed to
timely file a quarterly expense report pursuant to 65 Pa.C.S. § 13A05 for the third
(3rd) quarter of 2018.
II. FINDINGS,
1 Respondent is Credit Suisse Securities (USA) LLC ("Respondent") and was a
registered?rincipal as that term is defined by the Lobbying Disclosure Law, Act 134
of 2006, 6 Pa.C.S. § 13A01 et seq.
a. Respondent initially registered as a principal with the Department of State on
August 17, 2011, for the registration period January 1, 2011, through
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December31, 2012.
b. Respondent's registration statement indicates that lobbying commenced on
August 17, 2011.
2. Respondent filed a principal registration statement with the Deartment of State for
the registration period January 1, 2017, through December 31, 2018,
a. By registering with the Department of State, Respondent consented to
receive service of notices, other official mailings, or process at the address
listed on the registration statement.
b. Respondent was assigned the principal registration number "P31406."
C. In filing its principal registration, Respondent identified its registered mailing
address as;
One Madison Ave.
New York, NY 10010
3. The Lobbying Disclosure Law, specifically 65.Pa.C.S. § 13A04, states the following
regarding the registration of an entity as a principal:
§ 13A44. Registration
a. General rule. --Unless excluded under section 13A06
(relating to exemption from registration and reporting), a
lobbyist, lobbying firm or a principal must register with
the department electronically using the computerized
filing system developed by the department that is
consistent with the purposes of this chapter within ten
days of acting in any capacity as a lobbyist, lobbying
firm or principal. Registration shall be biennial and shall
begin January 1, 2007.
b. Principals and lobbying firms.--
1 A principal or lobbying firm required to register
under subsection (a) shall file a single
repistration statement setting forth the following
information with the department:
i. Name of the business.
ii. Permanent address.
iii. Daytime teleThone number,
iv. E-mail ad ress of the authorized
representative employee or agent, if
available.
V. Nature of business.
vi. Name, registration number and acronym
of any affiliated political action
committees.
vii. Name and permanent business address
of each individual who will for economic
consideration engage in lobbying on
behalf of the principal or lobbying firm,
Credit Suisse Securities i(USA) LLQ, 19-003-L
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viii. Registration number when available,
ix. Name of the authorized representative,
employee or agent,
Amendments.-
1 . If there is a change of information required for
the registration statement under subsection
(b)�1) or (2) or (c), an amended registration
sta ement shall be filed with the department
electronically using the computerized filing
system developed by the department that is
consistent with the purpose of this chapter within
14 days after the change occurs.
When there is a change in information required
for the registration statement under subsection
(b)(3), an amended registration statement shall
be filed with the department electronically using
the computerized filing system developed by the
department that is consistent with the purpose of
this chapter within 14 days of the end of the year
in which the change occurs.
65 Pa.C.S. § 13A04(a), (b)(1), (d).
In addition to the Lobbying Disclosure Law, the duly promulgated Regulations
reporting periods:
provide further information in relation to registration periods an
§ 61.3. Registration periods and reporting periods.
Registration under section 1 3AO4 of the act (relating to
registration) shall be biennial. The first registration
period which commenced January 1, 2007, continues
through December 31, 2008. Subsequent registrations
shall commence on January I of each odd numbered
year.
51 Pa. Code § 51.3(a).
5, Section 13A05 of the Lobbying Disclosure Law sets forth, in part, the following
requirements for the contents of quarterly reporting forms filed by principals:
§ 13AO6. Reporting
(a) General rule.-- A registered gincirl shall, subject to
the penalties under 18 Pa. S. 4904 (relating to
unsworn falsification to authorities), file quarterly
expense reports with the department electronically
using the computerized filing system developed by the
department that is consistent with the purpose of this
chapter no later than 30 days after the last day of the
quarter.
(b) Content.—
Credit Suisse Securities (USA) LLC, 19-003-L
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(1) Each expense report must list the names and
registration numbers when available of all
lobbyists by whom lobbying is conducted on
behalf of the principal and the general subject
matter or issue being lobbied.
(2) Each expense report shall include the total costs
of all lobbying for the period. The total shall
include all office expenses, personnel expenses,
expenditures related to gifts, hospitality,
transportation
rns ortation and lodging to State officials or
employees, and any other lobbying costs. The
total
amount
nt reported under this paragraph shall
be allocated in its entirety among the following
categories:
The costs for gifts, hospitality,
transportation and lodging given to or
provided to State officials or employees or
-.heir immediate families.
The costs for direct communication.
The costs for indirect communication.
(iv) Expenses required to be reported under
this subsection shall be allocated to one
of the three categories listed under this
section and shall not be included in more
than one category,
65 Pa.C.S. § 13AO5(a), (b)(I)-(2).
6. In addition to the Lobbying Disclosure Law, the duly promulgated Regulations
provide further instructions in relation to registration periods anTreporting periods:
§ 51.3. Registration periods and reporting periods.
(b) Reporting under section 13A05 of the act (relating to
report n shall be quarterly within each calendar year:
for Januarythrough March; April through June, July
throu h September; and October through December.
(quarterly expense reports shall be filed on or before the
30th day after the quarterly reporting period ends.
51 Pa. Code § 51.3(b).
7. fAs a registered principal, Respondent is required to electronically file with the
epartment of State either a quarterly expense report or a statement of failure to
meet the reporting threshold for each each
it has been registered as a principal,
by no later than the 30th day after eacT quarterly reporting period has ended. 65
Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
8. Section 13A05 of the Lobbying Disclosure Law additionally sets forth the threshold
Credit Suisse Securities (USA) LLC, 19-003-L
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withregard to reporting expenditures:
(d) Thresholds for reporting.— An expense report
required under this section shall be filed electronically
using the computerized filing system developed by the
department that is consistent with the purpose of this
chapter when total expenses for lobbying exceed
J$3,000] for a registerediprincipal in a reporting period.
n a reporting period n which total expenses are
[$3,000] or less, a statement to that effect shall be filed
electronically using the computerized filing system
developed b the department that is consistent with the
purpose of this chapter.
65 Pa.C.S, § 13A05(d).
Section 13A03 of the Lobbying Disclosure Law defines the following terms,
"Lobbying." An effort to influence legislative action or
administrative action in this Commonwealth. The term
includes:
1 direct or indirect communication;
2 office expenses; and
3 providing angil, hospitality, transportation or lodging
to a State o Icial or employee Tcor the purpose of
advancing the interest of the lobbyist or principal.
"Legislative action." An action taken by a State official or
employee involving the preparation, research, drafting,
introduction, consideration, modification, amendment,
approval, passage, enactment, tabling, postponement, defeat
or rejection of:
III legislation;
2 legislative motions;
3 a veto by the Governor; or
4 confirmation of appointments by the Governor or
appointments to public boards or commissions by a
member of the General Assembly.
"Legislation." Bills, resolutions, amendments and nominations
pending or proposed in either the Senate or the House of
Representatives. The term includes any other matter which
may become the subject of action by either chamber of the
General Assembly.
"Direct communication." An effort, whetherwritten, oral or by
any other medium, made by a lobbyist or principal, directed to
a State official or employee, the purpose or foreseeable effect
of which is to influence legislative action or administrative
action. The term may include personnel expenses and office
expenses.
0 - -
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10, [As a registered principal, Respondent is required to electronically file with the
Department of State either a quarterly expense report or a statement of failure to
meet the reportingthreshold for each each
it has been registered as a principal,
by no later than the
e 30th day after eac.T quarterly reporting period has ended. 65
Pa.C.S. § 13A05(a), (d); 51 Pa. Code § 55.1(d)].
a. Resgondent filed a quarterly expense report for the second (2nd) quarter of
201
b. Res ondent did not file a third (31d) quarter 2018 expense report by October
30, �O 18.
11. The Regulations promulgated under the Lobbing Disclosure Law specifically
provide the following in relation to a delinquent filing:.
§ 51.4. Delinquency.
(a) A re'stration statement or report required to be filed
under section 13A04 or 13A05 of the act (relating to
registration; and reporting) is delinquent if not received
by the Department on the date due as follows:
(1) Hard copy filings must be received by 5 p.m. in
the office For quarterly expense reports, from 5
p.m. until 12 a.m. midnight, a hard copy filing
may be filed with the Defartment's designee.
The filing location an the Department's
designee will be on the Department's web site.
Hard co fili are no longer allowed
pursu
ant
-2 (H..1175),�2,
Ac 201 8 13
approved February 14, 2018, eff. pril
[15], 2018.
(2) Electronic filings may be filed until 12 a.m.
midnight.
(b) A failure to timely file a registration statement, a
quarterly expense report, a separate expense report, a
notice of termination or an amendment to one of these
filings constitutes a failure to register or report as
required by the act- delinquency continues until the filing
is received by the department in proper form.
51 Pa. Code § 51.4(a)-(b).
12. [in relation] to the filing requirements of quarterly expense reports, the Regulations
read, in part:
§ 65.1. Quarterly expense reports.
(a) A quarterly expense report is required to be filed as set
forth in this section when the total lobbying expenses of
a registered principal, registered lobbyingfirm or
registered lobbyist lobbying on the principal's behalf,
Credit Suisse Securities (USA) LLC, 19-003-L
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together exceed $3,000] in a quarterly reporting
period. the threshold of [$3,000'1 includes any economic
consideration �aid by a principal to a lobbying firm or
lobbyistfar lob ying. lnd1vduals exempt under section
13A06 of the act (relating to exemption from registration
and reporting) need not register or report,
(b) For a quarterly reporting period in which the total
lobbying expenses of a registered principal, registered
lobbying firm or registered lobbyist lobb ing on the
principal's behalf, together, are [$3,000�, or less, a
statement to that effect shall be filed with the
Department by checking the appropriate block on the
quarterly expense report form.
(d) The pal shall file a quarterly expense repoor
statement report of failure to meet the reporting threshold on
or before the 30th day after the quarterly reporting
period ends.
(g) A quarter expense report of a principal required to be
registerey under the act must include at least the
following information:
(3) The total costs of all lobbying for the period. The
total must include all office expenses, personnel
expenses, expenditures related to
hospitality, transportation and lodging to gifts,
officials or employees, and any other lobbying
costs.
(i) The total amount reported under this
paragraph shall be allocated in its entirety
among the following categories:
(A) The costs for gifts hospitality,
transportation an lodging given co
or provided to State officials or
employees or their immediate
families.
(B) The costs for direct communication.
(C) The costs for indirect
communication.
(ii) Registrants shall use a good faith effort to
allocate expenses required to be reported
under this subsection to one of the three
categories listed herein. A given expense
Credit Suisse Securities (USA) LLC, 19-003-L
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maynot be included in more than one
category....
51 Pa. Code § 55.1 (a), (b), (d), (g)(3)(i)-(ii).
13. By Warning Notice letter dated JanuaX 16, 2019, Respondent was served with
notice in accordance with Section 13 09 of the Lobbyfin Disclosure Law and
Section 63.4(1) of the Lobbying Disclosure Regulations of
t le specific allegations:
that Respondent failed to file a quarterly expense report for the third (3rd) quarter of
2018 and failed to properly register with the Department of State when Respondent
failed to include the name and email of Respondent's authorized representative,
employee, or agent on the registration.
a. Said Warning Notice was mailed to:
Credit Suisse Securities (USA) LLC
One Madison Ave.
New York, NY 10010
b. This is the same address as listed on Respondent's principal registration
statement.
C. By submitting the principal registration statement, Respondent consented to
receipt of service of notices, other official mailings or process, at the address
listed on the registration statement. (,See, Paragraph 2(a) above),
14. Said Warning Notice letter set forth the nature of the alleged noncompliance and the
administrative and criminal penalties for failing to file.
15. Said Warning Notice letter provided Respondent an opportunity to cure the alleged
noncompliance and avoid the institution of these proceedings as to alleged
noncompliance by filing a quarterly expense report for the time period covering the
third (3m) quarter of 2018 and amending its registration to include the name and e-
mail address of an authorized representative, employee, or agent, with the
Department of State within thirty (30) days from the mailing date of the Warning
Notice letter.
16. The Chief of the Division of Campaign Finance and Lobbying Disclosure for the
Commonwealth of Pennsylvania — Department of State conducted a search of the
Department of State's records, and, as of March 4, 2019, no third (3rd quarter2018
expense report was found to have been filed with the Department of 2tate for Credit
Suisse Securities (USA) LLC.
17. The Lobbying Disclosure Law provides for civil and criminal penalties for failincl to
comply with the reyistration statement filing and quarterlyexpense reporting
requirements thereo . Specifically, the Lobbying Discosure aw provides that:.
a. Negligent failure to register or re art as required by this
chapter is punishable by an administrative penalty not
exceeding thfollowing:
�i) For the first ten late days, $50 for each late day.
ii) For each late day after the first ten late days through the
210th late day, $100 for each late day.
(iii) For each late day after the first 20 late days, $200 for
each late day.
Credit Suisse Securities WSA) V. 19-003-L
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65 Pa.C.S. § 13A09(c)(1).
b. The total amount of the administrative penalty that may be levied after
hearing by a majority vote of all of the Commission Members shall not be
limited by any of er provision of law. 65 Pa.C.S. § 13A09(c)(2).
C. Any person that fails tocomply with the requirements of the Lobbying
Disclosure Law, after notice of noncompliance and after a hearing if one is
� reques ed, may be prohibited from lobbyin� for economic consideration for
to five Ive (5) years [in accordance with 1 5 Pa.C.S. § 13AO9(e)(4)]. 65
Pa.C.S. §§ 13A09(d), (e)(4).
d. A person that intentionally fails to register or report as required by the law
commits a misdemeanor of the second degree. 65 Pa.C.S. § 13A09(e)(1).
e. A registrant who files a report under the law with knowledge that the report
contains a false statement or is incomplete commits a misdemeanor of the
second degree. 65 Pa.C.S. § 13A09(e)(2).
f. Except as set forth in paragraph (d) or (e) above a person that intentionally
violates [the Lobbying Disclosure Law] commits � misdemeanor of the third
degree. In addition to any other penalties imposed under [the Lobbying
Disclosure Law], the court may impose a fine not to exceed $25,000 against
a principal who is found guilty under [Section 13A09(e)(3) of the Lobbying
Disclosure Law].
9. In addition to any criminal penalties imposed under [the Lobbying Disclosure
Law], the Commission may prohibit a person from lobbying for economic
consideration for up to five years for conduct which constitutes an offense
under [Section 13A09(e) of the Lobbying Disclosure Law]. Criminal
prosecution or conviction is not required for imposition of [such prohibition].
The Commission shall not impose such prohibition] unless the person has
been afforded the opportunity for a heariny, which shall be conducted by the
Commission in accordance with sections 107(14)and 1108(e ofthePublic
Official and Employee Ethics Act, 65 Pa.C.S. §§ 1107(14) 108(e)]. 65
Pa.C.S. § 13A09(e)(4).
18. Respondent's expense report was a total of one hundred and thirty-four (1134)
days delinquent.
a. The third quarter expense report period closed [September 30, 2018].
See, 65 Pa.C.S. § 13A03 Definitions — "Reporting period."
b. Expense reports were to be filed [by] October 30, 2018. See, 65
Pa.C.S. § 13A05(a).
c. The first day in which Respondent's third (3rd) quarter 2018 Expense
Report was delinquent was October 31, 2018.
d. Respondent filed its third (3111) quarter 2018 Expense Report on March
14,2019,
a, Respondent's failure to file its third (3rd) quarter 2018 Expense
Report was due to negligence,
Credit Suisse Securities (USA) LLC, 19-003-L
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19. Respondent properly filed its fourth (4 th ) quarter 2018 Expense Report.
Ill. DISCUSSION:
In the instant matter, the alleged noncompliance is that Respondent, as a principal
registered with the Pennsylvania Department of State ("Department of State") pursuant to
the Lobbying Disclosure Law, failed to include the name and email address of an
authorized re resentative, employee, or agent on its principal registration pursuant to 65
Pa.C.S § 133Z04 and failed to timely file a quarterly expense report pursuant to 65 Pa.C.S.
§ 13A05 for the third (3rd) quarter of 2018.
As noted above, the parties have submitted a Consent A reement and Stipulation of
Findings. Per the Consent Agreement of the parties, the Investigative Division has
exercised its prosecutorial discretion to nol pros the allegation under Section 13A04 of the
Lobbying Disclosure Law, Based upon the nol pros, we need not address the allegation
under Section 13A04 which is no longer before us.
The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein,
Respondent initially registered as a principal with the Department of State on Au ust
17, 2011, for the registration period January 1, 2011,thrOLIgh December 31, 2812.
Respondent's registration statement indicate that lobbying commenced on August 17
2011, Perthe Dgartment of State's website, on January 3, 2017, Respondent re istered
as a principal with the Department of State for the registration period P., 2017,
through December 31, 2018. Respondent was assigned the principal registration number
"P31406,"
Pursuant to Section 13A05 of the Lobbying Disclosure Law, 65 Pa.C,S, § 13A05,
and Section 51.3 of the Lobbying Disclosure Regulations, 51 Pa. Code § 51.3, expense
reports are filed on a quarter y basis. When a registered principal's total expenses for
lobbyingexceed $3,000 for a reporting period/ uarter, the principal is required to file a
last
quarterly expense report with the Department of State by no later than 30 days after the
a day of such quarter. For a reporting period in which total expenses are $3,000 or less,
a statement to that effect must be filed with the Department of State by the principal by
checking the appropriate block on the quarterly expense report form, 51 Pa. Code §
55.1(b). Thus, a registered principal must file either a quarterly expense report or a
statement of failure to meet thereportingthreshold no later than the Toth day after each
quarterly reporting period ends. l Pa. Code § 5511(d).
Having registered on January 13, 2017, for the registration period January 1, 2017,
through December 31, 2018, Respondent was required to file either aiquarterly expense
repo or a statement of failure to meet the reporting threshold for the third quarter of 2018.
Respondent failed to file either.
Failure to timely meet the aforesaid filing requirement constitutes a failure to report
as required by the Lobbying Disclosure Law, and the delinquency continues until the filing
is received by the Department of State in proper form, 51 Pa. Code § 51.4(b).
B Warning Notice letter dated January 16, 2019, Respondent was served with
notice of alleged noncompliance in accordance with Section 63,4k1) of the Lobbying
Disclosure Regulations, 51 Pa.
Code � 63.4(1). The WarningNotice letter provided
Respondent an opportunity to cure the alleged noncompliance and avoid the institution of
these proceeding
s by filing a quarterly expense report far the third quarter of 2018 with the
Department of State within thirty (30) days of the mailing date of the Warning Notice letter.
Credit Suisse Securities (USA) LLC, 19-1003-L
age
As of March 4, 2019, no third quarter 2018 expense report was found to have been
filed with the Department of State for Respondent.
On March 14, 2019, Respondent submitted a quarterly expense report for the third
quarter of 2018.
Negligent failure to register or report as required by the Lobbying Disclosure Law is
punishable by an administrative penal as follows: (1) for the first ten late da s, $50.00 for
each late day; (2) for each late day 2er the first ten late Vs through the �Oth late day,
$100 for each late day; and (3) for each late day after the firs 20 late days, $200 for each
late day. 65 Pa.C.S. § 13A09(c)(1).
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Lobbying Disclosure Law to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as, follows:
3. The Investigative Division will recommend the following
conclusions in relation to the above deficiencies:
a. That Respondent, in its ca acity as a Principal
registered with the Pennsylvania Department of
State pursuant to the Pennsylvania Lobbying
Disclosure Law (65 Pa.C.S. § 13A01 et seq.),
failed to timely file a Quarterly Expense Report
pursuant to 65 Pa.C.S. § 13A05, for the third
(3rd) quarter of 2018;
b. That the transgressions of the Lobbying
Disclosure Law outlined in paragraph (a) above
are deemed to be negligentin nature;
C. The Investigative Division has elected to nolle
pros the allegation regardinT the failure to
properly identify an authorizerepresentative's
name and email on the principal registration.
d. For the purposes of this Consent Agreement,
Respondent was deficient in filing its third 3rd
quarter of 2018 Expense Report by a total of 1 A
days, calculated as set forth below:
On January 16, 2019, a Warning Notice
regarding the delinquent quarterly
expense report was sent to Respondent
via First Class United States Mai;
Respondent did not file the outstanding
Quarterly Expense Report for the third
(3rd) quarter of 2018 within the stated
cure period; and
iii. Respondent has properly filed all
outstanding Expense Reports. The
Credit Suisse Securities -&I�LLC, 19-003-L
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delinquent period for purposes of this
Consent Agreement is calculated from the
first date third (3rd) quarter of 2018
Expense Report was delinquent (October
31, 2018) until the date Respondent filed
its third (3rd) uarter 2018 Expense
Report (March 1T 2019).
Respondent agrees to pay the sum of $12,316.00 in settlement
of this matter to be paid as follows,
a. In regard to Re ondent's failure to file a timely
third (3rd) quarter 2018 nse report, and
pursuant to Section 13AO9F
of the Lobb ing
isclosure Law, 65 Pa.l § 13AO9(c�o),
Respondent agrees to pay an administrative
penalty in the amount of $50.00 per day for the
irst ten days, $100,00 erday far each day after
the first ten late days through the 20th late day,
$200.00 per day for the next 7 days, and $88.GO
for the remaining 107 late days during the
delinquent period as outlined above for a total
amount Of $1 2,316.00, which shall be made
payable to the Commonwealth of Pennsylvania
and forwarded to the Pennsylvania State Ethics
Commission within 30 days of the adjudication in
this, matter,
The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter, impose no
further sanctions, and make no specific recommendations to
any law enforcement or other authority to take action in this
matter as to either Respondent, or any individual or
representative of Respondent. Such, however, does not
prohibit the Commission from initiating appropriate
In enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's Order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1-2.
In considering the Consent Agreement and Stipulation of Findings, we agree with
the parties that Respondent as a registered principal failed to timely file a quarterly expense
report with the Department of State for the third quarter of 2018 as required by Section
13A05 of the Lobbying Disclosure Law.
Accordingly, we hold that Respondent as a registered principal failed to timely file a
quarterly expense report with the Department of Nate for the third quarter of 2018 as
required by Section 13A05 of the Lobbying Disclosure Law. We accept the
recommendation of the parties for a determination that the transgression of the Lobbying
Disclosure Law outlined immediately above is deemed to be negligent in nature.
The parties have agreed that Respondent was 134 days delinquent in filing its
quarterly expense report for the third quarter of 2018.
Credit Suisse Securities (USA) LLC, 19-003-L
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As part of the Consent Ag
reement, Respondent agreed to pay an administrative
penalty in the total amount of $1 316.00 (10 days x$50,00 + 10 days x $100,00 + 7 days
x $200.00 + 107 days x $88.00 = $12,316.00), payable to the Commonwealth of
Pennsylvania and forwarded to this Commission within thirty days of the adjudication in this
matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, we approve the Consent
Agreement that has been submitted by the parties,
This Commission hereby levies one administrative enalty against Respondent
Credit Suisse Securities (USA) LLC in the total amount of M,316.01 for its delinquent
quarterly expense report for the third quarter of 2018, calculated as follows: $50.01er day
for the first ten days its third quarter 2018 expense report was delinquent, plus $10 .00 per
day for the next ten days its third quarter 2018 expense report was delinquent, plus $200
Ner V for the next seven days its third quarter 2018 expense report was delinquent, plus
8.0 per day for the remainin one hundred and seven da sits third quarter 2018
expense report was delin uent (19 days x $50.00 + 10days x $160 . 00 + 7 days x $200.00
+ 107 days x $88.00 = P2,316.00).
To the extent it has not already done so, Respondent Credit Suisse Securities (USA)
LLC is directed to pay the aforesaid administrative penalty in the total amount of
$12,316.00 to be made payable to the Commonwealth of Pennsylvania and forwarded to
this Commission by no later than the thirtieth (30111) day after the mailing date of this
adjudication and Order.
Noncompliance will result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
1 As a principal registered with the Pennsylvania Department of State ("Department of
State") under principal registration number "P3140 i P$ Credit Suisse Securities (U SA)
LLC has been subject to the reporting requ rements of Section 13AO5 of
Pennsylvania's lobbying disclosure law ("Lobbying Disclosure Law"), 65 Pa.C.S. §
13AO5,
Z Credit Suisse Securities (USA) LLC, in its capacity as a principal registered with the
Department of State under principal registration number "P31406, failed to timely
file a quarterly expense report with the -Department of State for the third quarter of
2018 as required by Section 13A05 of the Lobbying Disclosure Law, 65 Pa,C,S. §
13AO5.
I The transgression of the Lobbying Disclosure Law outlined in paragraph 2
immediately above is deemed to e negligent in nature.
4. The prerequisite service of a warning notice in accordance with Section 63,4(1) of
the Lobbying Disclosure Regulations, 51 Pa. Code § 63.4(1), was satisfied,
5. Based upon the totality of the circumstances in this case the imposition of an
administrative penalty in the total amount of $12 316.00 is warranted (10 days x
$50.00 + 10 days x $100.00 + 7 days x $200.00 + i07 days x $88.00 = $12,316.00).
In Re: Credit Suisse Securities (USA) LLC, File Docket: 19-003-L
Respondent Date Decided: 9/26/19
Date Mailed: 10/16/19
ORDER NO. 143-SL
1 Credit Suisse Securities (USA) LLC, in its capacity as a principal registered with the
Pennsylvania Department of State ("Department of State") under ncipal
registration number "P31406," failed to tamely file a quarterly expense repotliththe
Department of State for the third quarter of 2018 as re�uired by Section 13A05 of
Pennsylvania's lobbying disclosure law ("Lobbying Disclosure Law"), 65 Pa.C.S, §
13AO5.
The transgression of the Lobbying Disclosure Law outlined in paragraph 1
immediately above is deemed to e negligent in nature.
Pursuant to Section 13A09(c) of the Lobbying Disclosure Law, 65 Pa.C.S. §
13AO9(c), and the Consent Agreement of the parties, this Commission herebK levies
one administrative penalt against Credit Suisse Securities USA) LLC in t e total
amount of $12 316 00, calculated as follows. $50.00 per day (USA
the first ten days its
third quarter 2618 expense report was delinquent, plus $100.00 per day for the next
ten days its third quarter 2018 expense report was delinquent, plus $200 per day for
the next seven days its third quarter 2018 expense report was delinquent, plus
$88.00 per day for the remaining one hundred and seven days its third quarter 2018
expense report was delinquent (10 days x $50.00 + 10 days x $100.00 + 7 days x
$200.00 + 107 days x $88.00 = $12,316,00).
4. To the extent it has not already done so, Credit Suisse Securities (USA) LLC is
ordered to pay the aforesaid administrative penalty in the total amount of $12,316.00
to be made payable to the Commonwealth of Pennsylvania and forwarded to the
Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after
the mailing date of this Order.
5. Noncompliance with Paragraph 4 of this Orderwill result in the Commission initiating
appropriate enforcement action(s).
BY THE COMMISSION,