SEC Suspends Divine Capital Markets, LLC From Participating in Penny Stock Offerings

On August 1, 2011, the Securities and Exchange Commission settled an administrative proceeding and imposed cease-and-desist orders, suspensions, and monetary sanctions against Divine Capital Markets, LLC (Divine), Divine’s majority owner and Chief Executive Officer Danielle Hughes, and former Divine registered representative Michael Buonomo for violations of Sections 5(a) and (c) of the Securities Act of 1933 in connection with the sale of unregistered securities of Advanced Optics Electronics, Inc. (ADOT).

Without admitting or denying the findings, except as to jurisdiction, which they admitted, the Respondents consented to the following:

Divine consented to the entry of an Order imposing a censure; requiring that it cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act; suspending it from participating in any offering of penny stock for a period of twelve months; and requiring that it pay disgorgement of $33,762, prejudgment interest of $6,921, and a civil penalty in the amount of $60,000.

Hughes consented to the entry of an Order suspending her from association in a supervisory capacity with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating agency for a period of four months; and requiring her to pay a civil money penalty in the amount of $25,000.

Buonomo consented to the entry of an Order requiring that he cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act; suspending him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating agency for a period of twelve months; and requiring him to pay disgorgement of $29,017 and prejudgment interest of $5,948, but waiving payment of such amount except for $3,000 based upon his demonstrated inability to pay.

The Orders resolve the proceeding captioned In the Matter of Divine Capital Markets, LLC, Danielle Hughes, and Michael Buonomo. (Rels. 33-9247; 33-9248; 34-64998; 34-64999; File No. 3-14274).

This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.

If you have questions about investments you made with Divine Capital Markets, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

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