DOB: News Bulletin 1846 - July 9, 1999

The Department of Banking News Bulletin 

 Bulletin # 1846
Week Ending July 9, 1999

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.


STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Date Bank Location Activity
7/8/1999 People's Bank
Bridgeport
*Stop & Shop
  200 New Hartford Road
  Route 44
  Winsted, CT 06098
approved
* Limited Branch

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order

On July 9, 1999, a Consent Order was entered into under the Connecticut Uniform Securities Act with respect to Gaines, Berland Inc., a registered broker-dealer having its principal office at 1055 Stewart Avenue, Bethpage, New York. The Consent Order was based on allegations that the firm employed unregistered agents and failed to establish and enforce adequate supervisory procedures designed to detect the use of misleading sales material and unregistered agent activity.

The Consent Order directed the firm to pay $30,000 to the department, $20,000 of which constituted an administrative penalty, $5,000 of which represented reimbursement for agency investigative costs and $5,000 of which was allocated to the department's Investor Education Fund. In addition, the firm was required to 1) hire a consultant within 60 days to review the firm's supervisory and compliance procedures and issue a report containing recommendations for improvement; 2) for two years, provide written quarterly reports to the department concerning any securities-related complaints, actions or proceedings involving Connecticut residents; 3) for two years, limit its Connecticut broker-dealer activity conducted on behalf of non-accredited investors to securities listed on the New York Stock Exchange, the American Stock Exchange and/or the National Market System of NASDAQ, corporate debt securities, municipal securities, investment company securities, United States government securities and insurance products regulated by the Connecticut Insurance Commissioner; and 4) pay the costs, not to exceed $2,500 of one or more examinations to be conducted by the department within 24 months following the entry of the Consent Order.

SECTION 36a-425 APPLICATION

On July 9, 1999, an application was filed by First American Corporation, a Tennessee corporation, to establish an office of its subsidiaries, INVEST Financial Corporation, a Delaware corporation, and INVEST Financial Corp. Insurance Agency Inc. of CT, a Connecticut corporation, at 25 Wells Road, Wethersfield, Connecticut.

CREDIT UNION ACTIVITY

Pursuant to the provisions of subsections (g) and (h) of Section 36a-437 of the Connecticut General Statutes, on June 28, 1999, approval was granted to the United Credit Union of Norwalk, Inc. to amend its certificate of organization and bylaws to expand its field of membership to include alumni of Norwalk High School, Briggs High School, and Brien McMahon High School that reside in Fairfield County, CT.

Dated: Tuesday, July 13, 1999

John P. Burke
Banking Commissioner