DOB: News Bulletin 1862 - October 29, 1999

The Department of Banking News Bulletin 

Bulletin # 1862
Week Ending October 29, 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.


NATIONAL 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
10/15/99 PNC Bank,
  National Association
Pittsburgh, PA
*#125 East Putnam Avenue
    Greenwich, CT 06830
filed
* Limited Branch
# See De Novo Branch

CHECK CASHING SERVICE LICENSE ACTIVITY

Pursuant to the provisions of Section 36a-581(d) of the Connecticut General Statutes, on October 25, 1999, approval was granted to Financial Service Centers, Inc. to relocate its check cashing service general facility from 79 North Main Street, South Norwalk, to 80 North Main Street, South Norwalk, Connecticut.

Pursuant to the provisions of Section 36a-581(d) of the Connecticut General Statutes, on October 27, 1999, approval was granted to X-Bankers Money and Mortgages, Inc., to relocate its check cashing service general facility from 809 Chapel Street, New Haven, to 31 Church Street, New Haven, Connecticut.

DE NOVO BRANCH

On October 15, 1999, PNC Bank, National Association, with its main office located in Pittsburgh, Pennsylvania, filed an application pursuant to Section 36a-412(a)(2) of the Connecticut General Statutes, as amended by Public Act 99-33, to establish a de novo branch at 125 East Putnam Avenue, Greenwich, Connecticut.

ACQUISITION AND MERGER

On October 29, 1999, pursuant to Section 36a-185 of the Connecticut General Statutes, the Banking Commissioner issued a Notice of Intent Not to Disapprove the acquisition by Webster Financial Corporation of all of the outstanding voting securities of New England Community Bancorp, Inc. and, indirectly, New England Bank & Trust Company, The Equity Bank and Community Bank. The acquisition will take place through the merger of New England Community Bancorp, Inc. with and into Webster Financial Corporation and the subsequent merger, pursuant to Section 36a-126(b) of the Connecticut General Statutes, of New England Bank & Trust Company, The Equity Bank and Community Bank with and into Webster Bank, a capital stock federal savings bank that is a wholly-owned subsidiary of Webster Financial Corporation.

CREDIT UNION DIVISION ACTIVITY
Subsidiary Office

Date Institution Location Activity
10/20/99
St. Raphael Healthcare
Credit Union, Inc.
3011 Whitney Avenue
Hamden, CT 06518
approved

Mergers

Pursuant to Section 36a-470(a) of the Connecticut General Statutes, on October 26, 1999, G & D Employees Credit Union, Inc., Kensington, applied to merge with and into Dutch Point Credit Union, Inc., Wethersfield.

Pursuant to the provisions of Section 36a-470(a) of the Connecticut General Statutes, on October 29, 1999, The Nielsen Tool & Die Employees Credit Union, Inc., Hartford, applied to merge with and into Hartford Healthcare Credit Union, Inc., Hartford.

Field of Membership Amended

Pursuant to the provisions of Sections 36a-437(g) and (h) of the Connecticut General Statutes, as amended by Public Act 99-36, on October 19, 1999, Cenconn Healthcare Credit Union, Inc. requested approval to amend its bylaws and certificate of organization to expand its field of membership to include employees of the visiting nurses and home care associations operating in the Meriden Metropolitan Area ("Meriden Metropolitan Area" means Meriden, Middletown, Wallingford, Cheshire, Plainville, Southington, New Britain, Cromwell, Middlefield, and Durham); the professional staff having an affiliation with hospitals located in the Meriden Metropolitan Area and contiguous towns, having fewer than 500 employees; members and employees of other care-related services, institutions and/or associations located in the Meriden Metropolitan Area and contiguous towns.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-Dealer Fined $20,000 and
Assessed $5,000 in Costs for Unregistered Branch Office Activity

On October 26, 1999, a Consent Order was entered into with respect to Nationwide Advisory Services, Inc., a registered broker-dealer based at One Nationwide Plaza, Columbus, Ohio. It was alleged that at various times commencing in 1996, the firm had 1) transacted business from several unregistered Connecticut branch offices; 2) failed to notify the department prior to the cessation of business activity at three branch offices, one of which was its Connecticut supervisory branch; 3) failed to promptly notify the Commissioner of managerial changes at eleven Connecticut branch offices; 4) failed to comply with a prior representation that its Connecticut branch offices would be open for inspection by the department; 5) failed to ensure that seven of its supervisory personnel passed a qualifying examination as principal; and 6) failed to establish, maintain and implement an adequate supervisory structure.

The Consent Order fined the firm $20,000 and required that it reimburse the department an additional $5,000 for investigative costs. In addition, the Consent Order required that the firm 1) incorporate into its supervisory and compliance manual a written plan demonstrating that a sufficient, technologically up-to-date mechanism was in place to track the examination histories of its Connecticut agents and to "flag" those who had not passed a product-specific examination or a principal's examination; 2) decentralize its Connecticut operations by establishing an in-state supervisory office; 3) designate an in-state back-up sales officer; and 4) staff each Connecticut branch office with an on-site principal and not seek a waiver from that requirement for two years.

Broker-Dealer Fined $10,000 for Supervisory
Lapses; Unregistered Branch Office Activity

On October 28, 1999, a Consent Order was entered into with respect to Strategic Assets, Inc., a registered broker-dealer having its principal office at 445 Broad Hollow Road, Suite 425, Melville, New York. The action was based on claims that the firm failed to exercise adequate supervisory controls over one James Pabilonia by failing to sufficiently monitor the mailing of a client's check to Pabilonia for delivery to the client and by failing to conduct any on-site examinations of Pabilonia's office during the ten months Pabilonia was associated with the firm. Pabilonia, who was arrested on December 22, 1998, was charged with securities fraud and other counts including larceny, money laundering and racketeering and was the subject of a ten-year bar imposed by the Commissioner on April 6, 1998. The Consent Order also alleged that Strategic Assets, Inc. transacted securities business from an unregistered branch office manned by Pabilonia at 670 Main Street, 4th Floor, Willimantic, Connecticut.

The Consent Order fined the firm $10,000 and directed it to offer investor restitution for losses attributable to Pabilonia's alleged misconduct. In addition, the Consent Order directed the firm to cease and desist from regulatory violations; implement revised supervisory and compliance procedures; and provide quarterly reports to the department for two years concerning any securities-related complaints, actions or proceedings involving Connecticut residents.

Dated: Tuesday, November 2, 1999

John P. Burke
Banking Commissioner