DOB: News Bulletin 1872 - January 7, 2000

The Department of Banking News Bulletin 

 Bulletin # 1872
Week Ending January 7, 2000


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
1/05/2000 Eagle Bank
Everett, Massachusetts
*Business Quarters
  1224 Mill Street
  East Berlin, CT 06037
filed
* Limited Branch - Loan Production Office

DE NOVO BRANCH

On January 5, 2000, Eagle Bank, with its main office located in Everett, Massachusetts, 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 limited branch at 1224 Mill Street, East Berlin, Connecticut. In connection with this application, and with an application pursuant to the provisions of Section 36a-145 (c)(1) of the Connecticut General Statutes, Eagle Bank filed, pursuant to the provisions of Section 36a-34 of the Connecticut General Statutes, a community reinvestment plan which is available for public inspection and comment at the Department of Banking for a period of 30 days.

CREDIT UNION DIVISION ACTIVITY
Merger

Pursuant to Section 36a-470 of the Connecticut General Statutes, on January 3, 2000, Perm-O-Last Employees Credit Union, Inc., Waterbury, filed an application to merge with and into Technology Groups Federal Credit Union, Waterbury.

Pursuant to Section 36a-470 of the Connecticut General Statutes, on January 6, 2000, Backus Hospital Employees Credit Union, Inc., Norwich, filed an application to merge with and into Norwich Pequot Teachers Federal Credit Union, Norwich.

Pursuant to Section 36a-470 of the Connecticut General Statutes, on January 6, 2000, Plainfield Employees Credit Union, Inc., Plainfield, filed an application to merge with and into Connecticut Community Credit Union, Inc., Pawcatuck.

CHECK CASHING SERVICE LICENSE ACTIVITY

Pursuant to the provisions of Section 36a-581 of the Connecticut General Statutes, on January 4, 2000, Connecticut State Check Cashing Services, Inc. applied to operate a check cashing service general facility at 426 Whalley Avenue, New Haven, Connecticut.

SECTION 36a-425 APPROVAL

On January 4, 2000, approval was granted to Citigroup, Inc., a Delaware corporation, to establish an office of its subsidiaries, CitiFinancial, Inc., a Maryland corporation, and CitiFinancial Services, Inc., a Delaware corporation, at Freshwater Commons, 51 Palomba Drive, Enfield, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Notice of Intent to Suspend Registration as a Broker-dealer;
Notice of Intent to Impose Conditions on Broker-dealer Activities;
and Notice of Intent to Fine Issued

On January 5, 2000, a Notice of Intent to Suspend the broker-dealer registration of Gilford Securities, Inc. was issued. On the same day, a Notice of Intent to Impose Conditions on the firm's broker-dealer activities and a Notice of Intent to Fine were issued. The firm maintains its principal place of business at 850 Third Avenue, 14th Floor, New York, New York.

Administrative proceedings were initiated based on allegations that the firm had violated a July 10, 1996 Consent Order by selling securities of C2i Solutions, Inc. to the public without distributing at least 30 percent of the issue to one or more unaffiliated selling groups. Gilford Securities, Inc. served as sole underwriter for the initial public offering of C2i Solutions, Inc. securities as well as market maker. The firm was afforded an opportunity to request a hearing on the Notice of Intent to Suspend Registration and the Notice of Intent to Impose Conditions. A hearing on the Notice of Intent to Fine has been scheduled for February 24, 2000.

Florida Firm Ordered to Cease and Desist from Regulatory Violations

On January 3, 2000, an Order to Cease and Desist was entered against Sebastian International Entertainment, Inc. of 105 Markham Court, Longwood, Florida. The Order to Cease and Desist was based on allegations that, from at least January 1998 forward, the company, through two unlicensed agents, sold unregistered promissory notes in excess of $1.8 million to at least 30 Connecticut customers in violation of the Connecticut Uniform Securities Act. The respondent was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist.

Florida Firm Ordered to Cease and Desist from Unregistered Note Sales

On January 3, 2000, an Order to Cease and Desist was entered against World Vision Entertainment, Inc., a corporation having its principal office at 417 Whooping Loop, Suite 1737, Altamonte Springs, Florida. The Order to Cease and Desist claimed that, from at least January 1998, the company, through two unlicensed agents, sold unregistered promissory notes in excess of $690,000 to at least 30 Connecticut customers in violation of the Connecticut Uniform Securities Act. The respondent was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist.

Dated: Tuesday, January 11, 2000

John P. Burke
Banking Commissioner