DOB: News Bulletin 1875 - January 28, 2000

The Department of Banking News Bulletin 

Bulletin # 1875
Week Ending January 28, 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
1/28/00 The Dime Savings Bank
  of Norwich
FROM: 758 Colonel Ledyard Hwy
          Ledyard Center, CT 06339
TO:     744 Colonel Ledyard Hwy
          Ledyard Center, CT 06339
filed to
relocate
2/01/00
Windsor Locks Savings &
  Loan Association
124 Main Street
Broad Brook, CT 06016
opening
date
2/03/00 The Naugatuck Savings
   Bank Naugatuck
363 Main Street South
Southbury, CT 06488
opening
date

CHECK CASHING SERVICE LICENSE ACTIVITY

Pursuant to the provisions of Section 36a-581 of the Connecticut General Statutes, on January 26, 2000, Check Cashing & More received approval to operate a check cashing service general facility at 1219 East Main Street, Bridgeport, Connecticut.

ACQUISITION AND MERGER

On January 24, 2000, pursuant to Section 36a-411 of the Connecticut General Statutes, the Banking Commissioner approved the application and acquisition statement filed by Summit Bancorp to acquire NMBT Corp and, indirectly, to acquire and retain the ownership or control of 100% of the issued and outstanding voting stock of NMBT and, pursuant to Section 36a-125 of the Connecticut General Statutes, for the merger of NMBT with and into Summit Bank. The Commissioner also issued a notice of intent not to disapprove the indirect acquisition by Summit Bancorp of 100% of the beneficial ownership of the issued and outstanding voting stock of NMBT. The approvals and notice of intent not to disapprove are conditioned upon receipt of all approvals required under federal law and certificates from the Secretaries of NMBT Corp, Summit Bank and NMBT that the requisite shareholder approvals have been obtained.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Costa Rican Company Ordered to Cease and Desist
from Regulatory Violations

On January 21, 2000, an Order to Cease and Desist was entered against Global Insurance Company, Ltd. The respondent maintains places of business in San Jose, Costa Rica. According to the Order to Cease and Desist, Global Insurance Company, Ltd. guaranteed certain promissory notes issued by World Vision Entertainment, Inc. and sold those guarantees to at least thirty Connecticut customers through agents of World Vision Entertainment, Inc. The Order to Cease and Desist alleged that the guarantees were not registered under the Connecticut Uniform Securities Act and that, in failing to honor the guarantees with respect to at least twelve defaulted notes, Global Insurance Company violated the Act's antifraud provisions. World Vision had been the subject of a January 3, 2000 Order to Cease and Desist entered by the Commissioner. Respondent Global Insurance Company, Ltd. was provided with an opportunity to request a hearing on the January 21, 2000 Order to Cease and Desist.

Belgium/Switzerland Company Directed to Halt Regulatory Violations

On January 21, 2000, an Order to Cease and Desist was entered against New England International Surety Inc. of 11 Avenue Lloyd George, Brussels, Belgium and 7 Rue des Alpes, Geneva, Switzerland. The Order to Cease and Desist maintained that New England International Surety Inc. guaranteed certain promissory notes issued by Sebastian International Enterprises Incorporated and sold those guarantees to at least thirty Connecticut customers through agents of Sebastian International Enterprises. The Order to Cease and Desist also claimed that the guarantees were not registered under the Connecticut Uniform Securities Act and that, in failing to honor the guarantees with respect to at least nine defaulted notes, New England International Surety Inc. violated the Act's antifraud provisions. Sebastian International Enterprises Incorporated had been the subject of a January 3, 2000 Order to Cease and Desist entered by the Commissioner. New England International Surety Inc. was afforded an opportunity to request a hearing on the January 21, 2000 Order to Cease and Desist.

Broker-dealer Agent Registration Summarily Suspended;
Notice of Intent to Revoke Agent Registration Issued

On January 27, 2000, the registration of Kenneth Michael Klein was summarily suspended as a broker-dealer agent of First Providence Financial Group, LLC. On the same day, a Notice of Intent was issued to revoke respondent Klein's agent registration with that firm. The summary suspension order and the Notice of Intent to Revoke were based on allegations that, during a September 1999 examination of First Providence Financial Group, LLC by the Securities and Business Investments Division, respondent Klein concealed material information by deleting at least twenty files from the firm's computers after agency staff had requested that the firm and its employees maintain the integrity of computer data.

The respondent was provided with an opportunity to request a hearing on the summary suspension order and the Notice of Intent to Revoke.

California Company Ordered to Cease and Desist from
Regulatory Violations; Notice of Intent to Fine Issued

On January 27, 2000, an Order to Cease and Desist, Notice of Right to Hearing and Notice of Intent to Fine was issued against Wellrich & Company of 1660 Hotel Circle North, Suite 205, San Diego, California and Daryle Ragsdale of the same address. In initiating administrative proceedings, the agency claimed that from at least March 1999, Wellrich & Company: 1) transacted business as a broker-dealer absent registration under the Connecticut Uniform Securities Act; 2) employed respondent Ragsdale as an agent while respondent Ragsdale was not registered in that capacity; 3) offered unregistered non-exempt securities of Geenx Corp. to one or more Connecticut customers in alleged violation of Section 36b-16 of the Act; and 4) violated the antifraud provisions of the Act by misrepresenting customer holdings of Geenx securities, the worth of the securities and the incipient nature of a Geenx merger. The action against respondent Ragsdale was based on allegations that he transacted business as an unregistered agent of Wellrich & Company, offered unregistered non-exempt securities of Geenx to at least one Connecticut customer; and violated statutory antifraud provisions by misrepresenting the status of a pending Geenx merger, the amount of Geenx securities held by the customer and the worth of those securities. Both respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Fine relating to both respondents has been scheduled for March 15, 2000.

Dated: Tuesday, February 1, 2000

John P. Burke
Banking Commissioner