DOB: News Bulletin 1896 - June 23, 2000

The Department of Banking News Bulletin 

 Bulletin # 1896
Week Ending June 23, 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.


ORDER FOR HEARING

The hearing scheduled for June 27, 2000 at 9:30 a.m. on the application to organize The Community's Bank has been continued to July 21, 2000 at 10:00 a.m. in Room 50 of the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

REPRESENTATIVE OFFICE

On June 20, 2000, pursuant to Section 36a-428g of the Connecticut General Statutes, The Governor and Company of the Bank of Ireland, with its principal place of business in Dublin, Ireland, filed an application to establish and maintain a representative office at 75 Holly Hill Lane, 3rd Floor, Greenwich, Connecticut.

SECTION 36a-425 APPLICATION

On June 21, 2000, Roslyn Bancorp, Inc., filed an application to establish an office of its subsidiary, Roslyn National Mortgage Corporation, at 15 North Main Street, West Hartford, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Field of Membership

On June 26, 2000, Sikorsky Federal Credit Union filed an amendment to its proposed field of membership which presently includes "Persons who live, work, worship, volunteer, or businesses, partnerships, corporations or organizations located within the state of Connecticut with the specific exclusion of the existing fields of membership of the following credit unions: Amphenol RF Operation Employees Credit Union, Inc., B.M.G. Credit Union, Inc., Bethel Stamford Credit Union, Inc., BrandRex Employees Credit Union, Inc., CocaCola of Hartford Employees Credit Union, Inc., East Haven Municipal Employees Credit Union, Inc., Enbic Company Employees Credit Union, Inc., Harborview Credit Union, Inc., Heim Employees Credit Union, Inc., Taylor & Fenn Co. Employees Credit Union, Inc. and U.S. Baird Employees Credit Union, Inc." to also include out of state employees of current select employee groups and employees of this credit union, persons retired as pensioners or annuitants from the above employment, members of their immediate families, households, and organizations of such persons.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Business Opportunity Sellers Fined $10,000 Jointly and Severally for Unregistered Sales

On June 20, 2000, an Order Imposing Fine was entered against First Resource, Inc. of 55 Skyline Drive, Suite 2200, Lake Mary, Florida; and Home Buyers of America, Inc., Home Buyers Training Corporation and Robert A. Blair, all of 445 West Colonial Drive, Orlando, Florida. The respondents had been the subject of a February 28, 2000 Order to Cease and Desist alleging that they had 1) sold unregistered business opportunities that would enable purchasers to start their own real estate investment business; and 2) failed to inform prospective purchasers that the program was not registered under the Connecticut Business Opportunity Investment Act. The Order to Cease and Desist was made permanent as to respondents Home Buyers of America, Inc., Homebuyers Training Corporation and Robert A. Blair on March 21, 2000 in light of their failure to request a hearing. Similarly, the Order to Cease and Desist was uncontested by respondent First Resources, Inc. and was made permanent on April 5, 2000 as a result.

In fining the respondents $10,000 jointly and severally, the agency found that the respondents sold unregistered business opportunities in violation of Section 36b-67(1) of the Connecticut Business Opportunity Investment Act.

Business Opportunity Seller Fined $10,000 for Registration Violation

On June 20, 2000, an Order Imposing Fine was entered against Ameritel Payphone Distributors, Inc. of 11098 Biscayne Boulevard, Suite 201, North Miami, Florida. The respondent had been the subject of a February 28, 2000 Order to Cease and Desist which became permanent on April 10, 2000 in light of the respondent's withdrawal of its hearing request. The Order to Cease and Desist was based on allegations that from at least 1995, the respondent sold unregistered pay phone business opportunities to at least six Connecticut purchaser-investors.

In imposing a fine of $10,000, the agency found that Ameritel Payphone Distributors, Inc. sold unregistered business opportunities in violation of Section 36b-67(1) of the Connecticut Business Opportunity Investment Act.

Unregistered Broker-dealer and Broker-dealer Agent Each Fined $30,000 for Securities Violation

On June 20, 2000, an Order Imposing Fine was entered against Wellrich & Company of 1660 Hotel Circle North, Suite 205, San Diego, California, and Daryle Ragsdale of the same address. The respondents had been the subject of a January 27, 2000 Order to Cease and Desist which, being uncontested, was made permanent on February 21, 2000. The Order to Cease and Desist had 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 Order to Cease and Desist had also alleged that respondent Ragsdale 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.

In fining respondent Wellrich & Company $30,000, the agency found that the corporation had failed to observe statutory broker-dealer registration, agent registration and securities registration requirements. In fining respondent Ragsdale $30,000, the department found that he violated the antifraud provisions in Section 36b-4(a)(2) of the Connecticut Uniform Securities Act; that he transacted business as an agent absent registration in violation of Section 36b-6(a) of the Act; and that he violated the securities registration requirements in Section 36b-16 of the Act.

Dated: Tuesday, June 27, 2000

John P. Burke
Banking Commissioner