DOB: News Bulletin 1912 - October 13, 2000

The Department of Banking News Bulletin 

 Bulletin # 1912
Week Ending October 13, 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
10/12/00 Liberty Bank
Middletown
*548 Main Street
  Middletown, CT 06457
approved
10/12/00 Farmington Savings Bank
Farmington
117 East Street
Plainville, CT 06010
approved
10/13/00 U.S. Trust Company
Greenwich
*Twin City Executive Suites
  701 Fourth Avenue South
  Minneapolis, Minnesota 55415
filed
* Limited Branch

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Florida Firm Ordered to Cease and Desist
from Regulatory Violations; Notice of Intent to Fine Issued

On October 10, 2000, an Order to Cease and Desist and Notice of Intent to Fine was issued against Palm Beach Investment Group, Inc., now or formerly of 12765 West Forest Hills Boulevard, Suite 1313, Wellington, Florida, 12765 West Forest Hills Boulevard, Suite 1313, West Palm Beach, Florida, and 1395 Woodrow Way, Wellington, Florida. The Order to Cease and Desist and Notice of Intent to Fine alleged that, from at least November, 1998, the corporation sold unregistered stock to Connecticut residents through at least five unregistered agents in violation of Sections 36b-16 and 36b-6(b) of the Connecticut Uniform Securities Act. The Order and Notice also alleged that the corporation violated the antifraud prohibition in Section 36b-4(a)(2) of the Act through representations made by its co-chairman and president, Michael Shuda, and in brochures circulated to investors. Those representations were purportedly false in that they claimed the stock of Palm Beach Investment Group, Inc. was FDIC-insured and that the corporation was capitalized in the amount of $19 million.

The respondent was given an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for December 5, 2000.

Officer of Florida Firm Ordered to Cease and Desist from
Securities Violations Notice of Intent to Fine Issued

On October 10, 2000, an Order to Cease and Desist and Notice of Intent to Fine was issued against Michael Shuda, co-chairman and president of Palm Beach Investment Group, Inc. The Order to Cease and Desist and Notice of Intent to Fine alleged that, from at least November, 1998, Shuda made, or caused to be made, false statements to the effect that the stock of Palm Beach Investment Group, Inc. was FDIC-insured and that the corporation was capitalized in the amount of $19 million. Such conduct, if proven, would constitute a violation of the antifraud prohibition in Section 36b-4(2) of the Connecticut Uniform Securities Act.

The respondent was provided with an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for December 12, 2000.

SECTION 36a-425 APPROVAL

On October 4, 2000, approval was granted to Chittenden Corporation, a Vermont corporation, to establish an office of its subsidiary, Chittenden Connecticut Corporation d/b/a Mortgage Service Center, a Vermont corporation, at 54 Hazard Avenue, Enfield, Connecticut.

Dated: Tuesday, October 17, 2000

John P. Burke
Banking Commissioner