DOB: News Bulletin 1915 - November 3, 2000

The Department of Banking News Bulletin 

Bulletin # 1915
Week Ending November 3, 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
10/31/00 U.S. Trust Company
Greenwich
*Twin City Executive Suites
  701 Fourth Avenue South
  Minneapolis, Minnesota 55415
approved
10/31/00 Chelsea Groton
   Savings Bank
Norwich
FROM: 42 Town Street
          Norwich, CT 06360
TO:     50 Town Street
          Norwich, CT 06360
approved
to relocate
11/01/00 People's Bank
Bridgeport
*Stop & Shop
  677 West Main Street
  New Britain, CT 06053-3969
approved
11/01/00 People's Bank
Bridgeport
*Stop & Shop
  12 Franklin Street
  Seymour, CT 06483
approved
* Limited Branch

NAME CHANGE

Pursuant to Section 36a-82 of the Connecticut General Statutes, on October 30, 2000, approval was granted to The Savings Bank of Rockville, Rockville, to change its name to Rockville Bank.

MONEY ORDER AND TRAVELERS CHECK LICENSE ACTIVITY

On October 30, 2000, pursuant to Section 36a-600 of the Connecticut General Statutes, American Payment Systems, Inc. filed an application to engage in the business of receiving money for transmitting the same.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Nebraska Firm Assessed $17,500 for Supervisory Lapses

On October 30, 2000, a Consent Order was entered with respect to Securities America, Inc. of 7100 West Center Road, Suite 500, Omaha, Nebraska. The Consent Order alleged that the firm failed to properly supervise the activities of Boutros Mansour, an ex-agent, who purportedly offered and sold non-existent arbitrage and hedge investment opportunities to Connecticut residents in violation of firm policies. Mansour had been the subject of an April 15, 1999 Order to Cease and Desist by the department. The Order to Cease and Desist had become permanent on June 29, 1999. Mansour is currently facing criminal charges based on larceny in the first degree, fraud in connection with the sale of securities and the sale of unregistered securities.

The Consent Order required that the firm pay the department $17,500. Of that amount, $10,000 constituted an administrative fine, $5,000 represented reimbursement for agency investigative costs and $2,500 was to be allocated to the Securities and Business Investments Division's enforcement activities and investor education programs. In addition, the Consent Order mandated that the firm 1) conduct examinations of all Connecticut branch offices by June 30, 2001, and 2) with the assistance of counsel, submit a written report to the department describing modifications the firm would make to its supervisory system and the timetable for implementing those changes.

Investment Adviser Fined $5,000 for Late Notice Filing

On October 30, 2000, the Banking Commissioner entered into a Stipulation and Agreement with Columbus Circle Investors, an investment adviser registered with the Securities and Exchange Commission and having its principal office at Metro Center, One Station Place, Stamford, Connecticut. The Stipulation and Agreement alleged that, for calendar year 2000, the firm had been delinquent in making the investment advisory notice filing and paying the fee required by Section 36b-6(e) of the Connecticut Uniform Securities Act.

In entering into the Stipulation and Agreement, Columbus Circle Investors represented to the agency that 1) the firm had retained legal counsel to assist it in improving its internal compliance systems; 2) the firm would hire a third party filing service prior to year-end to ensure that state filings were made in a timely manner; and 3) the firm would hire a chief administrator and compliance officer by March 1, 2001 to implement and manage a general regulatory compliance system. The Stipulation and Agreement directed the firm to pay a $5,000 monetary penalty in resolution of the matter.

Broker-dealer Fined $10,000; Registration Denied

On October 30, 2000, the Banking Commissioner issued Findings of Fact, Conclusions of Law and an Order denying the broker-dealer registration of First Global Securities, Inc. and fining the firm $10,000. The firm is located at 790 East Colorado Boulevard, Suite 500, Pasadena, California. The agency's action was based on findings that the firm 1) withheld material information concerning its past trading activity from the department; 2) filed a materially incomplete application for broker-dealer registration; and 3) wilfully transacted business as a broker-dealer in Connecticut absent registration under the Connecticut Uniform Securities Act. In addition, the department found that the firm was the subject of an October 5, 1999 NASD fine predicated on the firm's failure to maintain minimum net capital and designate a registered financial operations principal. A further basis for action was the NASD's October 5, 1999 suspension and fining of the firm's president, Noble Trenham. The firm had been the subject of a May 8, 2000 Order to Cease and Desist which was uncontested and became permanent on May 27, 2000.

SECTION 36a-425 APPROVAL

On November 2, 2000, approval was granted to Mellon Financial Corporation, a Pennsylvania corporation, to establish an office of its subsidiary, ChaseMellon Shareholder Services, L.L.C., a New Jersey limited liability company, at 111 Founders Plaza, 11th Floor, East Hartford, Connecticut.

FOREIGN BANK ACTIVITY

On November 1, 2000, pursuant to Section 36a-428a of the Connecticut General Statutes, as amended by P.A. 99-33, Société Générale, a banking organization organized under the laws of the Republic of France, with its principal place of business in Paris La Defense Cedex, France, filed an application to establish and maintain a state agency at 660 Steamboat Road, 3rd Floor, Greenwich, Connecticut.

ACQUISITION

On October 24, 2000, pursuant to Section 36a-185 of the Connecticut General Statutes, the Banking Commissioner issued a notice of intent not to disapprove the indirect acquisition by NewMil Bancorp, Inc., of all of the outstanding voting securities of Nutmeg Federal Savings and Loan Association, a capital stock federal savings and loan association.

Dated: Tuesday, November 7, 2000

John P. Burke
Banking Commissioner