DOB: News Bulletin 1939 - April 20, 2001

The Department of Banking News Bulletin 

 Bulletin # 1939
Week Ending April 20, 2001

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, Commissioner of Banking, 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
4/16/01 Liberty Bank
Middletown
FROM: 193 East High Street
          East Hampton, CT 06424
TO:     2 West High Street
          East Hampton, CT 06424
filed to
relocate
4/16/01 Rockville Bank
Rockville
341 Broad Street
Manchester, CT 06040
approved
4/16/01 Cornerstone Bank
Stamford
223 Westport Avenue
Norwalk, CT 06851
approved
4/16/01 Cornerstone Bank
Stamford
* 128 East Avenue
   Norwalk, CT 06851
approved
4/16/01 First International Bank
Hartford
**812 Moorefield Park Drive
    Suite 204
    Richmond, Virginia 23236
approved
4/18/01 The Guilford Savings Bank
Guilford
61 North Main Street
Branford, CT 06405
opening
date
* Limited Branch
** Limited Branch - Loan Production Office

NEW BANK ACTIVITY
Application to Organize a Community Bank

Pursuant to Section 36a-70 of the Connecticut General Statutes, on April 20, 2001, an application was filed by the organizer of Higher One Bank for the establishment of a bank and trust company in New Haven, Connecticut, to operate as a community bank. The organizer and spokesperson is Mark Volchek, 122 Court Street, New Haven, Connecticut 06511, (203) 776-7776.

ACQUISITION

On April 16, 2001, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by The Phoenix Companies, Inc. of 100 percent of the voting securities of Phoenix Home Life Mutual Insurance Company and, indirectly, of Phoenix Charter Oak Trust Company and the acquisition of 100 percent of the voting securities of the Phoenix Charter Oak Trust Company by Newco, a to be formed indirect wholly-owned subsidiary of the Phoenix Companies, Inc.

ACQUISITION AND MERGER

On April 18, 2001, pursuant to Sections 36a-70(p), 36a-125 and 36a-184 of the Connecticut General Statutes, Connecticut Bancshares, Inc., a Delaware corporation, and its wholly-owned subsidiary The Savings Bank of Manchester, a Connecticut bank, filed an application for the acquisition of First Federal Savings and Loan Association of East Hartford, a federal savings association, through the establishment of an interim Connecticut bank as a subsidiary of The Savings Bank of Manchester, to be known as The Interim Savings Association of Manchester, the merger of The Interim Savings Association of Manchester with and into First Federal Savings and Loan Association of East Hartford, and the subsequent merger of First Federal Savings and Loan Association of East Hartford with and into The Savings Bank of Manchester. In connection with the application, Connecticut Bancshares, Inc. and The Savings Bank of Manchester filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.

SECTION 36a-425 APPROVAL

On April 19, 2001, approval was granted to Citigroup Inc., a Delaware corporation, to maintain an office of EAB Mortgage Company, Inc. and EAB Credit Corp., both New York corporations and subsidiaries of European American Bank, a New York chartered bank, after the consummation of the merger of European American Bank with and into Citibank, N.A., a national banking association, which is a subsidiary of Citigroup Inc. EAB Mortgage Company, Inc. and EAB Credit Corp. will continue to operate at 101 Merritt 7 Corporate Park, Norwalk, Connecticut.

CHECK CASHING SERVICE LICENSE ACTIVITY

Pursuant to Section 36a-581 of the Connecticut General Statutes, on April 16, 2001, Laroussi Samy filed an application to operate a check cashing service general facility at 3851 Main Street, Bridgeport, Connecticut.

SALE OF BRANCH

Pursuant to Section 36a-145(h) of the Connecticut General Statutes, on April 19, 2001, People's Bank, Bridgeport, Connecticut, requested approval to sell its branch located at 94 Main Street, Canaan, Connecticut, to Salisbury Bank and Trust Company, Lakeville, Connecticut.

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

On April 17, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against John A. Thompson of Brooklyn, Connecticut. The action alleged that, from at least July 1998 forward, the respondent sold unregistered non-exempt promissory notes of Pacific Air Transport, Inc., Redbank Petroleum, Inc., Taormina Omne SRL, Tri-National Development Corp. and Caffe Diva Group, Ltd. to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act. In selling the promissory notes, the respondent also purportedly acted as an unregistered agent of issuer in violation of Section 36b-6(a) of the Act.

The respondent was afforded 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 June 5, 2001.

Order to Cease and Desist and
Notice of Intent to Fine Issued Against Florida Company

On April 20, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against ALumaLex, Inc. of 2900 S.W. 60th Avenue, Ocala, Florida. The action alleged that from at least April 1997, the respondent sold unregistered, non-exempt ALumaLex/Auto Shutter promissory notes to the Connecticut investing public through at least two unregistered agents of issuer. Such conduct purportedly violated Sections 36b-16 and 36b-6(b) of the Connecticut Uniform Securities Act.

The respondent was afforded 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 June 5, 2001.

Order to Cease and Desist and
Notice of Intent to Fine Issued Against Local Promissory Notes Seller

On April 20, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against Arthur L. Bisson of Meriden, Connecticut. The Order to Cease and Desist and Notice of Intent to Fine claimed that from at least February 1997, the respondent sold unregistered non-exempt promissory notes and preferred stock to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act. The promissory notes were issued by World Vision Entertainment, Inc., Lifeblood Biomedical, Inc., Canko Environmental Technologies, Inc., Redbank Petroleum, Inc., Tri-National Development Corp., ALumaLex, Inc. and Technical Support Services, Inc. The preferred stock was issued by Palm Beach Investment Group. The action also alleged that, in selling the securities, the respondent transacted business as an unregistered agent of issuer in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act.

The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been set for June 19, 2001.

California Firm Ordered to Cease and Desist from Securities Violations;
Notice of Intent to Fine Issued

On April 17, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against Tri-National Development Corp. of 480 Camino Del Rio South, Suite 140, San Diego, California. The Order to Cease and Desist and Notice of Intent to Fine alleged that, from at least April 1999 forward, the respondent sold unregistered non-exempt promissory notes to at least seventeen Connecticut investors through at least four unregistered agents of issuer in violation of Sections 36b-16 and 36b-6(b) of the Connecticut Uniform Securities Act.

The respondent was afforded 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 June 5, 2001.

Dated: Tuesday, April 24, 2001

John P. Burke
Banking Commissioner