DOB: News Bulletin 1942 - May 11, 2001

The Department of Banking News Bulletin

Bulletin # 1942
Week Ending May 11, 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
5/07/01 People's Bank
Bridgeport
1692 East Main Street
Torrington, CT 06790
opening
date
5/10/01 People's Bank
Bridgeport
*Stop & Shop Supermarket
  Stillson Road and Route 69
  Waterbury, CT 06705
approved
5/10/01 Salisbury Bank and Trust
  Company, Lakeville
94 Main Street
North Canaan, CT 06018
approved
8/17/01 The Savings Institute
Willimantic
66 Route 32
Franklin, CT 06254
closing
date
* Limited Branch

SALE OF BRANCH

On May 9, 2001, pursuant to Section 36a-145(h) of the Connecticut General Statutes, approval was granted to People's Bank, Bridgeport, Connecticut, to sell its branch located at 94 Main Street, North Canaan, Connecticut, to Salisbury Bank and Trust Company, Lakeville, Connecticut.

CONVERSION

On May 9, 2001, pursuant to Section 36a-137 of the Connecticut General Statutes, approval was granted to Southington Savings Bank, Southington, Connecticut, to convert from a capital stock savings bank to a bank and trust company.

CHECK CASHING SERVICE LICENSE ACTIVITY

On May 10, 2001, pursuant to Section 36a-581 of the Connecticut General Statutes, Laroussi Samy received approval to operate a check cashing service general facility at 3851 Main Street, Bridgeport, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Pennsylvania Firm Ordered to Cease and Desist;
Notice of Intent to Fine Issued

On May 8, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against Child Care Choices, Inc. of 15050 Carter Road, Philadelphia, Pennsylvania. The action alleged that from at least June 2000, the corporation offered and sold an unregistered child care provider network business opportunity in violation of Section 36b-67(1) of the Connecticut Business Opportunity Investment Act. The Order to Cease and Desist and Notice of Intent to Fine also claimed that the respondent 1) failed to provide a disclosure statement to purchaser-investors prior to the signing of the business opportunity contract or the receipt of money in violation of Section 36b-63(a) of the Act; and 2) failed to provide purchaser-investors with a disclosure statement that complied with Section 36b-63 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 July 10, 2001.

Investment Adviser Assessed $14,000 for Registration
and Notice Filing Violations

On May 10, 2001, the Commissioner executed a Stipulation and Agreement with respect to Northeast Financial Consultants, Inc., an SEC-registered investment adviser having its principal office at 244 Saugatuck Avenue, Westport, Connecticut. The Stipulation and Agreement alleged that at various times between 1984 and 2001, the firm transacted business as an investment adviser absent registration under Section 36b-6(a) of the Connecticut Uniform Securities Act and failed to make the investment advisory notice filing required by Section 36b-6(e) of the Act on and after October 1, 1997.

Without admitting or denying the Commissioner's allegations, the firm agreed to 1) revise and implement such supervisory and compliance procedures as were necessary to ensure compliance with state notice filing requirements; and 2) pay $14,000 to the department, $10,000 of which constituted a monetary penalty, $2,500 of which represented reimbursement for past due registration and notice filing fees and $1,500 of which constituted reimbursement for Division investigative costs.

Ex-Broker Dealer Agent Ordered to Cease and Desist from
Regulatory Violations; Notice of Intent to Fine Issued

On May 10, 2001, the Commissioner entered an Order to Cease and Desist and Notice of Intent to Fine against W. Peter Massman of Westport, Connecticut. The action alleged that respondent Massman, formerly a broker-dealer agent of Nutmeg Securities, Ltd. from June 30, 1994 to March 31, 1997, sold unregistered promissory notes of Lighthouse Two Corporation, Prime Time Investments, Inc. and Prime Time Leasing & Financial Services Corporation. The sales occurred during the respondent's association with Nutmeg Securities, Ltd. and continued after his departure from the firm. The Order to Cease and Desist and Notice of Intent to Fine also claimed that the respondent violated Section 36b-31-6e of the Regulations under the Connecticut Uniform Securities Act by engaging in private securities transactions absent notice to his employing broker-dealer. In addition, the action alleged that the respondent transacted business as an unregistered agent of issuer in making the note sales.

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 July 24, 2001.

Dated: Tuesday, May 15, 2001

John P. Burke
Banking Commissioner