DOB: News Bulletin 1958 - August 31, 2001

The Department of Banking News Bulletin 

Bulletin # 1958
Week Ending August 31, 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.


BRANCH ACTIVITY
State Bank

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
8/31/01 Jewett City Savings Bank
Jewett City
FROM:  28 Main Street
           Jewett City, CT 06351
TO:      111 Main Street
           Jewett City, CT 06351
filed to
relocate

MAIN OFFICE RELOCATION

On August 31, 2001, pursuant to Section 36a-81 of the Connecticut General Statutes, Phoenix Charter Oak Trust Company filed an application to relocate its main office from 38 Prospect Street, Hartford, Connecticut, to One American Row, Hartford, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Sharon Man Assessed $3,500; Barred for 5 Years
From Securities-Related Activity

On August 31, 2001, the Commissioner issued a Consent Order with respect to Bruce I. Harlan of Sharon, Connecticut. The Consent Order alleged that from July 1998 to October 1999, the respondent sold unregistered non-exempt promissory notes of Sebastian International Enterprises, Inc. and World Vision Entertainment, Inc. to Connecticut residents, and, in so doing, transacted business as an unregistered agent of issuer in contravention of Section 36b-6(a) of the Connecticut Uniform Securities Act.

The Consent Order barred the respondent for five years from transacting business in or from Connecticut as a broker-dealer, investment adviser, agent of issuer, broker-dealer agent, investment adviser agent or seller of business opportunities. In addition, the Consent Order directed the respondent to cease and desist from regulatory violations, and mandated that he pay $3,500 to the department, $3,000 of which constituted an administrative fine and $500 of which represented reimbursement for agency investigative costs.

New York Firm Prohibited from Seeking Connecticut Broker-dealer
or Investment Adviser Registration for Seven Years;
Assessed $17,500; Cease and Desist Order Made Permanent

On August 31, 2001, the Commissioner entered a Consent Order with respect to Pond Securities Corp. of 4522 Fort Hamilton Parkway, Brooklyn, New York. The firm had been the subject of an April 2, 2001 Notice of Intent to Deny Registration as Broker-dealer, Order to Cease and Desist and Notice of Intent to Fine.

The Consent Order asserted that, following the initiation of administrative proceedings, the department had conducted an investigation to determine if the firm was complying with the April 2, 2001 Order to Cease and Desist. The Consent Order averred that, in conjunction with that investigation, the firm failed to produce relevant documents and records when requested to do so by Division staff during an on-site investigation of the firm's offices.

In consenting to the entry of the order, the firm agreed to findings by the Commissioner that 1) three sanctions by the NASD and a March 4, 1999 revocation action by the State of Maryland would support the denial of the firm's registration under Sections 36b-15(a)(2)(F)(iii) and 36b-15(a)(2)(F)(i) of the Connecticut Uniform Securities Act; 2) the firm had wilfully violated Sections 36b-6(a) and 36b-6(b) of the Act by transacting business as a broker-dealer while unregistered and employing unregistered agents; 3) the firm had wilfully violated Section 36b-23 of the Act by filing a materially false or misleading document with the Commissioner concerning the extent of its prior brokerage activity in the state; and 4) the firm wilfully violated Section 36b-26(b) of the Act by failing to produce relevant documents and records to Division staff when requested during the course of an investigation.

The Consent Order required that the firm withdraw its broker-dealer application and not reapply for registration as a broker-dealer or investment adviser in the state for seven years. The Consent Order also directed the firm to pay $17,500 to the department, $15,000 of which constituted an administrative fine and $2,500 of which represented reimbursement for Division investigative costs. In addition, the Consent Order rendered the April 2, 2001 Order to Cease and Desist permanent, effective August 31, 2001. Finally, the Consent Order provided that, if the firm violated the April 2, 2001 Order to Cease and Desist, an additional fine of $10,000 would be imposed, and the firm would be responsible for paying for all administrative costs associated with the related investigation, examination and hearing.

Simsbury Firms Assessed $15,000 Jointly and Severally for
Investment Advisory Notice Filing Violations

On August 31, 2001, the Commissioner executed a Stipulation and Agreement with respect to Landmark Advisers Inc., Landmark Equity Advisors LLC and Landmark Realty Advisors LLC, all of 10 Mill Pond Lane, Simsbury, Connecticut. The entities, which are affiliated, are registered as investment advisers with the Securities and Exchange Commission. The Stipulation and Agreement alleged that at various times between October 1, 1997 and March 2001, when appropriate notice filings were made, the entities failed to make the investment advisory notice filing required by Section 36b-6(e) of the Connecticut Uniform Securities Act and pay the annual fees.

Without admitting or denying the Commissioner's allegations, the respondents agreed to 1) refrain from violating the notice filing and fee payment provisions of Section 36b-6(e) of the Act; 2) implement such supervisory and compliance procedures as were necessary to ensure compliance with state investment advisory notice filing requirements; and 3) remit $15,000 to the department, jointly and severally. Of the $15,000 imposed, $10,000 constituted an administrative fine, $2,500 represented past due notice filing fees; $1,500 constituted reimbursement for Division investigative costs; and $1,000 would be applied to cover the cost of a written notice distributed by the department to SEC-registered investment advisers notifying such advisers of their statutory obligation to make a notice filing under the Act before transacting business in Connecticut.

Darien Firm Assessed $6,000 for Investment Advisory Notice Filing Violations

On August 31, 2001, the Commissioner executed a Stipulation and Agreement with respect to Portfolio Advisors LLC, an SEC-regulated investment adviser located at 9 Old Kings Highway South, Darien, Connecticut. The Stipulation and Agreement alleged that from July 1, 1997 until July 10, 2001, the respondent violated Section 36b-6(e) of the Connecticut Uniform Securities Act by failing to make the investment advisory notice filing and pay the annual fees required by that section. The Stipulation and Agreement noted that on July 10, 2001, the respondent did file the notice and remit the fee required for calendar year 2001.

Without admitting or denying the Commissioner's allegations, the respondent agreed to 1) refrain from violating the notice filing and fee payment provisions of Section 36b-6(e) of the Act; 2) implement such supervisory and compliance procedures as were necessary to ensure compliance with state investment advisory notice filing requirements; and 3) remit $6,000 to the department, $5,000 of which constituted an administrative fine and $1,000 of which represented reimbursement for past due notice filing fees covering the period from 1997 to 2000, inclusive.

Conditional Registrations - Consent Order Conditioning Registration
as a Broker-dealer Issued

On August 31, 2001, the Commissioner issued a Consent Order under the Connecticut Uniform Securities Act conditioning the registration of SFS Capital, LLC as a broker-dealer. SFS Capital, LLC maintains an office at 303 Strawberry Hill Avenue, Norwalk, Connecticut. The Consent Order was predicated on deficiencies in securities-related experience.

Pursuant to the Consent Order, SFS Capital, LLC agreed to 1) restrict its business for thirty months to the purchase, sale and redemption of investment company securities, government securities, exchange-listed options, securities listed on the New York Stock Exchange, the American Stock Exchange and NASDAQ-NMS; corporate debt for which there was an established trading market; and annuities and non-securities insurance products; 2) retain an independent consultant to conduct a compliance audit of the firm's operations one year following the entry of the Consent Order; 3) for thirty months, provide the department with quarterly reports concerning any securities-related complaints, actions or proceedings; and 4) for thirty months, notify the Division in writing within five business days following any change in the firm's officers, control persons or individuals identified in the firm's supervisory procedures manual as having responsibility for regulatory compliance.

Also on August 31, 2001, SFS Capital, LLC became registered as a broker-dealer under the Connecticut Uniform Securities Act.

CONSUMER CREDIT DIVISION ACTIVITY
Order of Summary Suspension, Notice of Intent to Revoke First Mortgage
Lender/Broker License and Notice of Right to Hearing Issued

On August 28, 2001, the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke First Mortgage Lender/Broker License and Notice of Right to Hearing against First Bankers Mortgage Service, Inc., d/b/a FBMS, 1700 N.W. 64th Street, Suite 100, Ft. Lauderdale, Florida. The Commissioner's action was based on a finding that the entity failed to maintain the surety bond required by Section 36a-492 of the Connecticut General Statutes.

Order of Summary Suspension, Notice of Intent to Revoke First Mortgage
Lender/Broker License and Notice of Right to Hearing Issued

On August 28, 2001, the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke First Mortgage Lender/Broker License and Notice of Right to Hearing against Charter Oak Financial Services LLC, f/k/a Kresmasti LLC d/b/a ASG Financial Services, 227 Knickerbocker Avenue, Stamford, CT. The Commissioner's action was based on a finding that the entity failed to maintain the surety bond required by Section 36a-492 of the Connecticut General Statutes and pay the license application fee required by Section 36a-491 of the Connecticut General Statutes Section.

Dated: Wednesday, September 5, 2001

John P. Burke
Banking Commissioner