DOB: News Bulletin 1993 - May 3, 2002

The Department of Banking News Bulletin 

Bulletin # 1993
Week Ending May 3, 2002

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 Written comments will be considered only if they are received within ten days from the date of this bulletin.

State Bank 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
5/01//02 The North American
  Bank & Trust Company
1160 Silas Deane Highway
Wethersfield, CT 06109

Two Stamford Firms Ordered to Cease and Desist from Alleged Violations; Notice of Intent to Fine Issued

On April 29, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation, both of 59 Broad Street, Stamford, Connecticut. The action alleged that, from at least January 2000 forward, the respondents sold unregistered non-exempt securities in the form of contracts on foreign currencies (also known as FOREX investments) in violation of Section 36b-16 of the Connecticut Uniform Securities Act and, in so doing, transacted business as unregistered broker-dealers in violation of Section 36b-6(a) of the Act. In addition, the action claimed that the respondents violated the antifraud provisions in Section 36b-4 of the Act by, among other things, failing to disclose to customers the existence or amount of commissions associated with the transactions; falsely representing to at least one customer that the customer's funds would be insured; falsely representing that the respondents would issue computer generated stop loss orders making the investments low risk; failing to disclose the relationship between the respondents and their various clearing firms; and mailing monthly statements to customers that did not accurately reflect the accounts' true status and transactional history.

The respondents were 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 18, 2002.

Application to Convert

On April 25, 2002, pursuant to Section 36a-469 of the Connecticut General Statutes, Middlesex Federal Credit Union, Middletown, filed an application to convert from a federal credit union to a Connecticut credit union. The proposed field of membership of the converted credit union is: Persons who live, work, worship or attend school in and businesses and other legal entities located in Middlesex County and the towns of Madison, Guilford, Branford, North Branford, Lyme and Old Lyme. This field of membership will also include spouses of persons who died while within the field of membership of this credit union, employees of this credit union, volunteers in the community, members of their immediate family or household, and organizations of such persons.

Dated: Tuesday, May 7, 2002

John P. Burke