DOB: News Bulletin 1996 - May 24, 2002

The Department of Banking News Bulletin 

Bulletin # 1996
Week Ending May 24, 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 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 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
5/24/02 Farmington Savings Bank
Farmington
*88 Scott Swamp Road
  Farmington, CT 06032
filed
* Limited Branch - Special Needs

MONEY ORDER AND TRAVELERS CHECK LICENSE ACTIVITY

On May 21, 2002, pursuant to Section 36a-600 of the Connecticut General Statutes, as amended by Public Act 01-56, Citicorp Electronic Financial Services, Inc. received approval to engage in the business of issuing electronic payment instruments.

CHECK CASHING SERVICE LICENSE ACTIVITY

On May 22, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, I.C. Video & Music, LLC received approval to operate a check cashing service general facility at 32 White Street, Danbury, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
Stamford Firm Ordered to Cease and Desist from
Fraudulent Conduct in Connection With Unregistered
FOREX Investments; Notice of Intent to Fine Issued

On May 22, 2002, the Commissioner issued an Order to Cease and Desist and Notice of Intent to Fine against International Market Consultants, LLC of 2001 West Main Street, Suite 205, Stamford, Connecticut. The action alleged that, from at least November 2000 forward, the respondent, through its agents, transacted business as a broker-dealer absent registration under Section 36b-6(a) of the Connecticut Uniform Securities Act by effecting at least 12 transactions in securities involving contracts on foreign currencies ("FOREX investments"). The action also claimed that the FOREX investments were not registered as required by Section 36b-16 of the Act, and that the respondent employed unregistered agents in contravention of Section 36b-6(b) of the Act. The Order to Cease and Desist and Notice of Intent to Fine also claimed that the respondent violated statutory antifraud provisions by spending almost $41,000 of the $89,692 collected from investors for the FOREX investments on office expenses, personal expenses of the respondent's managers and agents, and fees to an international global events planner.

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 23, 2002.

Stamford Man Ordered to Cease and Desist
From Regulatory Violations in Connection With FOREX
Investment Sales; Notice of Intent to Fine Issued

On May 22, 2002, the Commissioner issued an Order to Cease and Desist and Notice of Intent to Fine against Gregory Katsaros of 29 Hanover Street, Stamford, Connecticut. The action alleged that, from at least November 2000 forward, the respondent represented International Market Consultants, LLC, a broker-dealer, in effecting at least five transactions in securities involving contracts on foreign currencies ("FOREX investments") and that, in so doing, the respondent acted as an unregistered broker-dealer agent in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act. The action also claimed that the FOREX investments were not registered as required by Section 36b-16 of the Act. In addition, the action alleged that the respondent violated statutory antifraud provisions by misrepresenting to one or more customers that he would purchase FOREX investments on their behalf through InterTrade Forex of Kissimmee, Florida when, in actuality, International Market Consultants, LLC, used investor monies to pay office expenses, personal expenses of respondent Katsaros' manager and agents and fees to an international global events planner.

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 July 23, 2002.

Dated: Wednesday, May 29, 2002

John P. Burke
Commissioner