DOB: News Bulletin 1998 - June 7, 2002

The Department of Banking News Bulletin 

Bulletin # 1998
Week Ending June 7, 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
6/04/02 Farmington Savings Bank
Farmington
*88 Scott Swamp Road
  Farmington, CT 06032
approved
6/05/02 The North American Bank
   & Trust Company
Waterbury
1160 Silas Deane Highway
Wethersfield, CT 06109
approved
6/06/02 Union Savings Bank
Danbury
FROM: 247 Federal Road
          Brookfield, CT  06804
TO:     828-834 Federal Road
          Brookfield, CT  06804
filed to
relocate
* Limited Branch - Special Needs

NEW BANK ACTIVITY

On June 7, 2002, pursuant to Section 36a-70(i) of the Connecticut General Statutes, upon the application filed on May 9, 2002 by the organizers of Connecticut River Community Bank, and after a hearing, the Commissioner extended for cause the period for which the Temporary Certificate of Authority is valid from June 14, 2002 to February 14, 2003.

MAIN OFFICE RELOCATION

On June 4, 2002, pursuant to Section 36a-81 of the Connecticut General Statutes, Ridgefield Bank filed an application to relocate its main office from 374 Main Street, Ridgefield, Connecticut, to 150 Danbury Road, Ridgefield, Connecticut.

ACQUISITION

On June 6, 2002, pursuant to 36a-184 of the Connecticut General Statutes, an acquisition statement was filed by Gordon Gund-Grant Gund Trust and Gordon Gund-G. Zachary Gund Trust to acquire more than 10% but less than 25% of the voting securities of Connecticut River Community Bank, a Connecticut bank (in organization).

CHECK CASHING SERVICE LICENSE ACTIVITY


On June 5, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, Pro-Check Cashing, LLC received approval to operate a check cashing service general facility at 273 West Main Street, Meriden, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
Investment Adviser Assessed $2,250 for
Failure to File Investment Advisory Notice

On June 3, 2002, the Commissioner entered into a Stipulation and Agreement with EAI Partners LP of 200 Connecticut Avenue, Norwalk, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement claimed that from 1997 until April 11, 2002, when a notice was filed, the firm failed to make the investment advisory notice filing required by Section 36b-6(e) of the Connecticut Uniform Securities Act and pay the related fees. The Stipulation and Agreement required that the firm pay $2,250 to the department. Of that amount $1,500 constituted an administrative fine and $750 constituted reimbursement for past due notice filing fees.

Investment Adviser Assessed $2,100 for
Failing to File Investment Advisory Notice

On June 3, 2002, the Commissioner entered into a Stipulation and Agreement with Investment Solutions Inc. of 263 Tresser Boulevard, Tenth Floor, Stamford, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement alleged that from August 25, 1998 until March 12, 2002, when a notice was filed, the firm failed to make the investment advisory notice filing required by Section 36b-6(e) of the Connecticut Uniform Securities Act and pay the related fees. The Stipulation and Agreement required that the firm pay $2,100 to the department. Of that amount $1,500 constituted an administrative fine and $600 constituted reimbursement for past due notice filing fees.

Consent Order Conditioning Registration
as an Investment Adviser Issued

On June 3, 2002, the Commissioner issued a Consent Order under the Connecticut Uniform Securities Act conditioning the registration of Charles Edward Dear as an investment adviser. Charles Edward Dear, who does business under the name "Soundview Financial Management", maintains a business address at 35 Boston Street, #6, Guilford, Connecticut. The Consent Order alleged that Dear 1) violated Section 36b-6(c) of the Act by transacting business as an unregistered investment adviser from January 1, 1998 forward; 2) violated Section 36b-6(c) of the Act by engaging unregistered investment adviser agents; and 3) violated Section 36b-5(a)(2) of the Act by representing in disclosure statements provided to clients that he had been registered as an investment adviser in Connecticut since 1992 when that was not the case. Dear had been the subject of a June 7, 1993 Stipulation and Agreement with the department based on allegations of unregistered investment advisory activity.

The Consent Order Conditioning Registration as an Investment Adviser required that Dear retain an independent consultant to evaluate the adequacy of his internal procedures covering investment adviser registration and compliance, and to prepare a written report on those procedures. The Consent Order also directed Dear to remit $18,900 to the department. Of that amount, $10,000 constituted an administrative fine for violating the 1993 Stipulation and Agreement with the agency; $5,000 constituted an administrative fine for failing to register as an investment adviser from January 1, 1998 through December 2001 and for engaging unregistered investment adviser agents; $1,400 represented reimbursement for past due registration fees; and $2,500 constituted reimbursement for agency investigative costs. In addition, the Consent Order required that Dear 1) cease and desist from regulatory violations; 2) notify existing clients in writing that a conditional order had been entered and provide clients with information on obtaining a copy of the order; 3) file quarterly reports with the department for two years describing any securities-related complaints, actions or proceedings involving Connecticut residents; and 4) refrain from hiring, engaging or contracting for the services of any individual to solicit investment advisory business or render investment advisory services for compensation on Dear's behalf for 36 months.

Investment Adviser Assessed $1,500 for
Investment Advisory Notice Filing Lapse

On June 7, 2002, the Commissioner entered into a Stipulation and Agreement with Northern Trust Global Advisors Inc. of 300 Atlantic Street, Suite 400, Stamford, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement alleged that from 1997 until March 27, 2002, when a notice was filed, the firm failed to make the investment advisory notice filing required by Section 36b-6(e) of the Connecticut Uniform Securities Act. The Stipulation and Agreement acknowledged that, in making the required notice filing, the firm had remitted payment for current and past due notice filing fees. Pursuant to the Stipulation and Agreement, the firm agreed to pay a monetary penalty of $1,500 to the department.

Notice of Intent to Cancel Registration as Broker-dealer Issued

On June 7, 2002, the Commissioner issued a Notice of Intent to Cancel the broker-dealer registration of Ameritrust Securities, Inc. The firm has its principal place of business at 76 Blinkoff Court, Torrington, Connecticut. The Notice of Intent to Cancel Registration was based on the firm's alleged cessation of securities business. In issuing the Notice, the Commissioner noted that 1) the registration of the respondent's sole agent, Seong Y. Lee, had been declared inactive by the NASD on January 10, 2001; 2) that an examination of respondent conducted on December 20, 2001 revealed no securities business being conducted from respondent's address; 3) that the NASD had suspended the respondent on January 4, 2002 for failing to file an annual audit report; and 4) the NASD had no record of the respondent having retained a clearing broker for transacting brokerage business.

The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Cancel Registration.

Notice of Intent to Cancel Registration as Agent Issued

On June 7, 2002, the Commissioner issued a Notice of Intent to Cancel the registration of Seong Y. Lee as an agent of Ameritrust Securities, Inc. The firm has its principal place of business at 76 Blinkoff Court, Torrington, Connecticut. The Notice of Intent to Cancel Registration was based on respondent Lee's alleged cessation of securities-related activity. In issuing the Notice, the Commissioner noted that the registration of respondent Lee had been declared inactive by the NASD on January 10, 2001.

The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Cancel Registration.

Broker-dealer Fined $12,500

On June 7, 2002, the Commissioner entered a Consent Order with respect to LH Ross & Company, Inc. of 2255 Glades Road, Suite 425W, Boca Raton, Florida. The firm had been the subject of a February 25, 2002 Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine. The Consent Order resolved the allegations in the prior Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine.

In entering the Consent Order, the Commissioner found that the respondent concealed material information from, and made false or misleading statements to, agency staff during the course of an investigation and examination by destroying an index card, replacing the card with another containing altered information and misrepresenting that the altered card was the original. The Commissioner also found that the respondent 1) engaged in dishonest or unethical practices by employing two "cold callers" who were not registered with the NASD; 2) wilfully violated Section 36b-6(b) of the Connecticut Uniform Securities Act by employing agents who were not registered under the Act; 3) sold unregistered non-exempt securities to Connecticut customers in violation of Section 36b-16 of the Act; and 4) wilfully violated Section 36b-31-6f(b) of the Regulations under the Act by failing to establish, enforce and maintain adequate supervisory procedures.

The Consent Order fined the firm $12,500 and directed that it file quarterly reports for two years concerning any securities-related complaints, actions or proceedings, including arbitrations, that affected Connecticut residents. In addition, the Consent Order required that the firm reimburse the department up to $2,500 for the costs associated with one or more examinations of the firm's offices to be conducted within 24 months.


Dated: Tuesday, June 11, 2002

John P. Burke
Commissioner