DOB: News Bulletin 2003 - July 12, 2002

The Department of Banking News Bulletin 

Bulletin # 2003
Week Ending July 12, 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.


MONEY ORDER AND TRAVELERS CHECK LICENSE ACTIVITY

On July 9, 2002, pursuant to Section 36a-600 of the Connecticut General Statutes, as amended by Public Act 01-56, BHD Corp. received approval to engage in the business of money transmission.

CREDIT UNION DIVISION ACTIVITY
Field of Membership Expansion

On July 9, 2002, pursuant to Sections 36a-437(g) and (h) of the Connecticut General Statutes, The Stamford Health System Employees Credit Union, Inc., Stamford, Connecticut, requested approval to amend its certificate of organization and bylaws to expand its field of membership to include employees and volunteers of any medical or clinical facility, or any business that is involved in the production, distribution, or sale of products, devices or services related to the medical field in the Stamford Metropolitan Area; "Stamford Metropolitan Area" means Stamford, Greenwich, Norwalk, Darien, and New Caanan.

Settlement Agreement

On July 10, 2002, the Commissioner entered into a Settlement Agreement with Corporate America Family Credit Union ("Corporate America") of 2075 Big Timber Road, Elgin, Illinois. Corporate America had been subject to a May 30, 2002, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that alleged that Corporate America established a branch and added select employee groups in Connecticut, without obtaining prior written approval of the Commissioner in violation of Section 36a-472 of the Connecticut General Statutes. Pursuant to the Settlement Agreement, Corporate America agreed to pay $15,000 to the Department as a civil penalty. Further, for a period of one year from the date of the Settlement Agreement, Corporate America agreed not to establish any additional branches or add any new select employee groups to its field of membership in Connecticut and after the one year period Corporate America agrees not to establish any additional branches or add any new select employee groups to its field of membership in Connecticut without obtaining the prior written approval of the Commissioner as required by Section 36a-472 of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
Investment Adviser Assessed $1,950 for Notice Filing Lapse

On July 10, 2002, the Commissioner entered into a Stipulation and Agreement with Atlantic Advisors LLC of 2 American Lane, Greenwich, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement alleged that from June 18, 1999 until May 29, 2002, when a notice filing was made, 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 associated fees. Pursuant to the Stipulation and Agreement, the firm agreed to pay $1,950 to the agency. Of that amount, $1,500 constituted an administrative fine and $450 represented reimbursement for past due notice filing fees.

Investment Adviser Assessed $1,300 for Notice Filing Delinquency

On July 10, 2002, the Commissioner entered into a Stipulation and Agreement with Aaron Fleck & Associates, L.L.C. of 289 Greenwich Avenue, Second Floor, Greenwich, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement alleged that from approximately November 2000 until April 1, 2002, when a notice filing was made, 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 fee required by that section. Pursuant to the Stipulation and Agreement, the firm agreed to pay $1,300 to the agency. Of that amount, $1,000 constituted an administrative fine and $300 represented reimbursement for past due notice filing fees.

Investment Adviser Assessed $2,250 for Failure to File Advisory Notice

On July 10, 2002, the Commissioner entered into a Stipulation and Agreement with Johnson Custom Strategies, Inc. of 640 West Putnam Avenue, Greenwich, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement claimed that from 1997 until April 1, 2002, when a notice filing was made, 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 associated fees. Pursuant to the Stipulation and Agreement, the firm agreed to pay $2,250 to the agency. Of that amount, $1,500 constituted an administrative fine and $750 represented reimbursement for past due notice filing fees.

New York Man Permanently Barred from Securities-Related Activity;
Order to Cease and Desist Becomes Permanent

On July 10, 2002, the Commissioner entered a Consent Order with respect to Greg W. Botte of 987 Steele Boulevard, Baldwin, New York. The Consent Order resolved allegations against respondent Botte contained in a May 14, 2002 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing issued by the Commissioner. The Order to Cease and Desist and Notice of Intent to Fine had alleged that 1) from at least March 2001 forward, the respondent transacted business as an unregistered broker-dealer agent of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation, both of 59 Broad Street, Stamford, Connecticut; and 2) respondent Botte sold unregistered non-exempt investments involving contracts on foreign currencies (also known as FOREX investments) in Connecticut in violation of Section 36b-16 of the Connecticut Uniform Securities Act.

The Consent Order permanently barred respondent Botte from transacting business in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent. The Consent Order also directed respondent Botte to assist the Securities and Business Investments Division in the division's investigation of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation by, among other things, producing related documents, responding to division inquiries, providing sworn testimony and appearing at any related proceeding brought by the agency. Acknowledging the respondent's demonstrated inability to pay the maximum penalty sought by the Notice of Intent to Fine, the Consent Order fined the respondent $500. Pursuant to the terms of the Consent Order, the May 14, 2002 Order to Cease and Desist against respondent Botte became permanent as of July 10, 2002.

Dated: Tuesday, July 16, 2002

John P. Burke
Commissioner