DOB: News Bulletin 2007 - August 9, 2002

The Department of Banking News Bulletin

 Bulletin # 2007
Week Ending August 9, 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
08/08/02 People's Bank
Bridgeport
81 Fairfield Road
Storrs, CT 06269
approved
08/08/02 U.S. Trust Company
Greenwich
*1818 Market Street
  Philadelphia, PA 19103
filed
08/09/02 The Dime Savings Bank of Norwich
Norwich
9 Shaw's Cove
New London, CT 06320
filed
* Limited Branch

ACQUISITION

On August 8, 2002, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by Russell H. Fuchs of more than 10 percent but less than 25 percent of the voting securities of the Bank of Westport.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Stamford Firm Ordered to Cease and Desist from
Allegedly Fraudulent Note Sales; Notice of Intent to Fine Issued

On August 2, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Georges Trading Corp., also known as G's Trading Corp., G's Capital Investments, G's Investment Club and B & S Investment Club. The corporation maintains its principal place of business at 800 Summer Street, Suite 207, Stamford, Connecticut. The action alleged that, from at least February 2000 forward, the respondent sold $906,650 of its promissory notes to at least 63 Connecticut investors; that the notes were not registered under Section 36b-16 of the Connecticut Uniform Securities Act; and that the respondent violated Section 36b-6(b) of the Act by employing unregistered agents in selling the notes. In addition, the Order to Cease and Desist and Notice of Intent to Fine claimed that the respondent violated the antifraud provisions of the Act by a) mailing inaccurate account statements to Connecticut investors; b) presenting subsequently dishonored checks to Connecticut investors as refunds; and c) falsely representing that the note proceeds would be invested in the stock market; that the investments were safe, secure and insured; that investors would receive up to 70% in interest per month; that the respondent had 3,000 members in over 5 countries; that respondent had over $2,500,000 in total assets; and that the respondent would pay taxes on the investment returns of certain Connecticut investors. The action further alleged that no investor monies were invested as promised by the respondent, and that, while the respondent had returned approximately $78,939 to investors, the remaining $827,711 had been used to pay the personal expenses of the respondent's president and vice president as well as payroll and office expenses.

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 September 24, 2002.

Bridgeport Man Ordered to Cease and Desist from
Engaging in Fraudulent Note Sales; Notice of Intent to Fine Issued

On August 2, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Gerald Georges, president of Georges Trading Corp. Gerald Georges' last known address is 1431 Iranistan Avenue, 1st Floor, Bridgeport, Connecticut. The action alleged that, from at least February 2000 forward, the respondent effected at least 68 transactions in securities consisting of notes issued by Georges Trading Corp. to at least 45 Connecticut investors, and, in so doing, transacted business as an unregistered agent of issuer in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act. Georges Trading Corp. also does business under the names G's Trading Corp., G's Capital Investments, G's Investment Club and B & S Investment Club. In addition, the action alleged that the notes were not registered under Section 36b-16 of the Connecticut Uniform Securities Act. The Order to Cease and Desist and Notice of Intent to Fine also alleged that the respondent violated the antifraud provisions of the Act by a) failing to honor a personal guarantee he had made to a Connecticut investor that the investor's funds would be returned; b) presenting subsequently dishonored checks to Connecticut investors as refunds; c) mailing an inaccurate statement of account to a Connecticut investor; and d) falsely representing that the note proceeds would be invested in the stock market; that the investments were safe, secure and insured; that investors would receive up to 70% in interest per month; and that Georges Trading Corp. would generate income to cover the cost of taxes on the investments over and above the promised monthly returns when no such taxes were paid. The action further alleged that, while Georges Trading Corp. had returned a fraction of investment monies to Connecticut investors, Connecticut investors never realized the promised returns, and that the bulk of investor money was spent on Gerald Georges' personal expenses, the personal expenses of Georges Trading Corp.'s vice president and on payroll and office costs.

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 September 24, 2002.

Stamford Man Ordered to Cease and Desist from
Engaging in Fraudulent Note Sales; Notice of Intent to Fine Issued

On August 2, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Etienne Decembre, vice president of Georges Trading Corp. Etienne Decembre's last known address is 43 Dora Street, #1, Stamford, Connecticut. The action alleged that, from at least July 2000 forward, the respondent effected at least 23 transactions in securities consisting of notes issued by Georges Trading Corp. to at least 15 Connecticut investors, and, in so doing, transacted business as an unregistered agent of issuer in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act. Georges Trading Corp. also does business under the names G's Trading Corp., G's Capital Investments, G's Investment Club and B & S Investment Club. In addition, the action alleged that the notes were not registered under Section 36b-16 of the Connecticut Uniform Securities Act. The Order to Cease and Desist and Notice of Intent to Fine also alleged that the respondent violated the antifraud provisions of the Act by a) falsely representing that the note proceeds would be invested in the stock market; that the investments were safe, secure and insured; that investors would receive up to 70% in interest per month; and that Georges Trading Corp. would pay taxes on a Connecticut investor's returns, in addition to the promised monthly returns, when no such taxes were ever paid. The action further alleged that, while Georges Trading Corp. had returned a fraction of investment monies to Connecticut investors, Connecticut investors never realized the promised returns, and that the bulk of investor money was spent on Etienne Decembre's personal expenses, the personal expenses of Georges Trading Corp.'s president and on payroll and office costs.

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 September 24, 2002.

Dated: Tuesday, August 13, 2002

John P. Burke
Commissioner