DOB: News Bulletin 2019 - November 1, 2002

The Department of Banking News Bulletin 

Bulletin # 2019
Week Ending November 1, 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
9/30/02 Naugatuck Savings Bank
Naugatuck
75 Tremont Street
Ansonia, CT 06401
opening date

MAIN OFFICE RELOCATION

October 29, 2002 is the effective date of the relocation of the main office of The Bank of New Canaan from 156 Cherry Street, New Canaan, Connecticut, to 208/212 Elm Street, New Canaan, Connecticut.

CHECK CASHING SERVICE LICENSE ACTIVITY

On October 24, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, First Check Cashing, LLC filed an application to operate a check cashing service general facility at 961 First Avenue, West Haven, Connecticut.

ACQUISITION AND MERGER

On November 1, 2002, pursuant to Sections 36a-184 and 36a-411 of the Connecticut General Statutes and Section 36a-412 of the Connecticut General Statutes, as amended by P.A. 01-76, Banknorth Group, Inc., a holding company with its principal place of business in Maine, and its wholly-owned subsidiary Banknorth, National Association, a national banking association, filed an acquisition statement and applications for Banknorth Group, Inc. to acquire American Financial Holdings, Inc., and its wholly-owned subsidiary American Savings Bank, a Connecticut bank, and for the subsequent merger of American Savings Bank with and into Banknorth, National Association.

DE NOVO BRANCH

On October 22, 2002, pursuant to Section 36a-412(a)(2) of the Connecticut General Statutes, as amended by P.A. 01-76, and Section 36a-145(c)(1) of the Connecticut General Statutes, as amended by P.A. 01-183 and P.A. 02-47, U.S. Bank National Association, a national banking association with its main office in Minneapolis, Minnesota, filed an application to establish a de novo limited branch at 225 Asylum Street, 23rd Floor, Hartford, Connecticut to engage solely in trust services.

CREDIT UNION DIVISION ACTIVITY
Merger

On October 28, 2002, pursuant to Section 67 of Public Act 02-73, Amphenol RF Operations Employees Credit Union, Inc., Danbury, Connecticut, filed an application to merge with and into Danbury Cyanamid Employees Credit Union, Inc., Danbury, Connecticut.

CONSUMER CREDIT DIVISION ACTIVITY

On October 29, 2002, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing, regarding Credit Rescue, Inc., a/k/a National Audit/Credit Rescue, Inc., a/k/a Genesis Corp/Credit Rescue, a/k/a Lynn & Debora Schmutz d/b/a Nat'l Audit/Credit Rescue, a/k/a St. Georges Credit Rescue. The entity is located at 50 East 100 South, Suite 100, St. George, Utah. The agency's action was based on the assertion that the entity engaged in the business of debt adjustment in this state without a license, in violation of Section 36a-656 of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Fined $500 for Unregistered Branch Office Activity

On October 30, 2002, the Commissioner entered into a Stipulation and Agreement with Moors & Cabot, Inc., a Connecticut-registered broker-dealer having its principal office at 111 Devonshire Street, Boston, Massachusetts. The Stipulation and Agreement alleged that, from approximately October, 2001 forward, the firm transacted business from 800 Summer Street, Suite 340, Stamford, Connecticut prior to that location being registered as a branch office under the Connecticut Uniform Securities Act.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $500 fine to the department and to revise and implement supervisory and compliance procedures designed to detect violations of Connecticut branch office registration requirements.

Alleged Fraudulent Note Sales Result in Permanent Bar
from Securities Business in Connecticut

On October 31, 2002, the Commissioner entered a Consent Order with respect to Etienne Decembre, vice president of Georges Trading Corp. Etienne Decembre's last known address is 43 Dora Street, #1, Stamford, Connecticut. Respondent Decembre had been the subject of an August 2, 2002 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging 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. The Order to Cease and Desist and Notice of Intent to Fine also claimed that 1) the notes were not registered under Section 36b-16 of the Connecticut Uniform Securities Act; and 2) the respondent violated the antifraud provisions of the Act by 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 Order to Cease and Desist and Notice of Intent to Fine had further alleged that, while Georges Trading Corp. had returned a fraction of monies to Connecticut investors, Connecticut investors never realized the promised returns, and that the bulk of investor's moneies was spent on Etienne Decembre's personal expenses, the personal expenses of Georges Trading Corp.'s president and on payroll and office costs. Since the respondent failed to contest the August 2, 2002 Order to Cease and Desist, the Order to Cease and Desist became permanent on August 22, 2002.

The Consent Order permanently barred the respondent from transacting business in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent. Acknowledging the respondent's documented inability to pay the $30,000 fine sought by the August 2, 2002 Notice of Intent to Fine, the Consent Order provided that the Notice of Intent to Fine was withdrawn.

Dated: Tuesday, November 5, 2002

John P. Burke
Commissioner