DOB: News Bulletin 2047 - May 16, 2003

The Department of Banking News Bulletin

Bulletin # 2047
Week Ending May 16, 2003

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
04/26/2003 Northwest Community
   Bank, Winsted
FROM:  20 West Main St.
           Avon, CT   06001
TO:     101 Simsbury Rd
           Avon, CT   06001
relocation
effective
date

CHECK CASHING SERVICE LICENSE ACTIVITY

On May 9, 2003, pursuant to Section 36a-581 of the Connecticut General Statutes, P & D Financial, Inc. filed an application to operate a check cashing service general facility at 689 Foxon Road, Thompson Plaza, East Haven, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Merger

On May 14, 2003, pursuant to Section 36a-468a of the Connecticut General Statutes, B.M.G. Credit Union, Inc., New Milford, a Connecticut credit union, filed an application to merge with and into McKesson Federal Credit Union, Stratford, a federal credit union.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Belize Firm Fined $20,000 for Fraudulent Sales of Membership Units

On May 7, 2003, the Commissioner entered an Order Imposing Fine against Tri-West Investment Club of 160 North Front Street, P.O. Box 354, Belize City, Belize. The Commissioner's action followed a January 23, 2003 Order to Cease and Desist against the respondent which, being uncontested, became permanent on April 1, 2003, and a January 23, 2003 Notice of Intent to Fine.

In fining the respondent $20,000, the Commissioner found that from at least June 2000 to December 2001, the firm violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered membership units through its Internet website at www.triwestinvest.com. The Commissioner also found that, in connection with the offering, the respondent violated Section 36b-4 of the Act by making false statements and omissions in connection with the offering. Specifically, the respondent purportedly stated that it was selling memberships in a club that invested membership money in Prime Bank Notes, Prime Bank Debenture Forfeitures, Leveraged Bond Purchases and Bank Debentures when, in reality, 1) the respondent made no such investments; and 2) Prime Banks did not exist and, accordingly, could not issue any type of note, debenture or bond. The Commissioner also found that the respondent represented that 1) membership investments were of minimal risk, when such investments were highly risky; and 2) respondent would pay a ten percent rate of return per month, when, in actuality, the respondent never paid such returns to investors.

Greenwich Firm Ordered to Cease and Desist from Selling
Unregistered Securities; Notice of Intent to Fine Issued

On May 15, 2003, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against eNexus Corporation of 7 Gaston Farm Road, Greenwich, Connecticut. In initiating administrative proceedings, the Commissioner alleged that, from at least January 1992 forward, the respondent, through its president and chief executive officer Barbara E. Williams, sold unregistered non-exempt common shares and promissory notes of eNexus Corporation in violation of Section 36b-16 of the Connecticut Uniform Securities Act.

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 29, 2003.

President of Greenwich Firm Ordered to Cease and Desist from
Unregistered Security Sales; Notice of Intent to Fine Issued

On May 15, 2003, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Barbara E. Williams, president and chief executive officer of eNexus Corporation. The Order to Cease and Desist and Notice of Intent to Fine claimed that, from at least January 1992 forward, the respondent sold unregistered non-exempt common shares and promissory notes of eNexus Corporation to at least 39 investors in contravention of Section 36b-16 of the Connecticut Uniform Securities Act.

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 29, 2003.

Dated: Tuesday, May 20, 2003

John P. Burke
Commissioner