DOB: News Bulletin 2059 - August 8, 2003

The Department of Banking News Bulletin

Bulletin # 2059
Week Ending August 8, 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.


ACQUISITION

On August 8, 2003, pursuant to Section 36a-184 of the Connecticut General Statutes, Webster Financial Corporation, a Delaware corporation, filed an application for the acquisition of The North American Bank & Trust Company, a Connecticut bank.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order Vacating Registration Restrictions and Conditions Entered

On August 6, 2003, the Banking Commissioner entered an Order Vacating Registration Restrictions and Conditions with respect to Fidelity International Securities, Inc. d/b/a Constitution Capital Corp. of 830 Post Road East, Westport, Connecticut. The firm, which is a registered broker-dealer under the Connecticut Uniform Securities Act, had been the subject of a February 27, 1995 Consent Order Conditioning Registration as a Broker-dealer and Investment Adviser. The 1995 order had been based on the January 1994 one-month suspension of Louis Francis Albanese, then the secretary/treasurer and director of the firm, by the New York Stock Exchange.

In entering the Order Vacating Registration Restrictions and Conditions, the Commissioner noted that Louis Francis Albanese was no longer associated with the firm in any capacity, that the firm's investment advisory activities were now subject to exclusive SEC oversight following passage of the National Securities Markets Improvement Act of 1996; and that four of the eight conditions and restrictions imposed by the earlier order had expired by their terms. The Order Vacating Registration Restrictions and Conditions vacated the remaining four restrictions and conditions.

New York Firm Fined $3,500, Activities Restricted, for Impeding
State Examination and Employing Unregistered "Cold Callers"

On August 6, 2003, the Banking Commissioner entered a Consent Order with respect to Vision Securities, Inc. of 647 Franklin Avenue, Garden City, New York. The Consent Order alleged that, during a Securities and Business Investments Division examination, the firm, through its former compliance officer, Danielle Terzano and former president, Mark Eisenberg, prohibited Division staff from proceeding with the examination in violation of Section 36b-31-14f(b)(3) of the Regulations under the Connecticut Uniform Securities Act. The Consent Order also alleged that the firm engaged in dishonest or unethical practices by employing "cold callers" who were not registered with the NASD and failing to establish and enforce an adequate supervisory system. The firm, previously owned by Lantern Investments, Inc., is now under new ownership.

The Consent Order fined the firm $3,500 and restricted its Connecticut securities business to investment company securities, governmental securities, exchange-listed and NASDAQ-NMS securities, annuities and non-securities insurance products. The Consent Order also required that the firm reimburse the agency up to $2,500 to cover the costs of a future examination of the firm's offices to be conducted within 24 months.

Illinois Firm Fined $1,000 for Transacting Business
from Unregistered Broker-dealer Branch Office

On August 6, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Regal Discount Securities, Inc. of 950 Milwaukee Avenue, Suite 102, Glenview, Illinois. The Stipulation and Agreement alleged that from approximately May 2002 forward, the firm transacted business from 131 Mountain Road, West Redding, Connecticut at a time when that location was not registered as a branch office under Section 36b-6(d) of the Connecticut Uniform Securities Act. Regal Discount Securities, Inc. is a broker-dealer registered under the Act.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $1,000 fine and implement supervisory procedures designed to prevent violations of Connecticut's branch office registration requirements.

Dated: Tuesday, August 12, 2003

John P. Burke
Commissioner