DOB: News Bulletin 2066 - September 26, 2003

The Department of Banking News Bulletin

Bulletin # 2066
Week Ending September 26, 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) 240-8185. Note: dates are listed in month/day/year format.

Date Bank Location Activity
9/22/03 Union Savings Bank
Danbury
29 Main Street
Bridgewater, CT  06752
opening
date

CHECK CASHING SERVICE LICENSE ACTIVITY

On September 24, 2003, pursuant to Section 36a-581 of the Connecticut General Statutes, Ultimate Check Cashing filed an application to operate a check cashing service general facility at 1941State Street, Hamden, Connecticut.

On September 26, 2003, pursuant to Section 36a-581 of the Connecticut General Statutes, Abna America Inc. filed an application to operate a check cashing service general facility at 21 New Britain Avenue, Hartford, Connecticut.

SETTLEMENT AGREEMENT

On September 25, 2003, the Commissioner entered into a Settlement Agreement with SDM Check Cashing of CT II, LLC ("SDM") of 170 Hamilton Avenue, White Plains, New York. The Settlement Agreement alleged that, from at least July 25, 2003 to the present, SDM's six licensed general facilities were not open to the public for at least six hours per day four days per week as its licenses required, or for the days and hours specified in its applications for the check cashing services licenses, and at no time has SDM obtained the Commissioner's prior written approval to change the days and hours of its operations, which pursuant to Sections 36a-51(a) and 36a-587(a) of the Connecticut General Statutes, constitute sufficient grounds to revoke SDM's check cashing services licenses and issue an order imposing civil penalty for each violation.

Pursuant to the Settlement Agreement, SDM agreed to pay a $30,000 civil penalty and surrender each of its six check cashing services licenses.

CREDIT UNION DIVISION ACTIVITY
Field of Membership

On September 26, 2003, pursuant to Section 36a-462b (d) of the Connecticut General Statutues, as amended by 15(d) of Public Act 03-196, approval was granted to Corporate America Family Credit Union, Elgin, Illinois, to expand its field of membership to include employees of Mastercraft Tool and Machine Company, Inc., Southington, Connecticut, and employees of Electrical Energy Systems Corporation, Southington, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Litchfield Man Fined $25,000, Barred from Securities Business in
Connecticut for 5 Years in Connection With Promissory Note Sales

On January 29, 2003, the Banking Commissioner entered a Consent Order against Stephen P. Funk of 196 Fern Avenue, Litchfield, Connecticut. The respondent had been the subject of a September 25, 2002 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that, from at least January 1999 to June 2001, the respondent offered and sold unregistered non- exempt promissory notes of Wellesley Services, LLC to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act; and that, in so doing, the respondent transacted business as an unregistered agent of the issuer in violation of Section 36b-6(a) of the Act. The action had also alleged that the respondent violated Section 36b-23 of the Act by making a false statement during the course of the department's investigation with respect to the respondent's involvement in the promissory note sales.

In entering the Consent Order, the Commissioner found that the respondent had violated Sections 36b-16 and 36b-6(a) of the Act but withdrew the department's allegation that the respondent had violated Section 36b-23 of the Act. The Consent Order fined the respondent $25,000 and barred him from acting as a broker-dealer, agent, investment adviser or investment adviser agent in Connecticut for five years. In addition, the Consent Order rendered the September 25, 2002 Order to Cease and Desist permanent.

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

On September 17, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Sentra Securities Corporation of 2800 North Central Avenue, Suite 2100, Phoenix, Arizona. The Stipulation and Agreement alleged that from approximately February, 2002 forward, the firm transacted business from 565 Washington Avenue, North Haven, 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. Sentra Securities Corporation is a broker-dealer registered under the Act. The branch office has since been registered. 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.

West Hartford Firm Assessed $1,700 for Transacting
Investment Advisory Business After Prior Registration Expired

On September 24, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Investment Consulting Resources, LLC of 29 Ten Acre Lane, West Hartford. The firm, whose business focuses exclusively on providing advice on the selection or retention of other investment managers, had been registered as an investment adviser under the Connecticut Uniform Securities Act for three years before its registration expired on December 31, 2001 and was not renewed for calendar year 2002. In reapplying for registration in 2003, the firm voluntarily disclosed that it had transacted business after its prior registration had expired. Pursuant to the Stipulation and Agreement, the firm agreed to pay the department $1,700. Of that amount $1,500 constituted an administrative fine and $200 represented past due investment adviser and investment adviser agent registration fees.

Dated: Tuesday, September 30, 2003

John P. Burke
Commissioner