DOB: News Bulletin 2073 - November 14, 2003

The Department of Banking News Bulletin 

Bulletin # 2073
Week Ending November 14, 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
11/17/03 Tolland Bank
Vernon
73 Hazard Avenue
Enfield, CT  06082
opening
date

ORDER FOR HEARING

Pursuant to Section 36a-24 of the Connecticut General Statutes, the Commissioner has ordered a hearing to be held on December 4, 2003, at 5 p.m. in the Thorton Wilder Hall at the Miller Memorial Complex, 2901 Dixwell Avenue, Hamden, Connecticut, on the following applications:

(1) the conversion of The New Haven Savings Bank, New Haven, Connecticut, from a mutual savings bank into a capital stock bank to be known as NewAlliance Bank, and for the formation of a holding company, NewAlliance Bancshares, Inc.;

(2) the acquisition of Connecticut Bancshares, Inc. and its subsidiary, The Savings Bank of Manchester, and the acquisition of Alliance Bancorp of New England, Inc. and its subsidiary, Tolland Bank, by NewAlliance Bancshares, Inc.; and

(3) the merger of The Savings Bank of Manchester and Tolland Bank with and into The New Haven Savings Bank, the resulting bank to operate under the name NewAlliance Bank.

CHECK CASHING SERVICE LICENSE ACTIVITY

On November 13, 2003, pursuant to Section 36a-581 of the Connecticut General Statutes, Jaykumar Mehta, d/b/a Family Quick Pay, received approval to operate a check cashing service general facility at 522 Pequonnock Street, Bridgeport, Connecticut.

CONSUMER CREDIT DIVISION ACTIVITY
Findings of Fact, Conclusions of Law and Order Issued

On November 12, 2003, the Banking Commissioner issued Findings of Fact, Conclusions of Law and Order refusing to renew the first mortgage broker license of Joseph Vincent d/b/a Bank Street Mortgage Company, 44 Swanson Avenue, Stratford, Connecticut. The agency's action was based on findings that Joseph Vincent d/b/a Bank Street Mortgage Company violated Section 36a-491(a)(1) by failing to submit a $100 late fee with its renewal application and violated Section 36a-492 by failing to maintain a bond.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
California Firm Ordered to Cease and Desist from Regulatory Violations;
Notice of Intent to Fine Issued

On November 13, 2003, the Banking Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Telecom Entertainment a/k/a Telecom Action Entertainment, LP of 1323 Lincoln Boulevard, Suite 200, Santa Monica, California. The action alleged that, from at least December 2001 forward, the respondent 1) violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered non-exempt limited partnership units in Connecticut; and 2) violated the antifraud provisions in Section 36b-4 of the Act by failing to disclose the existence of sanctions levied against it by the States of Wisconsin and Pennsylvania on May 16, 2000 and May 22, 2001, respectively, and by falsely representing that its securities offering was low risk and that return of principal was assured. 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 December 30, 2003.

Darien Man Barred from Securities Business For Five Years
Following Sale of Unregistered Payphone Securities

On November 12, 2003, the Banking Commissioner entered a Consent Order with respect to James Gardner of Darien, Connecticut. The Consent Order alleged that, from May 1999 through June 2000, respondent Gardner 1) violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling payphone securities issued by American Telecommunications Company, Inc. f/k/a ATC, Inc. and payphone service contracts issued by Alpha Telcom, Inc. a/k/a Alpha Tel-Com, Inc.; and 2) violated Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer. The Consent Order directed respondent Gardner to cease and desist from regulatory violations, and barred him for 5 years from transacting business in or from Connecticut as a broker-dealer, investment adviser, agent of issuer, broker-dealer agent or investment adviser agent.

Two Maryland Firms Each Fined $2,500 for Late Rule 506 Notice Filing

On November 12, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Diverse Communities, LLC and East West Communities, LLC, both of 4340 East West Highway, Suite 206, Bethesda, Maryland. The Stipulation and Agreement alleged that Diverse Communities, LLC, an issuer of securities, had been four years late in making a Rule 506 notice filing under the Connecticut Uniform Securities Act. Section 36b-21(e) of the Act requires the filing of a Rule 506 notice within 15 days following the first sale of securities in this state. Similarly, the Commissioner alleged that East West Communities, LLC had been three years late in making its Rule 506 notice filing. In resolution of the matter, each company agreed to pay a $2,500 fine to the department.

Dated: Tuesday, November 18, 2003

John P. Burke
Commissioner