DOB: News Bulletin 2091 - March 19, 2004

The Department of Banking News Bulletin 

Bulletin # 2091
Week Ending March 19, 2004

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

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 Financial Institutions Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

State Bank Activity

Date Bank Location Activity
3/22/04 The Connecticut Bank
  and Trust Company
Hartford
7 Sycamore Street
Glastonbury, CT  06033
opening
date

CHECK CASHING SERVICE LICENSE ACTIVITY

On March 8, 2004, Connecticut State Check Cashing surrendered its license to operate a check cashing service general facility at 201-01 Thomaston Avenue, Waterbury, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Florida Firm Fined $50,000 for Violations of Business Opportunity Statute;
Stop Order Entered Denying Business Opportunity Registration

On March 18, 2004, the Commissioner entered a Stop Order denying effectiveness to the pending business opportunity of Debit Corporation of America, Inc. of 3475 Sheridan Street, Suite 215F, Hollywood, Florida. On the same day, the Commissioner fined the corporation $50,000. Debit Corporation of America, Inc. is purportedly in the business of selling debit card sales systems, display items that store prepaid MasterCard activation certificates and location assistance, all for the purpose of enabling purchasers to start their own business. In sanctioning the respondent, the Commissioner found that the registration application was materially incomplete in that the respondent, through its current and former principals, Jack Gordon and Janice Tipp, failed to submit such items as: adequate financial information, proof of compliance with those provisions of Title 36a of the Connecticut General Statutes governing money transmitters, an explanation of how the debit card business systems would work, litigation history; and bankruptcy information on the respondentís predecessors. The Commissioner also found that 1) from at least March 2003 forward, the respondent had sold its unregistered debit card business opportunity to at least three Connecticut purchasers in violation of the Connecticut Business Opportunity Investment Act; 2) the respondent failed to disclose the existence of a July 9, 2003 civil complaint for injunctive relief filed against it by the Attorney General of the State of California; and 3) the respondent violated Section 36b-67 of the Connecticut Business Opportunity Investment Act by making unsubstantiated earnings claims.

The respondent did not contest the stop order or the imposition of the $50,000 fine. Debit Corporation of America, Inc. had also been the subject of a December 22, 2003 Order to Cease and Desist which, being uncontested, had become permanent on January 13, 2004.

Investment Adviser Assessed $3,900 for Employing
Unregistered Investment Adviser Agent

On March 19, 2004, the Commissioner entered into a Stipulation and Agreement with Karn Couzens & Associates, Inc., a Securities and Exchange Commission-registered investment adviser located at 10 Melrose 7 Drive, Farmington, Connecticut. The Stipulation and Agreement alleged that the firm had engaged an unregistered investment adviser agent in violation of Section 36b-6(c) of the Connecticut Uniform Securities Act. In resolution of the matter, the firm registered the investment adviser agent and agreed to pay $3,900 to the agency. Of that amount, $3,500 constituted an administrative fine and $400 represented past due registration fees.

Dated: Tuesday, March 23, 2004

John P. Burke
Commissioner