DOB: News Bulletin 2094 - April 9, 2004

The Department of Banking News Bulletin

Bulletin # 2094
Week Ending April 9, 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.


MERGER

On April 5, 2004, pursuant to Section 36a-125 of the Connecticut General Statutes, as amended by Public Act 03-259, Fairfield County Bank Corp., a mutual savings bank, and Bank of Westport, a bank and trust company, filed an application for the merger of Bank of Westport with and into Fairfield County Bank Corp., the resulting bank to operate as a mutual savings bank under the name of Fairfield County Bank Corp., which will continue to have two divisions: Ridgefield Bank: A Division of Fairfield County Bank Corp., and Fairfield County Bank: A Division of Fairfield County Bank Corp. Upon consummation of the merger, the current branches of Bank of Westport will operate under the name Fairfield County Bank: A Division of Fairfield County Bank Corp. In connection with the application, Bank of Westport and Fairfield County Bank Corp., filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.

CHECK CASHING SERVICE LICENSE ACTIVITY

On April 7, 2004, pursuant to Section 36a-581 of the Connecticut General Statutes, Vipul Shah filed an application to operate a check cashing service general facility at News Rack, 495 Union Street, Suite 2000, Waterbury, Connecticut.

CREDIT UNION ACTIVITY

On April 7, 2004, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, as amended by 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 IWORX, Bristol, Connecticut, and employees of Northern Lights Communications, Inc., Bristol, Connecticut.

On April 7, 2004, pursuant to Section 36a-468a of the Connecticut General Statutes, U.S. Baird Employees Credit Union, Inc., Stratford, 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
Iowa Firm Restricted from Seeking Broker-dealer or
Investment Adviser Registration for 3 Years;
Order to Cease and Desist Becomes Permanent

On April 5, 2004, the Commissioner entered a Consent Order resolving certain allegations in a February 4, 2004 Notice of Intent to Deny Registration as Broker-dealer, Order to Cease and Desist and Notice of Intent to Fine against Schoff & Baxter, Inc. of 203 Washington Street, Burlington, Iowa. The February 4, 2004 action had claimed that 1) at various times between November 1997 and at least February 2002, the respondent transacted business as a broker-dealer absent registration in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and employed at least one unregistered agent in violation of Section 36b-6(b) of the Act; 2) the respondent violated Section 36b-23 of the Act by filing with the Commissioner a false or misleading statement concerning the scope of its prior unregistered activity in Connecticut; 3) on January 11, 2001, the Superior Court of the State of California, County of Los Angeles, permanently enjoined the respondent from violating California’s securities laws and fined the respondent $150,505.90 for lapses in supervision; 4) the respondent was the subject of an April 26, 2002 NASD censure based upon alleged supervisory deficiencies; and 5) on March 7, 2003, the NASD fined the respondent $15,000 for permitting registered representatives to perform duties as registered persons while their registration status was inactive due to a failure to complete continuing education requirements. In entering the Consent Order, the Commissioner acknowledged that the firm had refunded to affected Connecticut investors $4,396.14 in commissions earned during the period of unregistered activity, and had submitted documentation indicating that the firm would not be able to pay an administrative fine without impairing its minimum net capital. The Consent Order prohibited the firm from seeking registration as a broker-dealer or investment adviser under the Connecticut Uniform Securities Act for three years following the entry of the Consent Order. In addition, the Consent Order rendered the February 4, 2004 Order to Cease and Desist permanent as of April 5, 2004, and withdrew the February 4, 2004 Notice of Intent to Deny Registration as Broker-dealer and Notice of Intent to Fine.

Dated: Tuesday, April 13, 2004

John P. Burke
Commissioner