DOB: News Bulletin 2106 - July 2, 2004

The Department of Banking News Bulletin

 Bulletin # 2106
Week Ending July 2, 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.


CREDIT UNION ACTIVITY

On June 30, 2004, pursuant to Section 36a-468a of the Connecticut General Statutes, as amended by Public Acts 03-84, 03-259 and 04-257, Harborview Credit Union, Inc, New Haven, a Connecticut credit union, filed an application to merge with and into Dutch Point Credit Union, Inc., Wethersfield, a Connecticut credit union.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Fined $10,000 for Delay in Advising Customers
of Branch Office Closing

On June 29, 2004, the Commissioner entered into a Stipulation and Agreement with Hornor, Townsend & Kent, Inc., a Connecticut-registered broker-dealer having its principal office at 600 Dresher Road, Suite C1C, Horsham, Pennsylvania. The Stipulation and Agreement alleged that (1) the firm violated Section 36b-6(f) of the Connecticut Uniform Securities Act by waiting nearly one year to notify customers that its branch office at 39 Pheasant Court, Windsor Locks, Connecticut, had closed, and (2) the firm engaged in dishonest or unethical practices by representing to customers that the branch had closed effective March 15, 2004 when, in reality, the branch ceased operations in August 2003. The Windsor Locks location had been the subject of a July 25, 2003 Stipulation and Agreement by the Commissioner alleging that the site had not been properly registered as a branch office under the Act.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $10,000 fine and mail to each affected customer of the Windsor Locks branch a copy of the Stipulation and Agreement as well as a complete description of the maintenance, transfer and delivery procedures referenced in Section 36b-6(f) of the Act.

Massachusetts Firm Assessed $3,500 for Engaging Unregistered "Finder"

On July 1, 2004, the Commissioner entered into a Stipulation and Agreement with Ambient Corporation, an issuer of securities located at 79 Chapel Street, Newton, Massachusetts. The Stipulation and Agreement alleged that (1) in 2003, Ambient Corporation employed one Dennis M. Quirk d/b/a United Resources as a "finder" of securities investors and paid Quirk compensation, including a cash success fee and warrants for his activities in connection therewith; (2) in connection with a private placement of Ambient Corporation securities, Quirk directed that his compensation be split with Brighton Capital, Ltd. of 1875 Century Park East, Los Angeles, California; and (3) neither Quirk nor Brighton Capital, Ltd. were registered as broker-dealers or as agents under the Connecticut Uniform Securities Act.

Pursuant to the Stipulation and Agreement, Ambient Corporation agreed to refrain from employing unregistered agents of issuer or from selling securities to Connecticut investors through any broker-dealer that was not registered under the Act. In addition, Ambient Corporation agreed to pay a $3,000 fine to the Department and reimburse the Department $500 for investigative costs.

Dated: Wednesday, July 7, 2004

John P. Burke
Commissioner