DOB: News Bulletin 2135 - January 21, 2005

The Department of Banking News Bulletin 

 Bulletin # 2135
Week Ending January 21, 2005

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.


CHECK CASHING SERVICE LICENSE ACTIVITY

On January 11, 2005, pursuant to Section 36a-581 of the Connecticut General Statutes, ASP Investments LLC d/b/a ASP Check Cashing received approval to operate a check cashing service general facility at 150 Main Street, Ansonia, Connecticut.

M0NEY TRANSMITTER LICENSE ACTIVITY

On January 20, 2005, pursuant to Section 36a-598 of the Connecticut General Statutes, Global Money Remittance Inc. received approval to engage in the business of money transmission.

On January 21, 2005, pursuant to Section 36a-598 of the Connecticut General Statutes, Remesas Quisqueyana, Inc. received approval to engage in the business of money transmission.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order Conditioning Effectiveness of Withdrawal of Registration
as Agent Issued; Notice of Intent to Revoke
Registration as Agent Withdrawn

On January 18, 2005, the Commissioner issued an Order Conditioning Effectiveness of Withdrawal of Registration as Agent with respect to James Arthur Wilson, Sr. of Newburgh, New York. The January 18, 2005 action had been preceded by a December 7, 2004 Notice of Intent to Revoke Registration as Agent alleging that that, on February 10, 2004, in New York Superior Court, County Court of Orange County, the respondent had been convicted by plea of grand larceny in the fourth degree, a class E felony under New York law, for stealing $5,265 in unemployment benefits from the New York State Department of Labor, and had been sentenced to pay $5,265 in restitution. Restitution allegedly had been paid on or about February 2, 2004. On December 17, 2004, following the Commissioner's issuance of the Notice of Intent to Revoke Registration as Agent, the respondent's then employer, Ormes Capital Markets, Inc., filed a Forum U-5 to withdraw the respondent's registration as an agent of that firm.

The Order Conditioning Effectiveness of Withdrawal of Registration as Agent made the respondent's registration withdrawal effective as of January 18, 2005 subject to certain conditions. Those conditions consisted of: 1) a 10 year bar from transacting business in or from Connecticut as an agent of issuer, a broker-dealer agent, an investment adviser agent, a broker-dealer or an investment adviser; 2) a 10 year bar from acting, in or from Connecticut, as a finder for compensation, splitting commissions or receiving referral fees in connection with any recommendation, sale or purchase of securities; and 3) a prohibition on violating the Connecticut Uniform Securities Act or any rule, regulation or order under the Act. The Order Conditioning Effectiveness of Withdrawal of Registration as Agent also withdrew the December 7, 2004 Notice of Intent to Revoke Registration as Agent, and provided that, upon a showing of good cause, the respondent could apply for relief from the restrictions in the January 18, 2005 order after seven years had elapsed from the entry of the order.

Broker-dealer Registration Revoked; Firm Fined $420,000;
Prior Order to Cease and Desist Made Permanent

On January 18, 2005, the Commissioner issued an Order to Cease and Desist and Amended Order revoking the broker-dealer registration of LH Ross & Company, Inc. of 2255 Glades Road, Suite 425W, Boca Raton, Florida. On the same day the Commissioner entered an order fining the firm $420,000. The January 18, 2005 action amended and superseded an Order Revoking Registration as Broker-dealer and Order Imposing Fine that had been incorrectly dated January 4, 2004. The 2005 sanctions had been preceded by a May 25, 2004 Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine which were uncontested by the respondent. In addition to rendering the May 25, 2004 Order to Cease and Desist permanent as of January 18, 2005, the January 18, 2005 action found that the respondent had: 1) engaged in dishonest or unethical practices by employing "cold callers" who were not registered with the NASD and by using sales scripts that had not been approved by a registered principal of the firm; 2) violated Section 36b-6(b) of the Connecticut Uniform Securities Act by employing unregistered agents; 3) violated Section 36b-31-14a(a) of the Regulations under the Act by failing to accurately record loans and failing to keep payroll or bonus related records for any of the firm's cold callers; 4) engaged in dishonest or unethical practices by engaging in unauthorized trading on behalf of Connecticut customers; 5) engaged in dishonest or unethical practices by executing securities transactions without first obtaining written discretionary authority from affected customers; 6) violated a June 7, 2002 Consent Order entered by the Commissioner by employing unregistered personnel, failing to establish and enforce adequate supervisory procedures and failing to report a customer complaint; 7) engaged in dishonest or unethical practices by opening margin accounts for Connecticut customers without providing the margin disclosure statement described in NASD Rule 2341; and 8) violated Section 36b-31-6f(b) of the Regulations under the Act by failing to enforce and maintain a system for supervising the activities of its agents that was reasonably designed to achieve compliance with applicable securities laws and regulations.

Dated: Tuesday, January 25, 2005

John P. Burke
Commissioner