DOB: News Bulletin 2142 - March 11, 2005

The Department of Banking News Bulletin 

 Bulletin # 2142
Week Ending March 11, 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, Banking Commissioner, 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
 Main Office Relocation

On March 9, 2005, pursuant to Section 36a-463b(a) of the Connecticut General Statutes, State Police Credit Union, Inc. requested approval to move its main office from 264 Colony Street, Meriden Connecticut to 300 Research Parkway, Meriden, Connecticut.

CHECK CASHING SERVICE LICENSE ACTIVITY

On March 1, 2005, pursuant to Section 36a-581 of the Connecticut General Statutes, Rapienvio Travel, Inc. filed an application for approval to operate a check cashing service general facility at 643 Park Street, Hartford, Connecticut.

ORGANIZATION OF HOLDING COMPANY

On March 9, 2005, pursuant to Section 36a-181 of the Connecticut General Statutes, Valley Bank, a capital stock Connecticut bank, filed an application for approval to organize a bank holding company, First Valley Bancorp, Inc., as a Connecticut stock corporation. Pursuant to an Agreement and Plan of Reorganization filed with the application, First Valley Bancorp, Inc., would acquire all the issued and outstanding common stock of Valley Bank. In connection with the application Valley Bank filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY 
Louis P. Celentano and Michelle Montano, Ex-Officers of
Circle Trust Company, Ordered to Cease and Desist
From Violating Antifraud Provisions in Connection With
Improper Market Timing; Notice of Intent to Fine Issued

On March 7, 2005, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Louis P. Celentano and Michelle Montano. From January 2000 to July 2002, respondent Celentano had been the Chairman and Chief Executive Officer of Circle Trust Company, a Connecticut bank organized to function solely in a fiduciary capacity, and respondent Montano had been the bank's President and Chief Operating Officer. Circle Trust Company is affiliated with Orbitex Financial Management Group. Collectively, respondents Celentano and Montano owned over 10 percent and less than 25 percent of the bank's common stock.

The action alleged that respondent Celentano violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act by 1) introducing Brean Murray, a broker-dealer, and Canary Investment Management, LLC, a Secaucus, New Jersey-based investment adviser and hedge fund, to PEA Capital LLC f/k/a PIMCO Advisors LLC for the purpose of market timing PIMCO mutual funds, an arrangement that resulted in $77,578 in fees being paid to Circle Trust Company for the market timing of PIMCO funds by Canary Investment Management, LLC; and 2) facilitating improper market timing by Kaplan & Co. Securities Inc., Geek Securities, Inc. and Canary Investment Management, LLC by permitting those entities to use the bank's electronic trading platform for that purpose, an arrangement that resulted in approximately $1.2 million in profits for Kaplan & Co. Securities, Inc., $5.5 million in profits for Geek Securities, Inc. and $1.7 in profits for Canary Investment Management, LLC as well as $211,000 in fees for Circle Trust Company.

The action claimed that respondent Montano violated the antifraud provisions in Section 36b-4(a) of the Act by authorizing Canary Investment Management, LLC, Kaplan & Co. Securities, Inc. and Geek Securities, Inc. to use the bank's electronic trading platform to engage in improper marketing timing and failing to stop the practice, notwithstanding complaints from various mutual funds concerning the excessive trading activity.

The respondents were 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 April 5, 2005.

Dated: Tuesday, March 15, 2005

John P. Burke
Commissioner