DOB: News Bulletin 2146 - April 8, 2005

The Department of Banking News Bulletin 

Bulletin # 2146
Week Ending April 8, 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

On April 4, 2005, pursuant to Section 36a-437a of the Connecticut General Statutes, The Stamford Health System Employees Credit Union, Inc. requested approval to amend its bylaws and Certificate of Incorporation to change its name to Stamford Healthcare Credit Union, Inc.

On April 7, 2005, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate America Family Credit Union, Elgin, Illinois, filed a request for approval to expand its field of membership in the State of Connecticut to include employees of Ward Leonard Electric Company, Inc., Thomaston, Connecticut.

CHECK CASHING SERVICE LICENSE ACTIVITY

On April 1, 2005, Omnex Group, Inc., San Diego, California, withdrew its application for a general facility check cashing services license at 2432 Main Street, Glastonbury, Connecticut.

MONEY TRANSMITTER LICENSE ACTIVITY

On April 6, 2005, pursuant to Section 36a-598 of the Connecticut General Statutes, Metavante Payment Services, LLC, Milwaukee, Wisconsin, filed an application to issue Connecticut payment instruments and to engage in the business of money transmission.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Agent Registration Summarily Suspended; Notice of Intent
to Revoke Registration as Agent Issued

On March 31, 2005, the Commissioner issued a Notice of Intent to Revoke Registration as Agent and Order Summarily Suspending Registration as Agent against David Michael Faubert, a Connecticut-based agent of Tower Square Securities, Inc., a broker-dealer. The respondent is also the president of Faubert Financial Group, Inc., an insurance agency located in Avon, Connecticut. The action alleged that the respondent 1) wilfully violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities in the form of promissory notes and investments in his business, Creative Marketing Consultants, LLC; 2) wilfully violated Section 36b-31-6e of the Regulations under the Act by engaging in private securities transactions without notice to his employing broker-dealer; and 3) wilfully violated the antifraud provisions in Section 36b-4(a) of the Act by appropriating for his personal use investor funds given to him for investment in the promissory notes and Creative Marketing Consultants, LLC investments and by disseminating false account statements to Connecticut investors regarding those investments. The Notice of Intent to Revoke Registration as Agent and Order Summarily Suspending Registration as Agent recited that the respondent had admitted to Division personnel that, since 2000, he had stolen approximately $4 million from at least 15 clients through the sale of fraudulent securities. On March 24, 2005, the United States District Court for the District of Connecticut granted a Temporary Restraining Order, Order Freezing Assets and Order for Other Equitable Relief against the respondent and Faubert Financial Group, Inc. in an action brought by the Securities and Exchange Commission.

The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Revoke and the summary suspension order.

Dated: Tuesday, April 12, 2005

John P. Burke
Commissioner