DOB: News Bulletin 2158 - July 1, 2005

The Department of Banking News Bulletin

Bulletin # 2158
Week Ending July 1, 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.


BRANCH ACTIVITY
State Bank Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

Date Bank Location Activity
6/27/05 Newtown Savings Bank
Newtown
99 Federal Road
Brookfield, CT 06804
approved
6/28/05 Prime Bank
Orange
* 180 Amity Street
  Woodbridge, CT 06525
approved
*Limited Branch - LPO

NEW BANK ACTIVITY

On June 30, 2005, pursuant to Section 36a-70 of the Connecticut General Statutes, a temporary certificate of authority was issued to the organizers of The Bank of Greenwich for the purpose of conducting the business of a bank and trust company in Greenwich, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Field of Membership

On April 19, 2005, pursuant to Section 36a-437a of the Connecticut General Statutes, Hartford Healthcare Credit Union, Inc., Hartford, Connecticut, received approval to amend its bylaws to expand its field of membership to include all healthcare employees, volunteers, independent contractors or self-employed persons who work in the healthcare industry, and members of the immediate families or households, retirees, or organizations of persons within the field of membership of any public or private healthcare industry in Hartford County, Middlesex County, and New Haven County, Connecticut.

Merger

On June 20, 2005, pursuant to Section 36a-468a of the Connecticut General Statutes, approval was granted to Bethel Stamford Credit Union, Inc., Stamford, a Connecticut credit union, to merge with and into Members Credit Union, Inc., Stamford, a Connecticut credit union.

CONSUMER CREDIT DIVISION ACTIVITY
Findings of Fact, Conclusions of Law and Order Issued

On June 20, 2005, the Commissioner issued Findings of Fact, Conclusions of Law and Order ("Final Decision") In the Matter of: Federated First Mortgage Corporation d/b/a FedFirst Mortgage Corporation ("Respondent"). Respondent had been the subject of a May 9, 2005 Order of Automatic Suspension, Notice of Intent to Refuse to Renew First Mortgage Correspondent Lender/Broker License and Notice of Right to Hearing. Respondent failed to request a hearing. The Commissioner ordered, pursuant to Sections 36a-51 and 36a-494(a)(1)(C) of the Connecticut General Statutes, that the license of Respondent to engage in the business of making first mortgage loans and to act as a first mortgage broker in Connecticut not be renewed. A copy of the Final Decision can be obtained from the Department's website, www.ct.gov/dob, or by contacting the Department's Legal Division.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Massachusetts Firm Assessed $2,500
for Late Rule 506 Notice Filings

On June 20, 2005, the Commissioner entered into a Stipulation and Agreement with Double Play Partners, L.P. of 1391 Main Street, Springfield, Massachusetts. The Stipulation and Agreement acknowledged that Double Play Partners, L.P. had been fully forthcoming in facilitating the agency's review by bringing certain filing lapses to the agency's attention through its legal counsel and making corrective filings. Those filing lapses concerned the issuer's failure to file Rule 506 notice filings under the Connecticut Uniform Securities Act. Section 36b-21(e) of the Act requires the filing of a Rule 506 notice within 15 days following the first sale of securities in this state. Pursuant to the Stipulation and Agreement, the issuer agreed to pay a $2,500 fine and to refrain from offering or selling securities in or from Connecticut absent compliance with Section 36b-16 of the Act, including timely compliance with any applicable filing requirements.

Wilton, CT Firm Assessed $3,500 for Late Rule 506 Notice Filings

On June 20, 2005, the Commissioner entered into a Stipulation and Agreement with Private Client Resources, LLC of 187 Danbury Road, Suite 202, Wilton, Connecticut. The Stipulation and Agreement arose from the issuer's alleged failure to timely file Rule 506 notice filings under the Connecticut Uniform Securities Act. Section 36b-21(e) of the Act requires the filing of a Rule 506 notice within 15 days following the first sale of securities in this state. Pursuant to the Stipulation and Agreement, the issuer agreed to pay a $3,500 fine and to refrain from offering or selling securities in or from Connecticut absent compliance with Section 36b-16 of the Act, including timely compliance with any applicable filing requirements.


Utah Firm Ordered to Cease and Desist from Unregistered
Broker-dealer Activity; Notice of Intent to Deny Registration
as Broker-dealer and Notice of Intent to Fine Issued

On June 21, 2005, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Deny Registration as Broker-dealer, Notice of Intent to Fine and Notice of Right to Hearing against Investment Management Corp., an applicant for broker-dealer registration located at 563 West 500 South, Suite 225, Bountiful, Utah. The action alleged that from at least December 2003 forward, 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 an unregistered agent. In addition, the action claimed that the firm and its officer, owner and control person, Kevin Dee Kunz, had been subject to NASD sanctions imposed in 2003 and 1999, including two suspensions against Kevin Dee Kunz. Investment Management Corp. was afforded an opportunity to request a hearing on the Order to Cease and Desist and the Notice of Intent to Deny Registration as Broker-dealer. A hearing on the Notice of Intent to Fine has been scheduled for July 26, 2005.

Dated: Wednesday, July 6, 2005

John P. Burke
Commissioner