DOB: News Bulletin 2164 - August 12, 2005

The Department of Banking News Bulletin

Bulletin # 2164
Week Ending August 12, 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 Credit Union 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
8/08/05 Hudson United Bank
Mahwah, NJ
FROM: 322 North Main St.
          West Hartford, CT 06107
TO:     43 South Main St.
          West Hartford, CT 06107
approved
to relocate
8/10/05
Rockville Bank
Rockville
660 Enfield St.
Enfield, CT  06082
filed
8/12/05 The Milford Bank
Milford
*142 Temple St., Suite 306
  New Haven, CT  06510
approved
8/15/05 Connecticut River
  Community Bank
Wethersfield
64 Oak Street
Glastonbury, CT  06033
opening
date
*Limited branch

INTERSTATE DE NOVO BRANCH

On August 11, 2005, pursuant to Sections 36a-412(a)(2) and 36a-145(b)(1) of the Connecticut General Statutes, the Commissioner granted approval to Commerce Bank, N.A., to establish a de novo branch at 1715 - 1757 Black Rock Turnpike, Fairfield, Connecticut.

MONEY TRANSMITTER LICENSE ACTIVITY

On August 3, 2005, pursuant to Section 36a-598 of the Connecticut General Statutes, Paychex, Inc., Rochester, New York, filed an application to issue Connecticut payment instruments and engage in the business of money transmission.

SALE OF BRANCHES

On August 10, 2005, pursuant to Section 36a-145(i) of the Connecticut General Statutes, approval was granted to People's Bank, Bridgeport, a Connecticut-chartered capital stock savings bank, for the sale of three of its full-service branches to Putnam Savings Bank, Putnam, a federally-chartered savings bank. The branches are located at 461 Voluntown Road, Route 138, Griswold, Connecticut; 1616 Route 12, Gales Ferry, Connecticut; and 67 Lathrop Road, Plainfield, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
Darien Man Fined $40,000, Ordered to Cease and Desist
from Regulatory Violations Following a Hearing

On August 8, 2005, following a hearing, the Banking Commissioner issued Findings of Fact, Conclusions of Law and an Order in the matter of Eddie Papic of Darien, Connecticut. Respondent Papic had been the subject of a contested Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing issued on February 5, 2004. The respondent was the managing member of Criterion Investment Capital, LLC, which in turn was the general partner of Criterion Investment Fund I L.P., a partnership that pooled funds for investment purposes. Criterion Investment Capital, LLC maintained an office at One Lafayette Place, Greenwich Connecticut and subsequently at 56 John Street, Southport, Connecticut.

In rendering his decision, the Commissioner determined that the respondent violated the antifraud provisions in the Connecticut Uniform Securities Act by 1) failing to disclose the respondent's prior bankruptcy in an offering circular distributed to prospective investors in Criterion Investment Fund I L.P.; 2) failing to disclose to partnership investors that, contrary to representations in the offering circular, investments of less than $500,000 had been accepted; 3) failing to disclose to partnership investors that, contrary to the offering circular's requirement that investors have a net worth in excess of $1 million, two Connecticut investors did not, in fact, meet the net worth requirement; 4) failing to disclose to investors that, contrary to the offering circular's requirement that the general partner provide each limited partner with an annual report containing financial statements and a quarterly report, such reports would not be furnished; 5) misrepresenting when a partnership investor's funds would be invested in the partnership; and 6) informing a Connecticut investor that the investor's investment had experienced a 10% drop in value when in reality it had decreased from $152,724.01 to $10,974. The Commissioner also determined that respondent Papic violated Section 36b-6(c) of the Connecticut Uniform Securities Act by transacting business as an unregistered investment adviser agent of Criterion Investment Capital, LLC, an investment adviser.

The Commissioner ordered that the respondent pay a $40,000 fine and cease and desist from further regulatory violations.

Notice of Intent to Revoke Registration as Broker-dealer,
Notice of Intent to Fine and Order to Cease and Desist Issued

On August 4, 2005, the Commissioner issued an order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine against Geek Securities, Inc., a Connecticut-registered broker-dealer having its principal office at 999 Yamato Road, Suite 100, Boca Raton, Florida. The action was based on allegations that the firm's president and control person, Kautilya Sharma, had been convicted of federal felony charges involving conspiracy to sell unregistered securities and conspiracy to commit securities fraud on October 15, 2004 in the U.S. District Court for the Southern District of Florida. The Commissioner's action also alleged that the firm violated Section 36b-31-14e(a) of the Regulations under the Connecticut Uniform Securities Act by wilfully failing to disclose Kautilya Sharma's conviction on the firm's amendment to its Uniform Application for Broker-dealer Registration (Form BD). The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist and the Notice of Intent to Revoke Registration as Broker-dealer. A hearing on the Notice of Intent to Fine has been scheduled for October 3, 2005.

Notice of Intent to Revoke Registration as Agent,
Notice of Intent to Fine and Order to Cease and Desist Issued

On August 4, 2005, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Revoke Registration as Agent and Notice of Intent to Fine against Kautilya ("Tony") Sharma of 7363 Sedona Way, Delray Beach, Florida. The respondent was the president and a control person of Geek Securities, Inc., a Connecticut-registered broker-dealer having its principal office at 999 Yamato Road, Suite 100, Boca Raton, Florida. The action alleged that respondent Sharma had been convicted of federal felony charges involving conspiracy to sell unregistered securities and conspiracy to commit securities fraud on October 15, 2004 in the U.S. District Court for the Southern District of Florida. The Commissioner's action also alleged that respondent Sharma violated Section 36b-31-14e(a) of the Regulations under the Connecticut Uniform Securities Act by wilfully failing to disclose the conviction on his amended Uniform Application for Securities Industry Registration or Transfer (Form U-4). The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist and the Notice of Intent to Revoke Registration as Agent. A hearing on the Notice of Intent to Fine has been scheduled for October 3, 2005.

Dated: Tuesday, August 16, 2005

John P. Burke
Commissioner