The Department of Banking News Bulletin
Bulletin # 2170
Week Ending September 23, 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 email@example.com. Written comments will be considered only if they are received within ten days from the date of this bulletin.
NEW DEPARTMENT OF BANKING WEB SITE
The Department of Banking Web site address has changed, as of September 20, 2005, from www.state.ct.us/dob
. Please change any bookmarks you may have in your browser for the department to the new address. We encourage you to visit our new Web site which features expanded content for industry and consumers, a new navigation scheme and added features, such as “e-alerts”.
SECURITIES FORUM 2005
The Securities and Business Investments Division, in conjunction with the Securities Advisory Council to the Department, is sponsoring its seventeenth annual Securities Forum conference on Tuesday, October 11, 2005 at the Crowne Plaza Hotel and Conference Center (formerly the Radisson Hotel and Conference Center) in Cromwell, Connecticut. A timely and outstanding agenda of panel presentations, featuring expert speakers, will help financial industry professionals keep abreast of current and evolving regulatory developments. Walter Ricciardi, District Administrator for the Boston District of the Securities and Exchange Commission, will be the keynote speaker. The conference includes a luncheon and course materials. For further program and registration information, visit the department's Web site or call the agency at (860) 240-8260.
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.
Citizens Bank of Connecticut
190 Trumbull Street
Hartford, CT 06103
|Citizens Bank of Connecticut
|61 South Main Street
West Hartford, CT 06107
660 Enfield Street
Enfield, CT 06082
INTERSTATE DE NOVO BRANCH
On September 19, 2005, pursuant to Sections 36a-412(a)(2) and 36a-145(b)(1) of the Connecticut General Statutes, First Signature Bank & Trust Company, Portsmouth, New Hampshire, filed an application to establish a de novo branch at 56 Mason Street, Greenwich, Connecticut, 06830.
On September 19, 2005, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a disapproval of the acquisition referred to in the Acquisition Statement of American Capital Management Services, LLC for the acquisition of 94 percent of the outstanding voting securities of Circle Trust Company, a Connecticut trust bank.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist Made Permanent;
Firm Assessed $5,000 for Unregistered Activity
On August 23, 2005, the Commissioner entered a Consent Order resolving certain allegations against Investment Management Corp. contained in a June 30, 2005 Amended and Restated Order to Cease and Desist, Notice of Intent to Deny Registration and Notice of Intent to Fine. The firm had applied for broker-dealer registration under the Connecticut Uniform Securities Act and is located at 563 West 500 South, Suite 225, Bountiful, Utah. The June 30, 2005 action had 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 had claimed that the firm and its officer, owner and control person, Kevin Dee Kunz (CRD number 1274540) had been subject to NASD sanctions imposed in 2003 and 1999, including two suspensions against Kevin Dee Kunz.
The Consent Order rendered the Order to Cease and Desist permanent and required that the firm remit $5,000 to the department. Of that amount $4,500 constituted an administrative fine and $500 constituted reimbursement for Division investigative costs. The Consent Order also required that the firm 1) designate a Connecticut Compliance Supervisor other than Kevin Dee Kunz and submit the name of such individual to the Division for approval; and 2) for two years, provide a quarterly report to the Division describing any complaints, actions or proceedings involving Connecticut residents. Investment Management Corp. became registered as a broker-dealer under the Act on August 23, 2005.
Florida Firm Ordered to Cease and Desist From Violating
Business Opportunity Laws; Notice of Intent to Fine Issued
On September 16, 2005, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Candy King of America, Inc. The corporation, which allegedly was in the business of selling vending machines and offering location assistance, is headquartered at 7890 Peters Road, Building G-100, Plantation, Florida. The action alleged that Candy King of America, Inc. 1) sold unregistered business opportunities through its agents Harvey Wall, Alan Goodman and George Kunkel in violation of Section 36b-67(1) of the Connecticut Business Opportunity Investment Act; 2) failed to provide prospective purchaser-investors with the disclosure document required by Section 36b-63 of the Act; 3) violated Section 36b-67(3) of the Act by using the trademark of Kraft® foods without authorization; and 4) violated Section 36b-80 of the Act by making two false statements in its registration application concerning the extent of its prior offers and sales in Connecticut. The respondent was 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 November 1, 2005.
President of Florida Firm Ordered to Cease and Desist
From Violating Business Opportunity Laws; Notice of Intent to Fine Issued
On September 16, 2005, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Stanley L. Gladstone, president of Candy King of America, Inc. Candy King of America, Inc., which allegedly was in the business of selling vending machines and offering location assistance, is headquartered at 7890 Peters Road, Building G-100, Plantation, Florida. The action alleged that respondent Gladstone caused two materially false statements to be made in the corporation’s application for registration under the Connecticut Business Opportunity Investment Act. Those purportedly false statements concerned the extent of Candy King of America, Inc.’s prior offers and sales in Connecticut. Respondent Gladstone was 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 November 1, 2005.
Dated: Tuesday, September 27, 2005
John P. Burke