DOB: News Bulletin 2159 - July 8, 2005

 The Department of Banking News Bulletin
Bulletin # 2159
Week Ending July 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.


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
6/28/05 Prime Bank
Orange
* 180 Amity Road
  Woodbridge, CT 06525
approved
7/08/05 The Connecticut Bank
   and Trust Company
Hartford
435 Hartford Turnpike
Vernon, CT  06066
filed
*Limited Branch - LPO (previously reported in error as Amity Street in Bulletin 2158)

 State Credit Union Activity

Date Credit Union Location Activity
6/28/05 Dutch Point
  Credit Union, Inc.
Wethersfield
8 West Main Street, Unit 1-5
East Lyme, CT  06333
approved
7/08/05 Mutual Security
  Credit Union, Inc.
Wilton
6580 Main Street
Stratford, CT  06614
approved

SALE OF BRANCHES

On July 8, 2005, pursuant to Section 36a-145(i) of the Connecticut General Statutes, People's Bank, Bridgeport, a Connecticut-chartered capital stock savings bank, filed an application for the sale of three of its full-service branches to Putnam Savings Bank, Putnam, a federally-chartered savings bank. The branches to be sold are 461 Voluntown Road, Route 138 Griswold, Connecticut; 1616 Route 12, Gales Ferry, Connecticut; and 67 Lathrop Road, Plainfield, Connecticut.

CREDIT UNION ACTIVITY
Field of Membership

On June 28, 2005, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate America Family Credit Union, Elgin, Illinois, was granted approval to expand its field of membership in the State of Connecticut to include independent consultants of the Gina Newhouse Family of Mary Kay, Inc., Oxford, and employees of Lavendar Fields Day Spa, Milldale.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Stamford Firm Directed to Refrain from Securities Offers and
Sales Absent Compliance With Regulatory Requirements

On June 28, 2005, the Commissioner entered a Consent Order resolving allegations in a November 17, 2004 Notice of Intent to Issue Stop Order denying effectiveness to the pending securities registration of BMX Entertainment Corporation. The respondent, located at 67 Smith Street, P.O. Box 10857, Stamford, Connecticut, purportedly was in the music recording and distribution business. The Notice of Intent to Issue Stop Order had alleged that, notwithstanding more than one deficiency letter issued by agency staff, the registration statement remained materially incomplete in that, among other things, the issuer's disclosure document did not satisfy the requirements in the SCOR Issuer's Manual. The Consent Order directed BMX Entertainment Corporation, its officers, directors, agents, employees and representatives to refrain from offering or selling securities in contravention of Connecticut's securities laws. In addition, the Consent Order directed the respondent to refrain from reapplying for securities registration until it had retained experienced securities legal counsel to formally represent it and to ensure compliance with registration and disclosure requirements. The Consent Order also precluded the respondent from relying on an exemption from securities registration or any claim of "covered security" status unless, prior to making any offers or sales in or from Connecticut, the respondent first obtained a written advisory interpretation from the Commissioner regarding the availability of such exemption or confirming the security's status as a "covered security." Finally, the Consent Order recited that the respondent would be deemed to have requested withdrawal of its registration effective on the date the Commissioner executed the Consent Order.

Stop Order Entered Denying Effectiveness to Business Opportunity
Registration; Order to Cease and Desist Becomes Permanent

On June 29, 2005, the Commissioner entered a Stop Order denying effectiveness to the pending business opportunity registration of Power Internet Terminals, Inc. of 3400 Lakeside Drive, Suite 510, Miramar, Florida. The respondent had been subject to an April 26, 2005 Notice of Intent to Issue Stop Order Denying Effectiveness to a Business Opportunity Registration, Order to Cease and Desist and Notice of Intent to Fine alleging that 1) the respondent, which purportedly offered a public access Internet terminal business opportunity, filed a materially incomplete registration application that failed to disclose, inter alia, a May 1, 2003 Final Order to Cease and Desist, Denying Exemptions and Assessing Civil Penalties entered by the State of Oregon against Frank Mineo, president of the respondent, based on alleged violations of the Oregon antifraud provisions, and a September 13, 2004 Summary Order to Cease and Desist and Denying Registration issued by the State of Washington against the respondent and Frank Mineo; 2) the respondent offered unregistered business opportunities through its web site in violation of Section 36b-71(1) of the Connecticut Business Opportunity Investment Act; and 3) the respondent violated Section 36b-67(2) of the Act by making representations of income and earnings potential without providing substantiating data to prospective purchaser-investors. The Stop Order was entered by default. Similarly, the respondent did not contest the April 26, 2005 Order to Cease and Desist which became permanent on May 17, 2005. A hearing on the Notice of Intent to Fine remains pending.

Dated: Tuesday, July 12, 2005

John P. Burke
Commissioner