DOB: News Bulletin 2193 - March 3, 2006

The Department of Banking News Bulletin 

Bulletin # 2193
Week Ending March 3, 2006

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
2/27/06
Valley Bank
Bristol
98 Main Street
Southington, CT  06489
approved to
convert limited
to full service


CREDIT UNION ACTIVITY
Branch Activity
 
Date Credit Union Location Activity
2/28/06
Connex Credit Union, Inc.
North Haven
2110 Dixwell Avenue
Hamden, CT  06514
approved
 

NOTICE OF INTENT TO AMEND REGULATIONS
 
The Commissioner is issuing a Notice of Intent to Amend Regulations concerning the protection of public deposits.  A copy of the proposed regulations is available online.
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Notice of Intent to Revoke Registration
as Agent and Notice of Intent to Fine Issued
 
On March 2, 2006, the Commissioner issued a Notice of Intent to Revoke Registration as Agent and Notice of Intent to Fine with respect to Steven Gray, a former registered broker-dealer agent of Independent Securities Investors Corporation.  Connecticut law permits the Commissioner to initiate revocation proceedings within one year following an agentís withdrawal of registration.  The Notice of Intent to Revoke Registration as Agent and Notice of Intent to Fine alleged that respondent Gray 1) violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered, non-exempt notes issued by Charter One Capital Holding, Inc., an entity of which he was president and that owned and operated a branch of Independent Securities Investors Corporation in New York, New York; 2) violated Section 36b-4 of the Act by engaging in fraudulent practices with respect to sales of the Charter One Capital Holdings, Inc. notes; 3) failed to supervise one or more Independent Securities Investors Corporation agents who engaged in unauthorized trading, effected securities transactions while unregistered,  and violated Section 36b-16 of the Act by selling unregistered securities of Bio-Solutions Manufacturing and Stake Technology; 4) violated Section 36b-31-6e of the Regulations by engaging in private securities transactions; 5) engaged in dishonest or unethical practices; and 6) withheld material information from the Commissioner by failing to provide agency staff with requested documents.  Respondent Gray was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Agent.  A hearing on the Notice of Intent to Fine has been scheduled for April 18, 2006.
 
Broker-dealer Fined $500 for Unregistered Branch Office Activity
 
On March 3, 2006, the Commissioner entered into a Stipulation and Agreement with Granite Securities, LLC, a Connecticut-registered broker-dealer with its main office located at 27980 Main Road, P.O. Box 1307, Cutchogue, New York.  The Stipulation and Agreement alleged that from November 2004 until December 2005, the firm transacted business from an unregistered branch office at 7 Main Street, Stafford Springs, Connecticut in contravention of Section 36b-6(d) of the Connecticut Uniform Securities Act.  The Stipulation and Agreement fined the firm $500 and required that it implement revised supervisory procedures designed to prevent violations of Connecticut branch office registration requirements.
 
Broker-dealer Fined $1,500 for Unregistered Branch Office Activity
 
On March 3, 2006, the Commissioner entered into a Stipulation and Agreement with UVest Financial Services Group, Inc. of 200 South College Street, 21st Floor, Charlotte, North Carolina.  The firm is registered as a broker-dealer under the Connecticut Uniform Securities Act.  The Stipulation and Agreement alleged that from March 2003 until December 2005, the firm transacted business from an unregistered branch office at 378 New Britain Avenue, Plainville, Connecticut in contravention of Section 36b-6(d) of the Act.  The Stipulation and Agreement fined the firm $1,500 and required that it implement revised supervisory procedures designed to prevent violations of Connecticut branch office registration requirements.
 
Broker-dealers Assessed $4,000 in the Aggregate for Failing
to Notify the Commissioner of Branch Office Closures
 
On March 3, 2006, the Commissioner entered into a Stipulation and Agreement with Walnut Street Securities, Inc. of 13045 Tesson Ferry Road, B1-50, St. Louis Missouri, and with Tower Square Securities, Inc. of One CityPlace, 18th Floor, Hartford, Connecticut.  Both entities are registered as broker-dealers under the Connecticut Uniform Securities Act and are under common control.  The Stipulation and Agreement claimed that 1) Walnut Street Securities, Inc. violated Section 36b-6(f) of the Act by filing to provide written notice to the Commissioner prior to the termination of business activity at four registered branch offices; 2) Tower Square Securities, Inc. violated Section 36b-6(f) of the Act by failing to provide written notice to the Commissioner prior to the termination of business activity at one registered branch office; and 3) both firms violated Section 36b-31-6f(b) of the Regulations by failing to enforce a system for supervising the activities of their agents and Connecticut office operations that was reasonably designed to achieve compliance with Section 36b-6(f) of the Act.  Pursuant to the Stipulation and Agreement, Walnut Securities, Inc. and Tower Square Securities, Inc. were fined $2,000 and $500, respectively, for failing to notify the Commissioner of the branch closures.  In addition, under the Stipulation and Agreement, both firms agreed to jointly and severally remit $1,500 as a fine for failing to enforce an adequate supervisory system.

  
         Dated:  Tuesday, March 7, 2006
 
         John P. Burke
         Commissioner