DOB: News Bulletin 2201 - April 28, 2006

The Department of Banking News Bulletin 

Bulletin # 2201
Week Ending April 28, 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
4/26/06
Jewett City Savings Bank
Jewett City
560 Hartford Pike
Dayville, CT  06241
approved

NEW BANK ACTIVITY

On April 24, 2006, pursuant to the provisions of Section 36a-70 of the Connecticut General Statutes, Darien Rowayton Bank, Darien, was authorized to commence and transact the business of a bank and trust company and officially opened at 979 Post Road, Darien, Connecticut.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Florida Company Barred From Selling Business Opportunities
 in Connecticut for Five Years, Fined $25,000, Ordered to Extend $100,000
 Rescission Offer to Connecticut Purchaser-Investors
 
On April 26, 2006, the Commissioner entered a Consent Order resolving allegations contained in a September 16, 2005 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 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing had 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.
 
Without admitting or denying the Commissioner’s allegations, Candy King of America, Inc. agreed to the entry of a Consent Order 1) rendering the September 16, 2005 Order to Cease and Desist permanent; 2) barring Candy King of America, Inc. from offering or selling business opportunities in Connecticut for five years; 3) requiring Candy King of America, Inc. to pay a $25,000 fine; and 3) directing that Candy King of America, Inc. offer rescission in the amount of approximately $100,000 to affected Connecticut purchaser-investors and repay those purchaser-investors electing rescission.
 
Florida Man Barred for Five Years From Acting as an Officer
or Director of Any Entity Selling Business Opportunities
 in Connecticut, Fined $7,500
 
On April 26, 2006, the Commissioner entered a Consent Order resolving allegations contained in a September 16, 2005 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 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing had 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.
 
Without admitting or denying the Commissioner’s allegations, Stanley L. Gladstone agreed to the entry of a Consent Order rendering the September 16, 2005 Order to Cease and Desist permanent; fining him $7,500; and barring him for five years from acting as an officer or director of any entity that advertises, contracts, promotes, offers or sells any business opportunity in Connecticut.
 
 
         Dated:  Tuesday, May 2, 2006
 
         John P. Burke
         Commissioner