DOB: News Bulletin 2202 - May 5, 2006

The Department of Banking News Bulletin 

Bulletin # 2202
Week Ending May 5, 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
5/01/06
Connecticut Bank & Trust
  Company, Hartford
66 Cedar Street
Newington, CT  06111
approved
6/26/06
Prime Bank
Orange
* 270 Amity Road
   Woodbridge, CT
opening
date
* Limited Branch (LPO)
 
NOTICE OF INTENT TO AMEND REGULATIONS
 
The Commissioner is issuing a Notice of Intent to Amend Regulations concerning collection practices of creditors.  A copy of the proposed regulations is available online.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
New York Company Ordered to Cease and Desist
from Regulatory Violations in Conjunction with Promissory Note Sales;
Notice of Intent to Fine Issued
 
On April 27, 2006, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing with respect to Charter One Capital Holding, Inc. of 11 Broadway, Suite 1015, New York, New York.  The action alleged that Charter One Capital Holding, Inc. issued and sold unregistered promissory notes from January 2003 to October 2005 in violation of Section 36b-16 of the Connecticut Uniform Securities Act.  In addition, the action claimed that the respondent violated the antifraud provisions of the Act by 1) failing to disclose to investors the risks associated with the investment in light of the issuerís precarious financial position and the fact that the issuer had not been paying interest on the notes; and 2) misrepresenting that certain individuals were associated with the respondent when, in actuality, those individuals had declined the respondentís request for them to become officers or directors.  Charter One Capital Holding, Inc. 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 July 11, 2006.
 
Ex-Broker-dealer Agent Ordered to Cease and Desist
from Regulatory Violations;
Notice of Intent to Fine Issued
 
On April 27, 2006, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing with respect to Stephen Roy Desiderio of Staten Island, New York.  The respondent was formerly a broker-dealer agent of Independent Securities Investors Corporation.  The action claimed that the respondent engaged in a private securities transaction in violation of Section 36b-31-6e of the Regulations under the Connecticut Uniform Securities Act.  Stephen Roy Desiderio was afforded an opportunity for a hearing on the Order to Cease and Desist.  A hearing on the Notice of Intent to Fine has been scheduled for July 18, 2006.
 
Notice of Intent to Revoke Registration
as Agent and Notice of Intent to Fine Issued
 
On May 4, 2006, the Commissioner issued a Notice of Intent to Revoke Registration as Agent and Notice of Intent to Fine with respect to Justin Matthew Dever, a former broker-dealer agent of Independent Securities Investors Corporation.  Connecticut law permits the Commissioner to initiate revocation proceedings within one year following the withdrawal of a registration.  The action alleged that the respondent 1) violated Section 36b-16 of the Connecticut Uniform Securities by selling unregistered securities of Bio-Solutions Manufacturing and Stake Technology to Connecticut investors; 2) engaged in unauthorized trading and effected transactions for a Connecticut customer who was then deceased; 3) violated Section 36b-31-6e of the Regulations under the Act by engaging in private securities transactions involving a promissory note issued by Charter One Capital Holding, Inc.; and 4) withheld material information from the department in conjunction with an investigation.  The respondent 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 July 25, 2006.
 
         Dated:  Tuesday, May 9, 2006
 
         John P. Burke
         Commissioner