DOB: News Bulletin 2206 - June 2, 2006

The Department of Banking News Bulletin 

Bulletin # 2206
Week Ending June 2, 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 Written comments will be considered only if they are received within ten days from the date of this bulletin.

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
The Milford Bank
2366 Main Street
Stratford, CT  06615
Pursuant to Sections 1-225 and 36a-70(i) of the 2006 Supplement to the General Statutes, on June 7, 2006, a special meeting will be held for the purpose of considering the application of the organizer of Higher One Bank, New Haven, Connecticut, for a six-month extension of the Temporary Certificate of Authority. The meeting is scheduled to be held at 9:30 a.m., at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut.
Harbor Financial Services, LLC Assessed $12,750
for Unregistered Broker-dealer Activity
On May 31, 2006, the Commissioner entered a Consent Order with respect to Harbor Financial Services, LLC, an applicant for broker-dealer registration located at 1555 University Boulevard South, Suite B, Mobile, Alabama.  The Consent Order alleged that, contrary to representations made in its registration application, the firm had transacted business in Connecticut absent registration under the Connecticut Uniform Securities Act and had employed unregistered agents.  The Consent Order also alleged that the firmís unregistered activity continued while the registration was pending, and that the firm had transacted business from an unregistered branch office.  The firm maintained that a large portion of its Connecticut brokerage activity had consisted of automatic dividend reinvestment in mutual fund shares for clients who had transferred their accounts to the firm from another broker-dealer.
The Consent Order directed the firm to cease and desist from regulatory violations and required that it pay $12,750 to the department.  Of that amount, $10,000 constituted an administrative fine, $2,000 represented disgorgement of commissions earned as a result of the unregistered activity, $250 represented past due broker-dealer and agent registration fees and $500 constituted reimbursement for agency investigative costs.  In addition, the Consent Order required that the firm implement revised supervisory and compliance procedures and provide the department with quarterly reports for two years concerning any securities-related complaints, actions or proceedings involving Connecticut residents.  The firm became registered as a broker-dealer under the Connecticut Uniform Securities Act on May 31, 2006.

         Dated:  Tuesday, June 6, 2006
         John P. Burke