The Department of Banking News Bulletin
Bulletin # 2219
Week Ending September 1, 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 email@example.com. 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.
Farmington Savings Bank
73 Broad Street
New Britain, CT 06053
888 Farmington Avenue
Bristol, CT 06011
SECURITIES FORUM 2006
The Securities and Business Investments Division, in conjunction with the Securities Advisory Council to the Department, is sponsoring its eighteenth annual Securities Forum conference on Thursday, October 26, 2006 at the Crowne Plaza Hotel and Conference Center in Cromwell, Connecticut. A timely and outstanding agenda of panel presentations, featuring expert speakers, will help financial industry professionals keep abreast of current and evolving regulatory developments. This year’s keynote speaker is Zachary J. Bagdon, Executive Director of the International Center for Finance at the Yale School of Management. The conference includes a luncheon and course materials. For further program and registration information, visit the department's Web site or call the agency at (860) 240-8176.
On August 29, 2006, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by Webster Financial Corporation of all of the issued and outstanding voting securities of NewMil Bancorp, Inc., and indirectly NewMil Bank. The acquisition will take place through the merger of NewMil Bancorp, Inc., with and into Webster Financial Corporation. Immediately following the acquisition, pursuant to Section 36a-126(b) of the Connecticut General Statutes, NewMil Bank will merge with and into Webster Bank, N.A., a national banking association that is a wholly-owned subsidiary of Webster Financial Corporation.
CONSUMER CREDIT DIVISION ACTIVITY
Order of Summary Suspension, Notice of Intent to Revoke Consumer
Collection Agency License, Notice of Intent to Issue Order to Cease
and Desist, Notice of Intent to Impose Civil Penalty
and Notice of Right to Hearing Issued
On August 29, 2006 the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”), In the Matter of: Go-More Financial, Inc.
(“Respondent”), of 605 Highway 55 E., Buffalo, Minnesota. In the Notice, the Commissioner orders that the license of Respondent to act within Connecticut as a consumer collection agency be summarily suspended pending proceedings for revocation. The Summary Suspension was based on Respondent’s financial condition, Respondent’s trust account that has been overdrawn in excess of its bond and Respondent’s use of a trust account for operating or other purposes. The Notice also states that the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitute sufficient grounds to revoke Respondent’s license to act as a consumer collection agency, to issue an order to cease and desist and impose a civil penalty. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice. A copy of the notice can be obtained from the department's website, www.ct.gov/dob
or by contacting the department's Legal Division.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Ohio Company Assessed $13,150 for Unregistered Broker-dealer Activity
On August 29, 2006, the Commissioner entered a Consent Order with respect to The Huntington Investment Company, an applicant for broker-dealer registration located at 41 South High Street, Seventh Floor, Columbus Ohio. The Consent Order alleged that from at least October, 2000 through February 2006, the firm transacted business as a broker-dealer absent registration under the Connecticut Uniform Securities Act and employed unregistered broker-dealer agents. The firm claimed that, during 2005, a back office employee of the firm had circumvented internal procedures governing Connecticut broker-dealer registration requirements and had received a reprimand for such conduct. The Consent Order directed the firm to 1) cease and desist from regulatory violations; 2) engage an experienced consultant to conduct a compliance audit of the firm’s operations; and 3) provide the department with quarterly reports for two years describing any complaints, actions or proceedings involving Connecticut residents. In addition, the Consent Order required that the firm pay $13,150 to the department. Of that amount, $10,000 constituted an administrative fine, $1,950 represented past due registration fees; $700 represented the disgorgement of known commissions earned during the period of unregistered activity; and $500 constituted reimbursement for agency investigative costs.
Agent Registration Conditioned Following NASD Suspension
On August 29, 2006, the Commissioner entered a Consent Order Conditioning Registration as an Agent with respect to Donatas Vildzius, an applicant for broker-dealer agent registration under the Connecticut Uniform Securities Act. The Consent Order was predicated on claims that, in 2006, Donatas Vildzius had been suspended by the National Association of Securities Dealers for 30 days and ordered to pay $16,000 in restitution to a Connecticut customer following allegations that he engaged in excessive trading and had exercised discretion without the customer’s prior written authorization (Acceptance Waiver and Consent; Docket/Case No. E112003069901). Vildzius’ employing firm, Source Capital Group, Inc., signed off on various supervisory obligations as a precondition to registering Vildzius in Connecticut.
The Consent Order required that Vildzius adhere to the restitutionary payment schedule mandated by the NASD, and file periodic status reports with the department concerning payments made to the Connecticut investor. In addition, the Consent Order prescribed specific supervisory controls to be implemented by Source Capital Group, Inc. with respect to Vildzius’ securities activities. Source Capital Group, Inc. was also required for two years to notify the department each quarter of any complaints, actions or proceedings involving Vildzius. Donatas Belys Vildzius became registered as a broker-dealer agent of Source Capital Group, Inc. in Connecticut on August 29, 2006.
Dated: Wednesday, September 6, 2006
John P. Burke