The Department of Banking News Bulletin
Bulletin # 2234
Week Ending December 15, 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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. 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.
Citizens Bank of Connecticut
One Mohegan Sun Blvd
Uncasville, CT 06382
Lloyds TSB Offshore Limited
*263 Tresser Blvd, 9th floor
Stamford, CT 06901
CREDIT UNION ACTIVITY
Field of Membership
On November 29, 2006, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, Corporate American Family Credit Union, Inc., Elgin, Illinois, requested approval to expand its field of membership in the State of Connecticut to include employees of Pete & Steve Contractors & Engineers, Inc., Terryville.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Agent Registration Conditioned Following NASD Suspension
On December 13, 2006, the Commissioner entered a Consent Order Conditioning Registration as an Agent with respect to Timothy Robin Touloukian, an applicant for broker-dealer agent registration under the Connecticut Uniform Securities Act. The Consent Order was predicated on claims that, in 2006, Timothy Touloukian had been suspended by the National Association of Securities Dealers for 45 days and fined $15,000 based on allegations that Touloukian, acting for the benefit of four hedge fund clients, violated NASD Rule 2110 by using different broker codes to circumvent mutual fund policies against excessive market timing (Acceptance, Waiver and Consent number EAF0400370003). The suspension concluded on September 20, 2006. Touloukianís employing firm, Spencer Clarke LLC, signed off on various supervisory obligations as a precondition to registering Touloukian in Connecticut.
The Consent Order restricted Touloukianís Connecticut securities business for three years to securities listed on the New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market; securities issued by investment companies regulated under the Investment Company Act of 1940; government securities; and exchange-listed options. In addition, the Consent Order prescribed specific supervisory controls to be implemented by Spencer Clarke LLC with respect to Touloukianís securities activities. Spencer Clarke LLC was also required for three years to notify the department each quarter of any complaints, actions or proceedings involving Touloukian. The Consent Order also prohibited Touloukian from 1) engaging in conduct that would constitute a violation of law or of Spencer Clarke LLCís supervisory and compliance procedures; and 2) engaging in any act or practice to circumvent restrictions on market timing imposed by any issuer of securities, insurance company or securities brokerage firm, including, without limitation, employing multiple broker identifying numbers, multiple customer accounts, accounts coded as confidential, multiple branch codes and multiple clearing firms, and misrepresenting the identities of brokerage customers or the agent(s) servicing customer accounts. Timothy Robin Touloukian became registered as a broker-dealer agent of Spencer Clarke LLC in Connecticut on December 13, 2006.
Dated: Tuesday, December 19, 2006
Howard F. Pitkin