The Department of Banking News Bulletin
Bulletin # 2239
Week Ending January 19, 2007
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.
Fairfield County Bank Corp
*712, 714, 728 Boston Post Road
Darien, CT 06820
Guilford Savings Bank
840 Boston Post Road
Old Saybrook, CT 06475
|*Wrong address listed in Bulletin 2238.|
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
d/b/a Music & Mas
56 South Main Street
Norwalk, CT 06850
On January 10, 2007, the Commissioner entered into a Settlement Agreement with Shorepoint Mortgage, LLC d/b/a Shore Pointe Mortgage (“Shorepoint”). The Settlement Agreement was based on an investigation by the Consumer Credit Division. As a result of such investigation the Commissioner alleged that Shorepoint acted as a first and secondary mortgage broker at 1255 Middlebury Road, Middlebury, Connecticut without the required licenses. Pursuant to the Settlement Agreement, Shorepoint agreed not to act as a first or secondary mortgage broker in Connecticut without obtaining the required license for each location where it conducts business. In addition, Shorepoint agreed to remit to the Department of Banking $9,000 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist, Notice of Intent to Fine Issued
On January 11, 2007, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against HCH Cypress, LLC, whose last known address is c/o Five Mile Group, 694 Boston Post Road, Darien, Connecticut and its managing member, Bradley W. Kabbash of Greenwich, Connecticut. The action alleged that, in 2002, the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered limited liability company interests and promissory notes. In addition, the action alleged that the respondents violated the antifraud provisions in Section 36b-4 of the Act by providing inadequate disclosures to investors. The action claimed that respondent Kabbash falsely represented to investors that the investment proceeds would be used to finance the acquisition of hospitals and ambulatory surgical centers when, in fact, the funds were used to pay respondent Kabbash’s personal expenses. The respondents were 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 March 8, 2007.
Unregistered Investment Adviser and Investment Adviser Agent
Directed to Refrain from Unregistered Investment Advisory Activity
On January 11, 2007, the Commissioner entered a Consent Order with respect to Richard W. Wiegand and Condor Investment Advisors, LLC. The Consent Order alleged that Condor Investment Advisors, LLC and Richard W. Wiegand transacted business as an investment adviser and as an investment adviser agent, respectively, absent registration under the Connecticut Uniform Securities Act. In mitigation, Richard W. Wiegand and Condor Investment Advisors, LLC maintained that: 1) Wiegand inadvertently failed to register, believing that his prior registrations as a broker-dealer agent and investment adviser agent with an unrelated firm covered his activities with Condor Investment Advisors, LLC; 2) Wiegand and Condor Investment Advisors, LLC did not receive any compensation for their investment advisory activities; and 3) their only clients were members of Wiegand’s family and a longtime acquaintance of Wiegand. The Consent Order acknowledged that Wiegand and Condor Investment Advisors, LLC has provided documentation evidencing that their income was insufficient to pay the fine that otherwise would have been levied for their alleged unregistered activity.
The Consent Order 1) directed Wiegand and Condor Investment Advisors, LLC to cease and desist from violative conduct; 2) required that Wiegand and Condor Investment Advisors, LLC consult with legal counsel prior to rendering investment advisory services or holding themselves out as performing such services; and 3) assessed a $250 administrative penalty against Wiegand.
Dated: Tuesday, January 23, 2007
Howard F. Pitkin