DOB: News Bulletin 2241 - February 2, 2007

The Department of Banking News Bulletin 

Bulletin # 2241
Week Ending February 2, 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.



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
1/30/07
Rockville Bank
Rockville
43 Prospect Hill Road
East Windsor, CT  06088
approved
2/06/07
Guilford Savings Bank
Guilford
840 Boston Post Road
Old Saybrook, CT  06475
opening
date

DE NOVO LIMITED BRANCH
 
On February 1, 2007, pursuant to Sections 36a-412(a)(2) and 36a 145(c)(1) of the Connecticut General Statutes, Mellon Trust of New England, N.A., a national banking association with its main office in Boston, Massachusetts, filed an application to establish a de novo limited branch to operate under the name Mellon Private Wealth Management, at 406 Farmington Avenue, Farmington, Connecticut.
 
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
 
Date Check Casher Location Activity
02/01/07
Sharada Khattri Chettri LLC
1260 Main Street
East Hartford, CT  06108
approved

CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist, Order Revoking Secondary Mortgage
Lender/Broker License and Order Imposing Civil Penalty
 
On January 25, 2007, the Commissioner issued an order to cease and desist against Paul E. Dwyer, order revoking the first mortgage lender/broker license of Monetary Funding Group of Connecticut, LLC (“MFGC”), order revoking the secondary mortgage lender /broker license of Monetary Funding Group, Inc. (“MFG”) and an order imposing a civil penalty of $100,000 against Paul E. Dwyer (“Order”) In the Matter of: Paul E. Dwyer, Monetary Funding Group of Connecticut, LLC, Monetary Funding Group, Inc. (“Respondents”).  MFGC and MFG are located at 151 Pacific Street, Bridgeport, Connecticut.  The action was based on the allegation that as Managing Member of MFGC and President of MFG, Respondent Dwyer failed to respond to correspondence sent by the department which constitutes a failure to cooperate and, MFGC’s and MFG’s failure to pay civil judgments.  A copy of the Order can be obtained from the department's website, www.ct.gov/dob or by contacting the department's Legal Division.
 
Amended and Restated Temporary Order To Cease and Desist,
Amended and Restated Notice of Intent To Issue Order to Cease
and Desist, Amended and Restated Notice of Intent to Impose
Civil Penalty, Order of Summary Suspension, Notice of Intent to
Refuse to Renew First and Secondary Mortgage Lender/Broker
License And Notice of Right to Hearing
 
On January 30, 2007 the Commissioner issued an Amended and Restated Temporary Order To Cease and Desist, Amended and Restated Notice of Intent To Issue Order to Cease and Desist, Amended and Restated Notice of Intent to Impose Civil Penalty, Order of Summary Suspension, Notice of Intent to Refuse to Renew First and Secondary Mortgage Lender/Broker Licenses and Notice of Right to Hearing (“Order”), In the Matter of: Mortgage Lenders Network USA, Inc. (“Respondent”).  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order.  A copy of the Order 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
Broker-dealer Registration Summarily Suspended, Withdrawal Request
Denied, Following Claims of Unregistered Agent Activity,
Unregistered Security Sales and Failure to Produce Records;
Notice of Intent to Revoke Registration and
Notice of Intent to Fine Issued
 
On January 26, 2007, the Commissioner issued a Notice of Intent to Revoke Registration as Broker-dealer, Order Summarily Suspending Registration, Order Denying Withdrawal of Registration as Broker-dealer and Notice of Intent to Fine against Great Eastern Securities, Inc., a broker-dealer registered under the Connecticut Uniform Securities Act.  The firm is located at 50 Broad Street, Suite 1401, New York, New York.  The action was based on allegations that 1) from at least September 2005 forward, the firm employed six unregistered agents in contravention of Section 36b-6(b) of the Act; 2) the firm violated Section 36b-16 of the Act by selling securities of AFV Solutions, Inc., Ad Venture Partners, Inc., Fidelis Energy, Inc., Produce Safety and Security International, Inc. and Youbet.com, Inc. when such securities were not registered under the Act or the subject of an exemptive claim or claim of covered security status; 3) the respondent violated Section 36b-31-6f(b) of the Regulations by failing to enforce and maintain adequate supervisory procedures; 4) the respondent violated Section 36b-31-14a(a) of the Regulations under the Act by failing to keep true, accurate and current records; and 5) the firm violated Section 36b-14(d) of the Act and Section 36b-31-14f(b)(3) of the Regulations by not providing copies or computer printouts of records requested by the Commissioner.
 
The registration of Great Eastern Securities, Inc. was summarily suspended effective January 26, 2007, and the firm’s January 22, 2007 application to withdraw its registration was denied pending resolution of the matters alleged in the action.  The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Broker-dealer.  A hearing on the Notice of Intent to Fine has been scheduled for March 27, 2007.
 
New York Firm Agrees to Tighten Supervisory Controls,
Pay $25,000 Following Claims of Unregistered Activity
 
On January 29, 2007, the Commissioner entered into a Stipulation and Agreement with Millenco, L.L.C., an applicant for broker-dealer registration having its principal office at 666 Fifth Avenue, 86th Floor, New York, New York.  The Stipulation and Agreement alleged that at various times in 2005 and 2006, the firm had been transacting business from a location in Greenwich, Connecticut at a time when neither the firm nor its affected agents were registered under the Connecticut Uniform Securities Act.  The Stipulation and Agreement added that such conduct, combined with a December 1, 2005 cease and desist order entered against certain control persons of the firm by the Securities and Exchange Commission, would support the initiation of administrative proceedings under Sections 36-15 and 36b-27 of the Act.
 
Pursuant to the Stipulation and Agreement, the firm agreed to 1) engage a Connecticut Compliance Supervisor to focus on the firm’s Connecticut operations for a two year period; 2) retain an independent consultant to review the firm’s internal procedures for regulatory compliance; and 3) pay $25,000 to the department.  Of the $25,000 remitted, $20,000 constituted an administrative fine and $5,000 represented reimbursement for agency investigative costs.
 
Millenco, L.L.C. became registered as a broker-dealer under the Act on January 29, 2007.
 
 
       Dated:  Tuesday, February 6, 2007
 
       Howard F. Pitkin
       Banking Commissioner