The Department of Banking News Bulletin
Bulletin # 2262
Week Ending June 29, 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.
99 Linwood Avenue
Colchester, CT 06415
Newtown Savings Bank
200 Leavenworth Road
Shelton, CT 06484
On July 17, 2007, pursuant to Sections 1-225 and 36a-70(i) of the Connecticut General Statutes, a special meeting of the Banking Commissioner will be held for the purpose of considering the application of the organizer of Quinnipiac Bank & Trust Company, Hamden, for a nine-month extension of its Temporary Certificate of Authority. The meeting is scheduled to be held at 10:00 a.m. at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist and Notice of Intent to Fine Issued
Following Claims of Unregistered Security Sales, Antifraud Violations
On June 22, 2007, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Argyle Capital, LLC of 239 Glenville Road, Suite 300, Greenwich, Connecticut and its sole member, Quintin Geoffrey Marshall of Stamford, Connecticut. The action alleged that 1) in 2000, the respondents sold unregistered securities of Argyle Capital, LLC in contravention of Section 36b-16 of the Connecticut Uniform Securities Act; and 2) the respondents violated the antifraud provisions in Section 36b-4(a) of the Act by guaranteeing a return on monies invested and failing to disclose investment risks. 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 August 13, 2007.
New York Firm Fined $600,000 for Multiple Regulatory Violations
On June 22, 2007, the Commissioner entered an Order Imposing Fine with respect to Great Eastern Securities, Inc. of 50 Broad Street, Suite 1401, New York, New York. The Order Imposing Fine had been preceded by a January 26, 2007 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. The firm’s broker-dealer registration was revoked on March 22, 2007.
In fining the firm $600,000, the Commissioner found that 1) the respondent employed unregistered agents in violation of Section 36b-6(b) of the Connecticut Uniform Securities Act; 2) the respondent violated Section 36b-16 of the Act by selling unregistered securities; 3) the respondent violated Section 36b 31 6f(b) of the Regulations under the Act by failing to enforce and maintain adequate supervisory procedures; 4) the respondent violated Section 36b-31-14a(a) of the Regulations 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 records requested by the Commissioner. Great Eastern Securities, Inc. did not appear or contest the imposition of the fine.
CONSUMER CREDIT DIVISION ACTIVITY
On June 22, 2007, the Commissioner entered into a Settlement Agreement with MortgageIT, Inc. (“MortgageIT”). The Settlement Agreement was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that MortgageIT employed or retained at least 48 originators without registering them, in violation of Sections 36a-486(b) and 36a 511(b) of the Connecticut General Statutes. Pursuant to the Settlement Agreement, MortgageIT agreed to cease and desist from engaging in acts in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes. In addition, on May 31, 2007 MortgageIT made a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $48,000 to support the Nationwide Mortgage Licensing System, jointly sponsored by the CSBS and the American Association of Residential Mortgage Regulators.
Order Revoking Consumer Collection Agency License
On June 29, 2007, the Commissioner issued an Order Revoking Consumer Collection Agency License (“Order”) In the Matter of: Income Recovery Services, LLC
(“Respondent”), of 25 Fenwood Road, West Hartford, Connecticut. The action was based on the fact that Respondent failed to maintain a surety bond in violation of Section 36a-802(a) of the Connecticut General Statutes. Respondent was given an opportunity to request a hearing and failed to request a hearing in this matter. A copy of the Order can be obtained from the department's website
, or by contacting the department's Legal Division.
An open meeting of the Governor’s Task Force on Sub-Prime Lending will be held on Tuesday, July 10, 2007 to give the public an opportunity to address the task force. The meeting will be held at 5:00 p.m. in Room 2C of the Legislative Office Building, 300 Capitol Avenue, Hartford, Connecticut.
Dated: Tuesday, July 3, 2007
Howard F. Pitkin