The Department of Banking News Bulletin
Bulletin # 2268
Week Ending August 10, 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.
Salisbury Bank and Trust Company
5 Dover Village Plaza
Dover Plains, NY 12522
Newtown Savings Bank
1450 Southford Road
Southbury, CT 06488
CONSUMER CREDIT DIVISION ACTIVITY
On June 26, 2007, the Commissioner entered into a Settlement Agreement with Aegis Lending Corporation (“Aegis”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that: (1) Aegis employed or retained at least 94 originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes (“General Statutes”); (2) from August 2003 through October 2005, in violation of Section 36a-498a of the General Statutes, Aegis imposed prepaid finance charges on 26 mortgage loans issued to Connecticut consumers that exceeded the aggregate five percent maximum amount that may be charged or imposed on the initial principal loan amount and refinancings, and on additional proceeds on refinancings by Aegis or an affiliate within two years from the date of the initial loan; and (3) from September 12, 2002 through June 23, 2006, Aegis failed to return the appraisal fee paid by Connecticut consumers within 20 calendar days after Connecticut consumers had rescinded 79 mortgage loan transactions, in violation of Section 226.23(d) of Regulation Z. On June 18, 2007, Aegis made a contribution to the State Regulatory Registry LLC, in the amount of $94,000, to support the Nationwide Mortgage Licensing System, jointly sponsored by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. Pursuant to the Settlement Agreement, Aegis agreed to cease and desist from engaging in acts in violation of Sections 36a-486(b), 36a-511(b) and 36a-498a of the General Statutes and Section 226.23(d) of Regulation Z and to remit to the Department of Banking $52,500 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Investment Adviser Registration Denied
Investment Adviser Agent Registration Denied
On July 27, 2007, following a hearing, the Commissioner issued Findings of Fact, Conclusion of Law and Order in the matter of Moran Capital Management, Inc. of 48 Route 6, Suite G01, Yorktown Heights, New York, and Frederick Augustus Moran, the firm’s president and CEO. The action had been preceded by a March 13, 2007 Notice of Intent to Deny Registration as Investment Adviser with respect to the firm, and a March 13, 2007 Notice of Intent to Deny Registration as Investment Adviser Agent with respect to Frederick Augustus Moran.
In denying the firm’s investment advisory registration, the Commissioner found that 1) on April 4, 1997, the U.S. District Court for the Southern District of New York entered a Final Judgment of Permanent Injunction and Other Equitable Relief against Frederick Augustus Moran (SEC v. Frederick Augustus Moran et al., Case No. 95 Civ. 4472 (BN)); and 2) the firm falsely answered “no” to a Form ADV question concerning prior injunctions involving advisory affiliates, which would have included Frederick Moran. In denying Frederick Augustus Moran’s registration as an investment adviser agent, the Commissioner found that Frederick Augustus Moran had been enjoined from, among other things, violating the antifraud provisions of Section 206(2) of the Investment Advisers Act of 1940 (SEC v. Frederick Augustus Moran et al., Case No. 95 Civ. 4472 (BN)).
Dated: Tuesday, August 14, 2007
Howard F. Pitkin