DOB: News Bulletin 2322 - August 22, 2008

The Department of Banking News Bulletin 

Bulletin # 2322
Week Ending August 22, 2008

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 2008 Supplement to the 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
8/18/08
Simsbury Bank & Trust
  Company, Simsbury
250 Albany Turnpike
Canton, CT  06019
approved to
convert from
full to limited
service branch
 
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
 
Date Check Casher Location Activity
8/20/08
Luvan Services LLC
789 East Main Street
Stamford, CT  06902
approved

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist and Notice of Intent to Fine Issued
 
On August 15, 2008, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Markland Technologies, Inc. of 222 Metro Center Boulevard, Warwick, Rhode Island and its representative Chad Verdi of 100 Pheasant Drive, East Greenwich, Rhode Island.  The corporation previously maintained an address at 90 Grove Street, Ridgefield, Connecticut.  The action alleged that in September 2004, respondent Verdi sold $4 million of Markland Technologies, Inc. convertible debentures to at least one Connecticut investor at a time when respondent Verdi was not registered as an agent of issuer under the Connecticut Uniform Securities Act.  Markland Technologies, Inc. was also charged with employing an unregistered agent of issuer.  In addition, the action alleged that respondent Verdi made a materially false or misleading statement in an agency investigation by testifying that his only role was to verify the personal information of investors who had previously contacted the corporation.  According to the Order to Cease and Desist and Notice of Intent to Fine, in reality, respondent Verdi actively solicited investments from new investors, regularly sent out and received documents regarding the solicitation and actively participated in investment-related negotiations.  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 October 14, 2008.
 

Order to Cease and Desist and Notice of Intent to Fine Issued
 
On August 15, 2008, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Multivend, LLC d/b/a Vendstar of 880 Grand Boulevard, Deer Park, New York.  The action alleged that, from at least October 31, 2002 to August 9, 2007, the respondent sold unregistered candy vending distributorship business opportunities to at least eight Connecticut purchasers in violation of the Connecticut Business Opportunity Investment Act.  The respondent was 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 September 24, 2008.
 
Order to Cease and Desist and Notice of Intent to Fine Issued
 
On August 15, 2008, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Vision Travel, Inc. a/k/a Global Vision Travel of First Street, Suite 304, Metro Office Park #7, Guaynabo, Puerto Rico.  The action alleged that, from at least August 16, 2006 to November 3, 2006, the respondent sold unregistered multi-level marketing virtual travel agency business opportunities to at least eight Connecticut purchasers in violation of the Connecticut Business Opportunity Investment Act.  The respondent was 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 September 23, 2008.
 
Broker-dealer Fined $50,000 for Regulatory Violations
 
On August 18, 2008, the Commissioner entered a Consent Order with respect to New Castle Financial Services LLC, a Connecticut-registered broker-dealer located at 535 Broad Hollow Road, Suite A-2, Melville, New York.  The Consent Order alleged that 1) from September 1, 2006 to March 1, 2007, the firm violated Section 36b-6 of the Connecticut Uniform Securities Act by employing at least four unregistered agents and by transacting business from an unregistered branch office at 4 Old Mill Plain Road, Danbury, Connecticut; 2) between February 1, 2005 and April 30, 2006, the firm violated Section 36b-16 of the Act by selling unregistered, non-exempt securities to four Connecticut residents; 3) the firm improperly had at least one Connecticut client pre-sign incomplete forms; 4) the firm utilized research materials, sales presentations and/or sales scripts in a deceptive or misleading manner; and 5) the firm failed to establish, enforce and maintain an adequate supervisory system.
 
The Consent Order fined the firm $50,000 and directed that it cease and desist from regulatory violations.  The Consent Order also required that the firm pay $50,000 to the National White Collar Crime Center for the purpose of training Connecticut regulatory and law enforcement personnel in the investigation, prevention and prosecution of financial fraud perpetrated on Connecticut senior citizens.  The Consent Order also restricted the firm’s Connecticut business activities as follows:  1) For three years, securities products sold by the firm would be limited to investment company, governmental and exchange-listed securities; 2) for three years, the firm would not maintain any discretionary accounts for Connecticut clients; 3) for three years, the firm would refrain from selling to any Connecticut customer any private placement or initial public offering of New Castle Financial Services LLC unless the Connecticut customer was an “accredited investor” as defined in federal Regulation D; and 4) for two years, the firm would not open any new margin accounts or accounts approved for options trading for Connecticut customers who were not accredited investors.
 
       Dated:  Tuesday, August 26, 2008
 
       Howard F. Pitkin
       Banking Commissioner