The Department of Banking News Bulletin
Bulletin # 2333
Week Ending November 7, 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.
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.
MAIN OFFICE RELOCATION
Jewett City Savings Bank
353 Route 165
Preston, CT 06365
Naugatuck Savings Bank
*Nonnewaug High School
5 Minortown Road
Woodbury, CT 06798
|*Special Needs Limited Branch|
On November 5, 2008, pursuant to Section 36a-81 of the Connecticut General Statutes, The Bank of Fairfield, Fairfield, Connecticut, requested approval to relocate its main office from 2248 Black Road Turnpike, Fairfield, to 2150 Post Road, Fairfield. Also on November 5, 2008, The Bank of Fairfield filed notice with the Commissioner, pursuant to Section 36a-145(b)(2) of the 2008 Supplement to the General Statutes, advising that the office at 2248 Black Road Turnpike, Fairfield, will remain open as a branch of the Bank.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
Connecticut State Check
Cashing Services, Inc.
176 Columbus Blvd
New Britain, CT 06050
On October 30, 2008, the Commissioner entered into a Settlement Agreement with Mortgage Matters, LLC (“Mortgage Matters”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Mortgage Matters employed or retained an originator without registering, in violation of Section 36a-486(b) of the 2008 Supplement to the General Statutes. On September 17, 2008 and September 29, 2008, Mortgage Matters voluntarily 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 $1000 to support the Nationwide Mortgage Licensing System, jointly sponsored by the CSBS and the American Association of Residential Mortgage Regulators. Upon entry of the Settlement Agreement, the matter was resolved.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Conditioning Registration as an Investment Adviser and
as an Investment Adviser Agent Issued
On November 4, 2008, the Commissioner entered a Consent Order conditioning the registration of RKS Advisors, LLC as an investment adviser under the Connecticut Uniform Securities Act and the registration of Robert Keith Strauss as an investment adviser agent of the firm. The firm is located at 184 Atlantic Street, Stamford, Connecticut. The Consent Order alleged that the firm and Robert Strauss failed to disclose on the firm’s Form ADV the October 20, 2006 entry of an Order of Investigation by the State of Oklahoma against Strauss and Emerging Money Corporation, an entity controlled by Strauss. The matters described in the Oklahoma Order of Investigation concerned the offer, sale and/or purchase of securities in connection with a “Stock-to-Cash Program” and were resolved via a June 9, 2008 Agreement between the State of Oklahoma, Emerging Money Corporation and Strauss. The Consent Order also alleged that Strauss listed himself as an investment adviser representative of RKS Advisors, LLC on the website of Emerging Money Corporation at a time when RKS Advisors, LLC was not registered as an investment adviser and Strauss was not registered as an investment adviser agent of the firm under the Connecticut Uniform Securities Act.
The Consent Order Conditioning Registration as an Investment Adviser and as an Investment Adviser Agent 1) directed Strauss and RKS Advisors, LLC to refrain from marketing the Stock-to-Cash or any similar program in or from Connecticut and from engaging, employing or affiliating with any individuals or entities selling or offering the Stock-to-Cash program or any similar program in or from the state; and 2) limited the investment advisory activities of RKS Advisors, LLC and Strauss for two years to exchange listed securities, commercial paper, certificates of deposit, corporate debt, municipal securities, investment company securities, United States government securities and insurance products subject to regulation by the Connecticut Insurance Commissioner. In addition, the Consent Order required that RKS Advisors, LLC and Strauss provide the agency with quarterly reports for two years concerning any securities-related complaints, actions or proceedings involving RKS Advisors, LLC or Strauss. Finally, the Consent Order required that RKS Advisors, LLC and Strauss pay $3,500 to the department. Of that amount, $2,500 constituted an administrative fine and $1,000 would be applied to defray agency investigative costs.
RKS Advisors, LLC became registered as an investment adviser in Connecticut on November 4, 2008. Also on November 4, 2008, Robert Keith Strauss became registered as an investment adviser agent of the firm.
Dated: Wednesday, November 12, 2008
Howard F. Pitkin