The Department of Banking News Bulletin
Bulletin # 2337
Week Ending December 5, 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.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License 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.
Connecticut River Community
970 Farmington Ave.
West Hartford, CT 06107
Ace Check Cashing
d/b/a Ace's Smoke and
Cell Shop LLC
690-B Albany Avenue
Hartford, CT 06112
United Check Cashing
d/b/a Berik Enterprises, LLC
709 Campbell Avenue
West Haven, CT 06516
Order to Cease and Desist and
Order Imposing Civil Penalty
On December 1, 2008, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: James Rollin Powers
(“Respondent”). The basis of the Order was that the Respondent filed a Renewal Addendum with the Department for the renewal of his loan originator license, which contained a material misstatement regarding his criminal history, in violation of Section 36a-53a of the Connecticut General Statutes (“General Statutes”). Respondent was ordered to cease and desist from violating Section 36a-53a of the General Statutes and to pay a civil penalty in the amount of $100,000. 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
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist from Regulatory Violations;
Notice of Intent to Fine Issued
On December 1, 2008, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Jesse John Hinkley of New Fairfield, Connecticut. The respondent was formerly associated with New Castle Financial Services LLC, a securities brokerage firm. The action alleged that, between November 8, 2006 and July 16, 2007 and in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act, the respondent transacted business as an agent of New Castle Financial Services LLC while unregistered. In addition, the action alleged that the respondent violated the antifraud provisions in Section 36b-4 of the Act by representing to at least one potential investor that the respondent would pay the investor $13,000 in six weeks if the investor paid the respondent $8,500; representing that the respondent’s other clients were achieving a 40% investment return when, in reality, the respondent had no other clients; and failing to disclose any investment risks to potential investors. 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 January 22, 2009.
Rhode Island Firm Fined $100,000
for Employing Unregistered Agent of Issuer
On December 2, 2008, the Commissioner entered an Order Imposing Fine against Markland Technologies, Inc. of 222 Metro Center Boulevard, Warwick, Rhode Island and formerly of 90 Grove Street, Ridgefield, Connecticut. The respondent had been the subject of an August 15, 2008 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that the respondent employed one Chad A. Verdi as an agent at a time when Verdi was not registered as such under the Connecticut Uniform Securities Act. The Order to Cease and Desist, being uncontested, had become permanent on September 23, 2008.
In fining Markland Technologies, Inc. $100,000, the Commissioner found that the respondent violated Section 36b-6(b) of the Connecticut Uniform Securities Act by employing an unregistered agent of issuer. The respondent did not appear or contest the imposition of the fine.
Dated: Tuesday, December 9, 2008
Howard F. Pitkin