DOB: News Bulletin 2353 - March 27, 2009

 
The Department of Banking News Bulletin 

Bulletin # 2353
Week Ending March 27, 2009

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.


 
NEW BANK ACTIVITY
 
On April 13, 2009, at 9:00 a.m., pursuant to Section 36a-70 of the Connecticut General Statutes, a hearing of the Banking Commissioner, State Treasurer, and State Comptroller, or their designee, will be held at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, on the application of John DeStefano, Jr., William Placke, and Robert Solomon to organize First Community Bank of New Haven, New Haven, for the purpose of doing business as a Connecticut bank.
 

CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreement
 
On March 24, 2009, the Commissioner entered into a Settlement Agreement with Capital Mortgage Associates, LLC (“CMA”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that CMA employed or retained, during the period of May 4, 2006 through April 9, 2008, at least seven loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes.  CMA agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $7000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed 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
Business Opportunity Registration Applicant
Fined $25,000 for Prior Unregistered Sales
 
On March 23, 2009, the Commissioner entered a Consent Order with respect to Press-A-Print International LLC of 1463 Commerce Way, Idaho Falls, Idaho.  The entity had filed for registration under the Connecticut Business Opportunity Investment Act.   The Consent Order alleged that 1) from 2000 forward, the company sold at least five unregistered business opportunities in Connecticut in contravention of Sections 36b-65(a) and 36b-67(1) of the Act; 2) the disclosure document filed by the company in connection with its business opportunity registration application contained deficiencies, including a failure to disclose the Commissioner’s January 29, 1996 Order to Cease and Desist and Notice of Right to Hearing (Docket No. CD-95-160-B) against the firm’s predecessor, Press-A-Print, Inc.;  3) the disclosure document was inconsistent with the seller’s promotional materials with respect to financing offered, the use of public figures to promote the business opportunity and the extent of training support; and 4) in violation of Section 36b-80 of the Act, the company filed with the Commissioner a document representing that purchaser-investors had a license to use the company’s registered trademark when that was not the case.
 
The Consent Order directed Press-A-Print International LLC to cease and desist from regulatory violations and to pay a $25,000 fine.  In addition, the Consent Order required that the company 1) consult with legal counsel periodically for three years regarding compliance with Connecticut’s business opportunity law; 2) notify those Connecticut residents who purchased a business opportunity from 2006 forward of their rights and remedies under the Connecticut Business Opportunity Investment Act and supply them with a copy of the Consent Order; 3) notify the Division Director for three years of any change in the seller’s executive officers, control persons or affiliated entities; 4) include a description of the March 23, 2009 Consent Order in the disclosure document; and 5) for three years, advise the department in writing each quarter of any complaints, actions or proceedings involving Connecticut residents.
 
 
       Dated:  Tuesday, March 31, 2009
 
       Howard F. Pitkin
       Banking Commissioner