DOB: News Bulletin 2371 - July 31, 2009

The Department of Banking News Bulletin 

Bulletin # 2371
Week Ending July 31, 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.


 
BRANCH ACTIVITY
State Bank Activity
 
Section 36a-145 of the Connecticut General Statutes requires certain applications 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
7/27/09
Dime Bank
Norwich
4 Cannon Square 
Stonington, CT 06378
approved
7/31/09
Fairfield County Bank
Ridgefield
20 Compo Road South
Westport, CT 06880
filed
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Orders
 
On July 27, 2009, the Banking Commissioner entered a Consent Order (Docket No. CO-09-7705-S) with respect to Prosper Marketplace, Inc., an issuer of securities located at 111 Sutter Street, 22nd Floor, San Francisco, California.  The company provides an online marketplace for peer to peer lending.  The Consent Order alleged that, between 2006 and October 2008, Prosper Marketplace, Inc. violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities in the form of loan notes.  In addition, the Consent Order alleged that, between 2006 and October 2008, Prosper Marketplace, Inc. failed to provide adequate disclosure concerning investment risk factors and other information in contravention of Section 36b-4 of the Act.  Subsequent to the conduct in question, Prosper Marketplace, Inc. modified its business plan and registered its securities with the Securities and Exchange Commission and under Connecticut’s securities laws.
 
The Consent Order directed Prosper Marketplace, Inc. to cease and desist from regulatory violations and required that it pay $12,602 to the department.  Of that amount, $11,600 constituted an administrative fine and $1,002 would be applied to defray agency investigative costs.
 
Multivend, LLC d/b/a Vendstar (CRD # 47442) Agrees to Extend Rescission Offer to Purchaser-Investors, Pay $5,000 Fine Following Allegations of Unregistered Business Opportunity Sales
 
On July 31, 2009, the Banking Commissioner entered a Consent Order (Docket No. CF-2008-852-B) resolving the allegations in an August 15, 2008 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Multivend, LLC d/b/a Vendstar (CRD # 47442) of 880 Grand Boulevard, Deer Park, New York.  The Order to Cease and Desist and Notice of Intent to Fine had 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 Consent Order fined the respondent $5,000 and mandated that it extend a written rescission offer to affected Connecticut purchaser-investors.  The Consent Order also provided that the Order to Cease and Desist would remain in effect for ten years.
 

CONSUMER CREDIT DIVISION ACTIVITY
Order Revoking Consumer Collection Agency License and Order to Cease and Desist
 
On July 21, 2009, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Receivables Specialist, Inc. (“Respondent”).  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from 7200 West McNab Road, Tamarac, Florida, and was based on Respondent’s failure to maintain a surety bond in violation of Section 36a-802(a) of the Connecticut General Statutes.  A copy of the Order can be obtained from the Department’s website.
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke Consumer Collection Agency License,
Notice of Intent to Issue Order to Cease and Desist
 
On July 21, 2009, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Titan Management Services, LLC (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 3237 Satellite Boulevard, Building 300, Suite 210, Duluth, Georgia, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.  A copy of the Notice can be obtained from the Department’s website.
 
On July 21, 2009, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Admerex Inc. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for Level 14, The Peak Tower, 107 L.P. Leviste St. Salcedo Village, Makati City, Philippines, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.  A copy of the Notice can be obtained from the Department’s website.
 
On July 21, 2009, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Walker Associates, Inc. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for Two Oliver Street, Boston, Massachusetts, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.  A copy of the Notice can be obtained from the Department’s website.
 
On July 21, 2009, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  ARGYLE Solutions, Inc. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 7880 Bent Branch, Suite 150, Irving, Texas, in violation of Section 36a 802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.  A copy of the Notice can be obtained from the Department’s website.
 
Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist
 
On July 21, 2009, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Northernstar Mortgage, Inc. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 391 Norwich Westerly Road, Unit 3D, North Stonington, Connecticut, in violation of Section 36a-492(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist and that public safety and welfare required the issuance of an Order of Summary Suspension of Respondent’s mortgage broker license in Connecticut.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.  A copy of the Notice can be obtained from the Department’s website.
 
 
       Dated:  Tuesday, August 4, 2009
 
       Howard F. Pitkin
       Banking Commissioner