The Department of Banking News Bulletin
Bulletin # 2373
Week Ending August 14, 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.
AMENDED ACQUISITION STATEMENT
On August 14, 2009, the acquisition statement filed on August 7, 2009, by Alcar LLC, pursuant to Section 36a-184 of the Connecticut General Statutes, was amended to indicate that Gary Lieberman, Robert Hirt, Sean McGould and Nicholas Lewin each propose to acquire 16.67% of the membership interests in Alcar LLC and indirectly more than 10% of beneficial ownership of the voting securities of Darien Rowayton Bank.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Department to Host Securities Forum 2009: Financial Services Reform –
What It Means to You
The State of Connecticut Department of Banking is hosting Securities Forum 2009: Financial Services Reform – What It Means to You
on Tuesday, October 20, 2009 at the New Haven Lawn Club in New Haven, Connecticut. The abbreviated program (based upon cost considerations) runs from 12:00 p.m. to 4:00 p.m.
The keynote speaker will be Dr. Gary B. Gorton, Frederick Frank Class of 1954 Professor of Management and Finance at the Yale University School of Management.
The program will highlight the Obama Administration’s reform plan and what it affects – risk management, traditional regulators, hedge funds, advisers, mandatory arbitration, derivatives – and more. In addition, the program will include special segments on regulatory updates of interest to investment advisers and broker-dealers. The registration fee (which includes luncheon) is $70 per person, discounted to $60 per person for multiple attendees from the same firm.
Don't miss out on this unique opportunity to hear about financial developments from the regulators themselves and to compare notes with other financial services industry professionals. You can download a registration form and read the preliminary agenda
on the Department's website.
We hope you can join your industry colleagues at this timely event.
On July 31, 2009, the Banking Commissioner entered a Consent Order 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 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.
On August 7, 2009, the Banking Commissioner entered a Consent Order with respect to Nelson Noren Ehinger, Jr., a registered broker-dealer agent and a registered investment adviser agent of Infinex Investments, Inc. The Consent Order alleged that, while associated with Infinex Investments, Inc., Nelson Ehinger, Jr. engaged in dishonest or unethical practices in the securities business by 1) executing unauthorized transactions on behalf of a customer; and 2) creating and submitting to his employing firm a false and misleading document relating to the authorized nature of customer securities transactions. The Consent Order also alleged that, in connection with an agency investigation, Nelson Ehinger, Jr. violated Section 36b-23 of the Connecticut Uniform Securities Act by making materially false or misleading oral statements. The Consent Order suspended the broker-dealer agent and investment adviser agent registrations of Nelson Ehinger, Jr. for thirty consecutive days, commencing on August 7, 2009. In addition, the Consent Order directed Nelson Ehinger, Jr. to cease and desist from regulatory violations and to pay $12,500 to the department. Of that amount, $10,000 constituted an administrative fine and $2,500 would be applied to defray the Division’s investigative costs.
CONSUMER CREDIT DIVISION ACTIVITY
Temporary Order to Cease and Desist, Notice of Intent to Revoke
Mortgage Lender Licenses, Notice of Intent to Issue Order
to Cease and Desist and Notice of Intent to Impose Civil Penalty
On August 10, 2009, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of: Taylor, Bean & Whitaker Mortgage Corp.
(“Respondent”). The Notice alleged that Respondent failed to perform agreements with borrowers by failing to fund at least 15 residential mortgage loans and failed to timely pay the loan proceeds for at least 110 residential mortgage loans in violation of Section 36a-758 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