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 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.
Farmington Savings Bank
FROM: 296 Country Club Road
Avon, CT 06001
TO: 427 West Avon Road
Avon, CT 06001
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.
Notice of Intent to Issue Stop Order Denying Effectiveness
to a Business Opportunity Registration Issued;
Order to Cease and Desist and Notice of Intent to Fine Issued
On September 8, 2009, the Banking Commissioner issued a Notice of Intent to Issue Stop Order denying effectiveness to the business opportunity registration of Cuppy’s Coffee & More, Inc. In the same action, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Cuppy’s Coffee & More, Inc. and its agent and affiliate Elite Manufacturing, LLC. Cuppy’s Coffee & More, Inc., a Texas corporation, maintains its principal place of business at 348 Miracle Strip Parkway SW, Building C, Suite 10, Fort Walton Beach, Florida. Elite Manufacturing, LLC, a Florida limited liability company, maintains its principal office at 348 Miracle Strip Parkway, Suite 34, Fort Walton Beach, Florida.
Cuppy’s Coffee & More, Inc. had previously registered its business opportunity under the Connecticut Business Opportunity Investment Act. However, that registration terminated on April 30, 2007 when the registration was not renewed. Cuppy’s Coffee & More, Inc. reapplied for Connecticut business opportunity registration on March 5, 2008.
The action alleged that, in its 2008 business opportunity registration application and in a General Affidavit filed with the agency, Cuppy’s Coffee & More, Inc. made materially false or misleading statements concerning prior business opportunity offers and sales in Connecticut. In addition, the action alleged that Cuppy’s Coffee & More, Inc. and Elite Manufacturing, LLC violated Section 36b-67 of the Connecticut Business Opportunity Investment Act by selling or offering unregistered business opportunities to at least one Connecticut purchaser-investor.
Cuppy’s Coffee & More, Inc. was afforded an opportunity to request a hearing on the Notice of Intent to Issue Stop Order. Both respondents were 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 November 19, 2009.
Stipulation and Agreement
On September 9, 2009, the Banking Commissioner entered into a Stipulation and Agreement with Sands Brothers Asset Management LLC, an investment adviser registered with the Securities and Exchange Commission. The firm currently maintains its principal office at 15 Valley Drive, Greenwich, Connecticut.
The firm had been the subject of a May 18, 2007 Order to Cease and Desist and Notice of Intent to Fine alleging that the firm and others had been signatories to a November 29, 2004 Consent Order Conditioning Registration as an Investment Adviser Agent and Restricting Securities-Related Activities involving Martin Scott Sands. Martin Sands was and remains an investment adviser agent of Sands Brothers Asset Management LLC. The 2004 Consent Order had obligated Sands Brothers Asset Management LLC to file periodic reports with the agency concerning disciplinary matters involving Martin Scott Sands. The 2007 Order to Cease and Desist and Notice of Intent to Fine claimed that Sands Brothers Asset Management LLC violated the 2004 Consent Order as well as Section 36b-23 of the Connecticut Uniform Securities Act by filing incomplete or inaccurate reports with the department.
The September 9, 2009 Stipulation and Agreement resolved the allegations in the 2007 Order to Cease and Desist and Notice of Intent to Fine.
Pursuant to the Stipulation and Agreement, Sands Brothers Asset Management LLC agreed to cease and desist from regulatory violations; retain an independent consultant to review its supervisory and compliance procedures; and provide periodic reports to the department, including reports regarding securities-related complaints, actions and proceedings. In addition, the firm agreed to remit $42,500 to the agency. Of that amount, $32,500 constituted an administrative fine and $10,000 would be applied to reimburse the department for its investigative costs.
Dated: Tuesday, September 15, 2009
Howard F. Pitkin