DOB: News Bulletin 2383 - October 23, 2009

The Department of Banking News Bulletin 

Bulletin # 2383
Week Ending October 23, 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.


Please contact your financial institution directly to determine whether or not it will open for business on a state holiday.  Legal holidays to be observed by the State of Connecticut in the year 2010 are:
Legal Holiday  
 Day Observed 
 Legal Holiday 
 Day Observed
New Yearís Day 
Fri., Jan. 1, 2010  
Independence Day  
Mon., July 5, 2010 
Martin Luther King's Day 
Mon., Jan. 18, 2010
Labor Day
Mon., Sept. 6, 2010
Lincoln's Birthday  Fri., Feb. 12, 2010  Columbus Day  Mon., Oct. 11, 2010
Washington's Birthday  Mon., Feb. 15, 2010  Veterans' Day  Thurs., Nov. 11, 2010
Good Friday * Fri., April 2, 2010  Thanksgiving Day **  Thurs., Nov. 25, 2010
Memorial Day  Mon., May 31, 2010 Christmas Day Fri., Dec. 24, 2010
* The day which will be designated by the Governor as a day of Fasting and Prayer.
** The day which will be designated by the Governor as a day of Thanksgiving.
The first Holiday for 2011, New Yearís Day, will fall on the last day of 2010.  This Holiday will be observed on Friday, December 31, 2010.
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
UPS Capital Business Credit
*Carrera 9 #74-08 (705)
  Bogota, D.C., Columbia
  South America
Farmington Savings Bank
  669 Hebron Avenue
  Glastonbury, CT  06033
*Limited Branch

Stipulation and Agreement
On October 15, 2009, the Banking Commissioner entered into a Stipulation and Agreement with Tix Corporation, an issuer of securities located at 12001 Ventura Place, Studio City, California, and Alan R. Davidson, of 36 Candlewyck Drive, Henderson, Nevada.  Davidson is the manager of ARD Partners, LLC, a Florida limited liability company.  The Stipulation and Agreement alleged, in conjunction with a prior private placement, Tix Corporation had paid a 12% finderís fee to ARD Partners, LLC, on behalf of Davidson; and that Davidson was not registered as either an agent of issuer or as a broker-dealer under the Connecticut Uniform Securities Act.  Pursuant to the Stipulation and Agreement, Tix Corporation agreed to refrain from engaging an unregistered broker-dealer or an unregistered agent of issuer in connection with future securities sales and to pay a $1,500 fine.  Davidson agreed to refrain from transacting business as an agent or a broker-dealer absent registration and to remit $1,500 to the department as a fine.
Order to Cease and Desist, Notice of Intent to Revoke Registration
as Broker-dealer and Notice of Intent to Fine Issued
On October 20, 2009, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer, Notice of Intent to Fine and Notice of Right to Hearing against Southridge Investment Group, a Connecticut-registered broker-dealer located at 90 Grove Street, 2nd Floor, Ridgefield, Connecticut.   The firm, whose president is Michael Byl, is beneficially owned by Stephen Murray Hicks.  Hicks also maintains a beneficial ownership interest in Southridge Capital Management LLC and Southridge Asset Management LLC.
The action alleged that, in 2005, the respondent firm violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered, nonexempt common stock issued by Markland Technologies, Inc.  The action also alleged that, in contravention of Section 36b-31-6f of the Regulations under the Act, the respondent failed to maintain and enforce adequate supervisory procedures relating to Hicksí supervisory role; the protection of material, non-public information; the preservation of electronic communications and other business records; and the processing of fingerprint data.  In addition, the action alleged that 1) the firm engaged in dishonest and unethical business practices by allowing Hicks to operate as an unregistered principal; and by failing to maintain business electronic communications as required by the firmís Supervisory Manual as well as by failing to follow procedures governing the processing of fingerprints; 2) the firm failed to maintain the books and records required by Section 36b-14 of the Act; 3) the firm wilfully violated Section 36b-14 of the Act by failing to provide copies or computer printouts of records when requested by the department; and 4) the firm violated Section 36b-31-15e of the Regulations by allowing Hicks to act as a manager when he had not passed the appropriate principalís examination.  Finally, the action alleged that the respondent violated Section 36b-23 of the Act by filing Form U-4 amendments that were materially false or misleading.
The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine.  If requested, the hearing will be held on December 8, 2009.

       Dated:  Tuesday, October 27, 2009
       Howard F. Pitkin
       Banking Commissioner