DOB: News Bulletin 2386 - November 13, 2009

The Department of Banking News Bulletin 

Bulletin # 2386
Week Ending November 13, 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
11/10/09
Torrington Savings Bank
Torrington
FROM: 59 Torrington Rd, Route 4
          Goshen, CT  06756
TO:     55 Sharon Tnpk, Route 4
          Goshen, CT  06756
filed to
relocate

ACQUISITION
 
On November 13, 2009, approval was granted pursuant to Section 36a-210(b) of the Connecticut General Statutes for Salisbury Bank and Trust Company, a Connecticut bank, to acquire all or a significant part of the assets or business of Webster Bank, National Association’s branch office located at 10 Granite Avenue, North Canaan, Connecticut.  Webster Bank, National Association is a national banking association with its principal office in Waterbury, Connecticut.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
2007 Consent Order Modified
 
On November 9, 2009, the Banking Commissioner entered an Order modifying an April 26, 2007 Consent Order issued with respect to L & L Financial Holdings, Inc. n/k/a L & L International Holdings, Inc.  L & L International Holdings, Inc. is currently located at 130 Andover Park East, Suite 101, Seattle, Washington.  The 2007 Consent Order had alleged that L & L Financial Holdings, Inc. employed one Stephen Patrick Johnston as an unregistered agent of issuer, and that the stock sold by Johnston was not registered under the Connecticut Uniform Securities Act.   Among other things, the 2007 Consent Order had barred the issuer for ten years from selling securities in or from Connecticut notwithstanding any claim of exemption or covered securities status that it could otherwise assert.
 
The modifying Order removed the existing sales bar effective November 9, 2009, and imposed an additional requirement mandating that, for three years, the issuer, its affiliates and successors in interest retain and consult with experienced Connecticut securities legal counsel prior to engaging in any securities-related activities in or from the state.  The modifying Order also required that, for three years, the issuer, its affiliates and successors in interest only offer or sell securities in or from Connecticut through broker-dealers or broker-dealer agents who were then registered under the Connecticut Uniform Securities Act and whose identities were supplied in writing to the department prior to the offers or sales in question.  Aside from prospectively removing the existing sales bar, the modifying Order did not alter any other provisions in the 2007 Consent Order.
 
Stop Order Entered Denying Business Opportunity Registration
 
On November 10, 2009, the Banking Commissioner entered a Stop Order denying effectiveness to the pending business opportunity registration of Cuppy’s Coffee & More, Inc. of 348 Miracle Strip Parkway SW, Building C, Suite 10, Fort Walton Beach, Florida.  The Stop Order had been preceded by a September 8, 2009 Notice of Intent to Issue a Stop Order Denying Effectiveness to a Business Opportunity Registration, Order to Cease and Desist and Notice of Intent to Fine against the respondent.
 
Although Cuppy’s Coffee & More, Inc. had previously registered its business opportunity under the Connecticut Business Opportunity Investment Act, that registration had 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 September 8, 2009 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. 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. did not request a hearing on the imposition of the Stop Order.  Similarly, since the respondent had not requested a hearing on the earlier Order to Cease and Desist, the Order to Cease and Desist had become permanent on October 14, 2009.

CONSUMER CREDIT DIVISION ACTIVITY
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke Mortgage Lender License and
Notice of Intent to Issue Order to Cease and Desist
 
On October 27, 2009, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, 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:  Taylor, Bean & Whitaker Mortgage Corp. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 560 South Line Road, Lecanto, Florida, in violation of Section 36a 492 of the Connecticut General Statutes, as amended by Public Acts 09-208 and 09-209.  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 and
Notice of Intent to Issue Order to Cease and Desist
 
On November 3, 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:  Newtown Mortgage Corporation (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 13532 Old Statesville Road, Huntersville, North Carolina, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209.  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.
 
Temporary Order to Cease and Desist, Order of Summary Suspension,
Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License,
Notice of Intent to Issue Order to Cease and Desist
 
On November 3, 2009, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Civic Mortgage Group, Inc. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 128 Dorrance Street, Suite 550, Providence, Rhode Island, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09 209.  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.
 
Order to Cease and Desist, Order Imposing Civil Penalty
 
On November 2, 2009, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Worldwide Financial Resources, Inc. (“Respondent”).  The basis of the Order was that Respondent closed eleven (11) mortgage loans or residential mortgage loans without the required licensure in violation of Section 36a-486(a) of the Connecticut General Statutes (“General Statutes”) and Section 36a-486(a) of the General Statutes, as amended by Public Act 09-209, and that Respondent failed to timely pay the loan proceeds for at least nine (9) first mortgage loans in violation of Section 36a-758 of the General Statutes.  Respondent was ordered to cease and desist from violating Section 36a-486(a) of the General Statutes, Section 36a-486(a) of the General Statutes, as amended, and Section 36a-758 of the General Statutes, and to pay a civil penalty in the amount of $110,000.  A copy of the Order can be obtained from the Department’s website.
 
Orders Revoking Mortgage Broker Licenses and
Orders to Cease and Desist
 
On October 28, 2009, the Commissioner issued an Order Revoking Mortgage Broker License and Order to Cease and Desist (“Order”) in the Matter of:  America’s Lending Solutions, Ltd. d/b/a Connecticut Lending Solutions, LLC (“Respondent”).  The Order revokes Respondent’s license to act as a mortgage broker in Connecticut from 5700 Lombardo Center Drive, Suite 101, Seven Hills, Ohio, and orders Respondent to cease and desist from violating Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209, based on Respondent’s failure to maintain a surety bond in violation of Section 36a-492 of the Connecticut General Statutes, as amended.  A copy of the Order can be obtained from the Department’s website.
 
On October 28, 2009, the Commissioner issued an Order Revoking Mortgage Broker License and Order to Cease and Desist (“Order”) in the Matter of:  Set 2 Go Loans, Inc. (“Respondent”).  The Order revokes Respondent’s license to act as a mortgage broker in Connecticut from 2082 SE Bristol Street, Suite 218, Newport Beach, California, and orders Respondent to cease and desist from violating Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209, based on Respondent’s failure to maintain a surety bond in violation of Section 36a-492 of the Connecticut General Statutes, as amended.  A copy of the Order can be obtained from the Department’s website.
 
Order Revoking Mortgage Lender License and
Order to Cease and Desist
 
On October 29, 2009, the Commissioner issued an Order Revoking Mortgage Lender License and Order to Cease and Desist (“Order”) in the Matter of:  Access Mortgage Corporation d//b/a Keystone Bankers Mortgage Company (“Respondent”).  The Order revokes Respondent’s license to engage in the business of a mortgage lender from One Church Street, New Haven, Connecticut, and orders Respondent to cease and desist from violating Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209, based on Respondent’s failure to maintain a surety bond in violation of Section 36a-492 of the Connecticut General Statutes, as amended.  A copy of the Order can be obtained from the Department’s website.
 
Order Revoking Consumer Collection Agency License
and Order to Cease and Desist
 
On October 28, 2009, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  National Financial Systems, Inc. (“Respondent”).  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from 1400 Northpoint Parkway, Suite 20, West Palm Beach, Florida, and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes, 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.
 
Settlement Agreements
 
On October 22, 2009, the Commissioner entered into a Settlement Agreement with Trademark Financial Group, LLC (“Trademark Financial”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Trademark Financial employed or retained, during the period of May 2007 through April 2009, two (2) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  Trademark Financial 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 $2,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On October 28, 2009, the Commissioner entered into a Settlement Agreement with The McCue Mortgage Company (“McCue Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that McCue Mortgage employed or retained, during the period of April 2007 through March 2008, two (2) individuals as originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  McCue Mortgage 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 $2,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
 
 
       Dated:  Tuesday, November 17, 2009
 
       Howard F. Pitkin
       Banking Commissioner