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.
Naugatuck Savings Bank
FROM: 100 Hanover Street
Meriden, CT 06451
TO: 500 West Main Street
Meriden, CT 06451
227 Trumbull Street
Hartford, CT 06103
CREDIT UNION ACTIVITY
On November 30, 2009, pursuant to Section 36a-468a of the Connecticut General Statutes, Victory/Piaterer Mutual Benefit Association, East Hartford, American Mutual Credit Union, Inc., Bloomfield, and Jordan Mutual Benefit Association, Bloomfield, all Connecticut credit unions, filed an application for the merger of American Mutual Credit Union, Inc. and Jordan Mutual Benefit Association with and into Victory/Piaterer Mutual Benefit Association.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Commonwealth Exploration Corporation Fined $900,000
On December 3, 2009, the Banking Commissioner entered Findings of Fact and Conclusions of Law resolving certain allegations contained in a June 30, 2009 Notice of Intent to Fine issued against Commonwealth Exploration Corporation of 2002 Summit Boulevard, Suite 1225, Atlanta, Georgia, and Carlos E. Conde of 1231 Adams Street, Franklin, Tennessee. The parties had also been the subject of a June 30, 2009 Order to Cease and Desist, which, being uncontested, had become permanent as to Commonwealth Exploration Corporation and Carlos E. Conde on August 7, 2009. The June 30, 2009 Order to Cease and Desist and Notice of Intent to Fine had alleged that, in 2007, respondents Commonwealth Exploration Corporation and Conde sold unregistered interests in Perimeter Summit, LLP, a Georgia limited liability partnership, in violation of Section 36b-16 of the Connecticut Uniform Securities Act. Perimeter Summit, LLP was allegedly formed to acquire oil and gas development projects in Kentucky. The action had also alleged that the respondents violated the antifraud provisions in Section 36b-4 of the Act by disseminating offering documents that failed to disclose 1) financial information about the performance of prior interests in oil and gas rights in which Commonwealth Exploration Corporation was the manager; 2) investment risk factors; 3) that Derek M. Lofton, also named as a respondent, was not registered to sell securities in Connecticut; 4) that the Perimeter Summit, LLP interests were not registered in Connecticut; and 5) that respondent Lofton was subject to a prior Connecticut administrative action alleging that he sold unregistered securities in an unregistered capacity. The action had also alleged that, in violation of Section 36b-6 of the Act, respondents Commonwealth Exploration Corporation and Conde employed respondent Lofton as an unregistered agent of issuer, and that respondent Lofton unlawfully transacted securities business in that capacity.
The matter involving respondent Lofton remains pending.
On August 11, 2009, a hearing was held on the Notice of Intent to Fine involving Commonwealth Exploration Corporation and Carlos E. Conde. Neither Commonwealth Exploration Corporation nor respondent Conde appeared at that hearing. Under Section 36a-1-31(b) of the Regulations of Connecticut State Agencies, a party’s failure to appear at a scheduled hearing may result in the allegations against that party being deemed admitted.
Focusing exclusively on Section 36b-27(d)(1)(B) of the Connecticut Uniform Securities Act, which authorizes the Commissioner to impose a fine against control persons causing a primary violation, the Commissioner determined that the Notice of Intent to Fine did not allege that respondent Conde was a cause of any of the alleged violations due to an act or omission that Conde knew or should have known would contribute to those violations. Consequently, the facts did not require the imposition of a fine against respondent Conde.
The Commissioner found, however, that the record and the absence of mitigating factors required the imposition of a $900,000 fine against respondent Commonwealth Exploration Corporation.