DOB: News Bulletin 2395 - January 15, 2010

 
The Department of Banking News Bulletin 

Bulletin # 2395
Week Ending January 15, 2010

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
01/25/10
Newtown Savings Bank
Newtown
477 Main Street
Monroe, CT 06468
opening
date

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Former Broker-dealer Agent Fined $200,000 in Connection With
Unregistered Promissory Note Sales,
Unregistered Investment Advisory Activity
 
On January 15, 2010, the Banking Commissioner entered an Order Imposing Fine with respect to Daniel Charles Allegrini, a former broker-dealer agent of Wachovia Securities, LLC.
 
The Order Imposing Fine had been preceded by an August 19, 2009 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that:  1) from at least November 2002 to February 2004, the respondent violated Section 36b-6(c) of the Connecticut Uniform Securities Act by transacting business as an investment adviser while unregistered; 2) in 2003, the respondent violated Section 36b-16 of the Act by selling approximately $17,700 in unregistered promissory notes to one or more Connecticut investors; 3) the respondent violated the antifraud provisions in Section 36b-4(a) of the Act by failing to disclose, in connection with the promissory note sales, any risk factors associated with the investment, financial information concerning the respondent or the fact that the respondent had filed for bankruptcy; and 4) in effecting promissory note sales outside the scope of his employment with Wachovia Securities, LLC, the respondent violated Section 36b-31-6(e) of the Regulations under the Act by engaging in private securities transactions absent prior written notice to his employing firm.   Since the respondent had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist had become permanent on September 11, 2009.
 
Although the respondent received the Notice of Intent to Fine, he did not request a hearing on the allegations contained therein, and he did not appear at the fine hearing that was held on September 24, 2009.  Section 36a-1-31(b) of the Regulations of Connecticut State Agencies provides that where a party fails to appear at a scheduled hearing, the allegations against that party may be deemed admitted.
 
In fining the respondent $200,000, the Commissioner found that the respondent had violated Sections 36b-6(c), 36b-16 and 36b-4(a) of the Act as well as Section 36b-31-6(e) of the Regulations.
 
CONSUMER CREDIT DIVISION ACTIVITY
Notice of Intent to Revoke Mortgage Loan Originator License
 
On December 30, 2009, the Commissioner issued a Notice of Intent to Revoke Mortgage Loan Originator License and Notice of Right to Hearing (“Notice”) in the Matter of:  Daniel Charles Allegrini (“Respondent”).  The Notice alleged that Respondent failed to promptly file with the Nationwide Mortgage Licensing System or otherwise directly notify the Commissioner, in writing, of administrative actions taken against Respondent and that such failure constitutes a violation of Section 36a-490(d) of the Connecticut General Statutes, as amended by Public Act 09-209.  The Notice further alleged that the administrative actions taken against Respondent and, more specifically, the findings made therein that Respondent’s conduct constituted violations of the Connecticut Uniform Securities Act, fail to demonstrate that Respondent has the character and general fitness so as to command the confidence of the community and to warrant a determination that Respondent will operate honestly, fairly and efficiently within the purpose of Sections 36a 485 to 36a-498c, inclusive, as amended by Public Act 09-209, Sections 36a 534a and 534b, as amended by Public Act 09-209, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209.  Such failure and violation constitute sufficient grounds to revoke Respondent’s mortgage loan originator license pursuant to Section 36a-494(a)(2) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.  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.
 

Settlement Agreements
 
On December 31, 2009, the Commissioner entered into a Settlement Agreement with Cornerstone Capital Mortgage & Real Estate Services, Inc. (“Cornerstone Capital”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleges that Cornerstone Capital employed or retained, during the period of February 2006 through February 2008, three (3) individuals as originators without registering them, in violation of Sections 36a-486(b) and 36a-511 of the then applicable Connecticut General Statutes.  Cornerstone Capital agreed to make a voluntary contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $3,000 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 January 7, 2010, the Commissioner entered into a Settlement Agreement with Allied Home Mortgage Capital Corporation (“Allied Home Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Allied Home Mortgage employed or retained, during the period of February 2006 through December 2008, fifty-three (53) 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.  Allied Home Mortgage agreed to make a voluntarily contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $50,000 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 January 7, 2010, the Commissioner entered into a Settlement Agreement with Rodeo Enterprises, LLC (“Rodeo Enterprises”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that during the period of March 2009 through September 8, 2009, Rodeo Enterprises engaged in the business of a cashing checks and money orders without having obtained the required license to operate a general facility or a limited facility, in violation of Section 36a-581(a) of the Connecticut General Statutes.  As part of the Settlement Agreement, Rodeo Enterprises will pay a civil penalty in the amount of $6,000, and agreed to not engage in the business of cashing checks, drafts or money orders for consideration without obtaining a license to operate a check cashing general facility or limited facility for each location where such business is to be conducted.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
 
       Dated:  Wednesday, January 20, 2010
 
       Howard F. Pitkin
       Banking Commissioner