The Department of Banking News Bulletin
Bulletin # 2396
Week Ending January 22, 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.
CREDIT UNION ACTIVITY
On December 19, 2009 pursuant to Section 36a-468a of the Connecticut General Statutes, Connex Credit Union, Inc., North Haven, Connecticut, a Connecticut credit union, filed an application to merge with St. Boniface Federal Credit Union, West Haven, Connecticut, a federally chartered credit union, with Connex Credit Union, Inc. as the resulting credit union.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Rhode Island Man Barred from Conducting
Connecticut Securities Business For Ten Years; Fined $25,000
On January 19, 2010, the Banking Commissioner entered a Consent Order resolving allegations in a July 16, 2009 Order to Cease and Desist and Notice of Intent to Fine against Robert Tarini of 46 Bell Schoolhouse Road, Richmond, Rhode Island. The July 16, 2009 action had alleged that respondent Tarini testified in response to an investigatory subpoena that 1) he was the president of Markland Technologies, Inc., a Rhode Island holding company that held various intellectual property assets related to electro-optic and biometric sensing technologies; and 2) previously, he and one Chad A. Verdi had jointly owned interests in Bay View Capital, LLC, Dyer Avenue Associates, VFM Realty and Syquest. The action had also alleged that, in violation of Section 36b-23 of the Connecticut Uniform Securities Act, respondent Tarini made materially false or misleading oral statements in his subpoenaed testimony with respect to the role played by Chad A. Verdi in soliciting prospective investors for Markland Technologies, Inc. and in negotiating a specific financing transaction between Markland Technologies, Inc. and a Connecticut hedge fund.
Without admitting or denying the allegations, respondent Tarini consented to the imposition of a ten year bar precluding him from transacting business in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent during that period. The January 19, 2010 Consent Order also directed respondent Tarini to cease and desist from regulatory violations and to pay a $25,000 fine to the department.
Notice of Intent to Deny Registration as an Investment Adviser and
as an Investment Adviser Agent Issued; Order to Cease and Desist Issued
On January 21, 2010, the Banking Commissioner issued a Notice of Intent to Deny Registration as an Investment Adviser and as an Investment Adviser Agent, Order to Cease and Desist and Notice of Right to Hearing in the matter of Financial Partners LLC and Douglas Kirk Landeen. Financial Partners LLC is a Connecticut limited liability company with its principal office at 123 Hopmeadow Road, Bristol, Connecticut. Respondent Landeen is the sole direct owner and managing member of Financial Partners LLC. The action alleged that a basis existed to deny Respondent Financial Partners LLC’s investment adviser registration under the Connecticut Uniform Securities Act due to the firm’s failure to fulfill the experience requirements in Section 36b-31-7b of the Regulations under the Act. The action also alleged that, on two separate occasions, Respondent Landeen had filed with the Commissioner a Form U-4 (Uniform Application for Securities Industry Registration or Transfer) that failed to disclose that, on July 27, 1998, Respondent Landeen had been sentenced to 27 months in prison after pleading guilty to violations of 18 U.S.C. 1341 (Mail Fraud) and 26 U.S.C. 7206(1) (Wilful Subscription to False Tax Return), both felonies (U.S. v. Landeen, D. Conn. Case No. 3:98-CR 63 JBA). Respondent Landeen’s failure to disclose his prior criminal history allegedly violated Section 36b-23 of the Act and Section 36b-31-14e of the Regulations, thus constituting a basis for the denial of Respondent Landeen’s investment adviser agent registration and the entry of a cease and desist order against him.
The respondents were afforded an opportunity to request a hearing on the matters alleged in the Notice of Intent to Deny Registration as an Investment Adviser and as an Investment Adviser Agent and the Order to Cease and Desist.
CONSUMER CREDIT DIVISION ACTIVITY
On January 14, 2010, the Commissioner entered into a Settlement Agreement with Right Trac Financial Group, Inc.
(“Right Trac Financial Group”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Right Trac Financial Group employed or retained, during the period of December 2007 through March 2009, four 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. Right Trac Financial Group 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 $4,000 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, January 26, 2010
Howard F. Pitkin