DOB: News Bulletin 2402 - March 5, 2010

 
The Department of Banking News Bulletin 

Bulletin # 2402
Week Ending March 5, 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.


 
STATE BANK ACTIVITY
Branch 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
03/01/10
Union Savings Bank
Danbury
274 South Main Street
Newtown, CT  06470
opening
date
03/03/10
 
 
Farmington Bank
Farmington
 
Route 372
129 New Britain Avenue
Plainville, CT  06062
filed
 
 

Name Change
 
On March 5, 2010, pursuant to Section 36a-70(k)(2) of the 2010 Supplement to the General Statutes of Connecticut, First Community Bank of New Haven (In Organization), a de novo bank in organization to be headquartered in New Haven, Connecticut, received approval to change its name to Start Community Bank.
 
CREDIT UNION ACTIVITY
Merger
 
On March 3, 2010, pursuant to Section 36a-468a of the Connecticut General Statutes, Connex Credit Union, Inc., North Haven, Connecticut, a Connecticut credit union, was granted approval 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
Permanent Injunction

On January 4, 2010, the Superior Court for the Judicial District of Hartford entered a Judgment in Accordance With Stipulation in the matter of Pitkin v. Chad A. Verdi.
 
The Motion for Judgment in Accordance With Stipulation filed by the Banking Commissioner had claimed that Chad A. Verdi 1) violated Section 36b-6(a) of the Connecticut Uniform Securities Act by transacting business as an unregistered agent of Markland Technologies, Inc.; and 2) violated Section 36b-23 of the Act by making statements during an investigatory deposition that were materially false or misleading.
 
Without admitting or denying the Commissioner’s allegations, Chad A. Verdi stipulated and agreed to the entry of 1) a permanent injunction enjoining him from violating the Connecticut Uniform Securities Act and its regulations; and 2) a ten year bar from acting as a broker-dealer, agent, investment adviser or investment adviser agent in Connecticut.  In addition, Verdi agreed to pay a $40,000 fine to the department.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On February 23, 2010, the Commissioner entered into a Settlement Agreement with Mortgage Master, Inc. (“Mortgage Master”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Mortgage Master, during the period of January 2007 through April 2009, engaged in the business of a mortgage correspondent lender in Connecticut without obtaining the required licensure for twenty (20) locations or branch offices where such business was conducted, in violation of Section 36a-486(a) and 36a-511(a) of the then applicable Connecticut General Statutes, and employed or retained seventy-one (71) 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.  As part of the Settlement Agreement, Mortgage Master agreed to pay $221,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On February 24, 2010, the Commissioner entered into a Settlement Agreement with Palomar Bancorp, Inc. (“Palomar Bancorp’’).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in 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 issued against Palomar Bancorp on December 22, 2009, that Palomar Bancorp failed to maintain a surety bond that ran concurrent with the period its license to act as a mortgage broker in Connecticut from 1947 Camino Vida Roble, Suite 215, Carlsbad, California, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Acts 09-208 and 09-209.  As part of the Settlement Agreement, Palomar Bancorp agreed to cease acting as a mortgage broker in Conneticut from 1947 Camino Vida Roble, Suite 215, Carlsbad, California.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On February 26, 2010, the Commissioner entered into a Settlement Agreement with EZ Mortgage, LLC (“EZ Mortgage’’).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in a Notice of Automatic Suspension, Temporary Order to Cease and Desist, 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 issued against EZ Mortgage on December 22, 2009, that EZ Mortgage failed to maintain a surety bond that ran concurrent with the period of its license to act as a mortgage broker in Connecticut from 240 Butler Street, Hamden, Connecticut, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Acts 09-208 and 09-209.  As part of the Settlement Agreement, EZ Mortgage agreed to cease acting as a mortgage broker in Connecticut from 240 Butler Street, Hamden, Connecticut.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
Order Revoking Mortgage Broker License and Order to Cease and Desist
 
On February 24, 2010, the Commissioner issued an Order Revoking Mortgage Broker License and Order to Cease and Desist (“Order”) in the Matter of:  First Universal Network Inc. (“Respondent”).  The Order revokes Respondent’s mortgage broker license at 127 Route 59, Monsey, New York, and was based on Respondent’s failure to maintain a surety bond in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Acts 09-208 and 09-209.  A copy of the Order can be obtained from the Department’s website.
 
       Dated:  Tuesday, March 9, 2010
 
       Howard F. Pitkin
       Banking Commissioner