The Department of Banking News Bulletin
Bulletin # 2403
Week Ending March 12, 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
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.
The Bank of new Canaan
612 Bedford Street
Stamford, CT 06901
notice of intent
not to disapprove
New Bank Application Amended
The application to organize Sachem Bank, Madison, Connecticut, pursuant to Section 36a-70 of the Connecticut General Statutes, has been amended to add Clyde A. Burkhardt as an organizer of Sachem Bank (In Organization). Additional organizers were previously identified in Bulletin #2356, dated April 21, 2009, Bulletin #2358, dated May 5, 2009, Bulletin #2391, dated December 22, 2009, and Bulletin #2397, dated February 2, 2010.
CONSUMER CREDIT DIVISION ACTIVITY
On March 2, 2010, the Commissioner issued a Consent Order against Fairfield Financial Mortgage Group, Inc.
(“Fairfield Financial”). The Consent Order was based upon an investigation by the Consumer Credit Division. As a result of the investigation, on October 20, 2008, the Commissioner issued a Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Fairfield Financial. The Notice alleged that Fairfield Financial: (1) Failed to comply with a Settlement Agreement that Fairfield Financial had entered into with the Commissioner on June 5, 2007; (2) made a material misstatement concerning litigation in its license renewal application dated August 24, 2006 (“Renewal Application”) in violation of Section 36a-53a of the Connecticut General Statutes; (3) failed to notify the Commissioner of eight lawsuits against Fairfield Financial subsequent to the filing of the Renewal Application in violation of Section 36a 490(b) of the 2008 Supplement to the General Statutes prior to July 1, 2008; and (4) failed to pay the cost of an examination conducted by the Division in violation of Section 36a-65(c)(6) of the Connecticut General Statutes. As part of the Consent Order, the Commissioner imposed the following sanctions on Charles L. Levesque, President of Fairfield Financial: (1) Mr. Levesque is barred for four years from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a 485 to 36a 534c, inclusive, of the Connecticut General Statutes, and from any position that would require licensure pursuant to Part I of Chapter 668 of the Connecticut General Statutes; (2) Mr. Levesque shall do 100 hours of community service as a volunteer for a 501(c)(3) organization, which organization shall not be involved in rendering consumer credit related services; and (3) for a period of three years and eight months, Mr. Levesque shall file with the Commissioner sworn affidavits on a quarterly basis in which Mr. Levesque states whether he is complying with the terms of the Consent Order. A copy of the Consent Order can be obtained from the Department’s website
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order Imposing Fine Issued
On March 5, 2010, following a hearing, the Banking Commissioner entered an Order Imposing Fine against Cuppy’s Coffee & More, Inc. of 348 Miracle Strip Parkway SW, Building C, Suite 10, Fort Walton Beach, Florida and Elite Manufacturing, LLC of 548 Mary Esther Cutoff SW, Suite 334, Fort Walton Beach, Florida. Elite Manufacturing, LLC also maintains an address at 348 Miracle Strip Parkway, Suite 34, Fort Walton Beach, Florida. The respondents were involved in the sale of coffee franchises. Cuppy’s Coffee & More, Inc. had been the subject of a November 10, 2009 Stop Order issued by the Commissioner under the Connecticut Business Opportunity Investment Act. Both Cuppy’s Coffee & More, Inc. and Elite Manufacturing, LLC were also named in a September 8, 2009 Order to Cease and Desist and Notice of Intent to Fine issued by the Commissioner. The Order to Cease and Desist, being uncontested, had become permanent as to each respondent in October 2009.
The Order to Cease and Desist and Notice of Intent to Fine had alleged that in a business opportunity registration application filed with the department in 2008 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 Order to Cease and Desist and Notice of Intent to Fine had alleged that Cuppy’s Coffee & More, Inc. and Elite Manufacturing, LLC 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.
In fining Cuppy’s Coffee & More, Inc. $45,000 and Elite Manufacturing, LLC $15,000, the Commissioner adopted as findings the violations alleged in the earlier Notice of Intent to Fine. Neither Cuppy’s Coffee & More, Inc. nor Elite Manufacturing, LLC appeared or contested the imposition of the fine.
Stipulation and Agreement
On March 10, 2010, the Banking Commissioner entered into a Stipulation and Agreement with respect to Alexander Capital, L.P., a broker-dealer located at 445 Broadhollow Road, Suite 42, Melville, New York. The Stipulation and Agreement alleged that, due to a failure to effect a renewal of its Connecticut broker-dealer registration within the processing time frame built into the Central Registration Depository System, the firm transacted business as a broker-dealer in 2009 while unregistered in contravention of Section 36b-6(a) of the Connecticut Uniform Securities Act. The firm is currently registered as a broker-dealer in Connecticut. Pursuant to the Stipulation and Agreement, Alexander Capital, L.P. agreed to 1) refrain from regulatory violations; 2) implement revised supervisory and compliance procedures; 3) provide the department with proof that it had refunded to its Connecticut customers the net commission amount retained by the firm and earned during the period of the firm’s alleged unregistered activity; and 4) pay $1,500 to the agency. Of that amount, $1,000 constituted an administrative fine and $500 would be applied to defray the Division’s investigative costs.
Dated: Tuesday, March 16, 2010
Howard F. Pitkin