DOB: News Bulletin 2405 - March 26, 2010

The Department of Banking News Bulletin 

Bulletin # 2405
Week Ending March 26, 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
3/26/10
Farmington Bank
Farmington
Route 372
129 Farmington Avenue
Plainville, CT  06062
notice of intent
not to disapprove

Consent Order
 
On February 17, 2010, the Federal Deposit Insurance Corporation (“FDIC”), with the concurrence of the Banking Commissioner, issued a Consent Order against The Community’s Bank.  The order may be viewed on the FDIC’s website.
 
Change of Name
 
In Bulletin 2404 for week ending March 19, 2010, the name change approval for The Chelsea Groton Savings Bank, Norwich, to change its name to Chelsea Groton Bank was erroneously listed as March 16, 2010.  The correct date is March 19, 2010.
 
Acquisition and Merger
 
On March 25, 2010, pursuant to Section 36a-184 of the Connecticut General Statutes, an acquisition statement was filed on behalf of Fairfield County Bank Corp., a federal holding company organizing as a subsidiary holding company of Fairfield County Bank, MHC, a federal mutual holding company, for the indirect acquisition of 100% of the issued and outstanding shares of common stock of Fairfield County Bank, a stock savings Connecticut bank that is a wholly-owned subsidiary of Fairfield County Bank, MHC.  The acquisition will take place through the merger of Fairfield County Bank with Fairfield Interim Bank, a bank organizing under federal law as a wholly-owned subsidiary of Fairfield County Bank Corp., with Fairfield County Bank being the resulting institution.  An application for the merger was filed on March 25, 2010, pursuant to Section 36a-126 of the Connecticut General Statutes, on behalf of Fairfield County Bank and Fairfield Interim Bank
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreement
 
On March 16, 2010, the Commissioner entered into a Settlement Agreement with Advisors Mortgage Group, LLC d/b/a AMG Mortgage (“Advisors Mortgage Group’’).  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 Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued against Advisors Mortgage Group on December 22, 2009, that Advisors Mortgage Group failed to maintain a surety bond that ran concurrent with the period its license to engage in the business of a mortgage lender in Connecticut from 115 Middle Street, Bridgeport, 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, Advisors Mortgage Group agreed to cease engaging in the business of a mortgage lender in Connecticut from 115 Middle Street, Bridgeport, Connecticut.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order

On March 26, 2010, the Banking Commissioner entered a Consent Order with respect to Woodstock Financial Group, Inc., a Connecticut-registered broker-dealer located at 117 Towne Lake Parkway, Suite 200, Woodstock, Georgia.  The Consent Order alleged that the firm had charged certain Connecticut customers inflated transaction fees, categorized as “Misc.” and as a “Ticket Charge.”  Although a portion of the fees included legitimate ticket charges and postage expenses, the remainder – not disclosed to firm customers - was applied to profit the firm and the affected securities agents.  The Consent Order directed the firm to reimburse Connecticut customers the difference between the “Misc.” or “Ticket Charge” fees incurred by the customers since January 1, 2008, and the actual amount of the firm’s ticket charges and postage fees.  In addition, the Consent Order directed the firm to amend its customer fee disclosures.  The Consent Order also fined the firm $15,000 and required that the firm reimburse the agency an additional $5,000 to cover investigative costs.

 
       Dated:  Tuesday, March 30, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner