DOB: News Bulletin 2426 - August 20, 2010

The Department of Banking News Bulletin 

Bulletin # 2426
Week Ending August 20, 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
Representative Office

On August 17, 2010, pursuant to Section 36a-428g of the Connecticut General Statutes, The Royal Bank of Scotland N.V., a bank chartered under the laws of The Netherlands with its principal place of business in Amsterdam, The Netherlands, filed an application to establish and maintain a representative office at 600 Washington Boulevard, Stamford, Connecticut.
 

Acquisition Statement

On August 13, 2010, pursuant to Section 36a-184 of the Connecticut General Statutes, First City Fund Corporation (“FCFC”), a non-profit Connecticut non-stock corporation, and First Community Bancorp, Inc. (“FCBI”), a for-profit Connecticut corporation, filed an acquisition statement for FCFC to acquire 100% of the outstanding voting shares of FCBI and for FCBI to acquire 100% of the outstanding voting shares of common stock of Start Community Bank, a Connecticut bank in organization.  In connection with the acquisition, FCFC and FCBI filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.
 

CONSUMER CREDIT DIVISION ACTIVITY
Denial
 
On July 22, 2010, the Commissioner denied the issuance of a debt negotiation license in Connecticut to CSA – Credit Solutions of America, Inc., d/b/a Credit Solutions of America d/b/a Credit Solutions d/b/a CSA of Dallas, Texas.  A copy of the Notice can be obtained from the Department’s website.
 

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
 
On July 27, 2010, the Commissioner issued 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 (“Notice”) in the Matter of:  Embassy Investment Mortgage Corp. (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 614 Halstead Avenue, Mamaroneck, New York, in violation of Section 36a-492 of the 2010 Supplement to the General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  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.
 
Notice of Intent to Issue Order to Cease and Desist,
Notice of Intent to Impose Civil Penalty
 
On July 30, 2010, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  John Mazza (“Respondent”).  The Notice alleged that Respondent engaged in acts and conduct which constituted (1) knowingly making false statements with intent to defraud and for the purpose of influencing the action of a licensed mortgage correspondent lender, in violation of Section 36a-56 of the Connecticut General Statutes, and (2) acts of fraud or misrepresenting, concealing, suppressing, intentionally omitting or otherwise intentionally failing to disclose material particulars of residential mortgage loan transactions to someone entitled to such information as provided in Section 36a-494(b) of the 2010 Supplement to the 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.
 

Order of Summary Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License,
Notice of Intent to Revoke Mortgage Loan Originator License,
 Notice of Intent to Issue Order to Cease and Desist,
Notice of Intent to Impose Civil Penalty
 
On August 3, 2010, the Commissioner issued an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Action Mortgage Corp. (“Action Mortgage”) and Nathan M. Russo (“Russo”).  The Notice alleged that: (1) the filing of a Criminal Complaint and Indictment against Russo constitutes a basis for the Commissioner to conclude that a control person of Action Mortgage fails to demonstrate that the financial responsibility, character and general fitness of such control person are such as to command the confidence of the community and to warrant a determination that Action Mortgage will be operated honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes; (2) the filing of a Criminal Complaint and Indictment against Russo constitutes a basis for the Commissioner to conclude that Russo fails to demonstrate that the financial responsibility, character and general fitness of Russo are such as to command the confidence of the community and to warrant a determination that Russo will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes; (3) the issuance of an Emergency Orders by the State of Rhode suspending the loan broker license of Action Mortgage (“Action Mortgage Order”) and the mortgage loan originator license of Russo (“Russo Order”) constitutes a basis for the Commissioner to conclude that Action Mortgage fails to demonstrate that the financial responsibility, character and general fitness of Action Mortgage are such as to command the confidence of the community and to warrant a determination that Action Mortgage will be operated honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes; (4) Action Mortgage failed to inform the Commissioner of the Criminal Complaint, Indictment, Action Mortgage Order and Russo Order, in violation of Sections 36a-490(c)(2) and 36a-490(c)(3) of the 2010 Supplement to the General Statutes; and (5) Russo failed to informed the Commissioner of the Criminal Complaint, Indictment and Russo Order, in violation of Section 36a-490(d)(2) of the 2010 Supplement to the General Statutes  The Commissioner also found that public welfare required the issuance of a temporary order to cease and desist against Action Mortgage and that public safety and welfare imperatively required emergency action to summarily suspend Russo’s mortgage loan originator license in Connecticut. Respondents were 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 August 9, 2010, the Commissioner entered into a Settlement Agreement with Hector Chica (“Chica”).  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 Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on March 26, 2010, that Chica engaged in the business of cashing checks, drafts and money orders for consideration without licensure for a general facility or limited facility.  As part of the Settlement Agreement, Chica agreed to pay $5,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On August 9, 2010, the Commissioner entered into a Settlement Agreement with Celina Romero (“Romero”).  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 Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on March 26, 2010, that Romero engaged in the business of cashing checks, drafts and money orders for consideration without licensure for a general facility or limited facility.  As part of the Settlement Agreement, Romero agreed to pay $5,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On August 9, 2010, the Commissioner entered into a Settlement Agreement with Servicial Group Corporation d/b/a Servicial (“Servicial”).  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 Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on March 26, 2010, that Servicial failed to fully cooperate with the Commissioner during the course of an examination of Servicial, in violation of Section 36a-17(d) of the Connecticut General Statutes and failed to surrender its license to the Commissioner after ceasing to engage in the business of cashing checks, drafts and money orders for consideration at its general facility, in violation of Section 36a-583 of the Connecticut General Statutes.  As part of the Settlement Agreement, Servicial agreed to pay $1,500 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
 
       Dated:  Tuesday, August 24, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner