DOB: News Bulletin 2427 - August 27, 2010

The Department of Banking News Bulletin 

Bulletin # 2427
Week Ending August 27, 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 2010 Supplement to the 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
8/25/10
Union Savings Bank
Danbury
411 Monroe Turnpike
Monroe, CT  06468
filed
 

STATE CREDIT UNION ACTIVITY
Branch Activity
 
Date Credit Union Location Activity
8/23/10
Connex Credit Union, Inc.
North Haven
FROM: 350 Boston Post Road
          Orange, CT  06477
TO:    212 Boston Post Road
          Orange, CT  06477
approved
to relocate 
 

Consent Order

On July 22, 2010, the Federal Deposit Insurance Corporation (“FDIC”), with the concurrence of the Banking Commissioner, issued a Consent Order against The Wilton Bank.  The order may be viewed on the FDIC’s website.
 
New Bank Activity
 
The application to organize Sachem Bank, Madison, Connecticut, pursuant to Section 36a-70 of the Connecticut General Statutes, has been amended to add Kevin S. O’Neill 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, Bulletin #2397, dated February 2, 2010, and Bulletin #2403, dated March 16, 2010.
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist and Notice of Intent to Fine Issued

 
On August 23, 2010, the Banking Commissioner issued an Order to Cease and Desist and Notice of Intent to Fine against Daniel Morris Porter d/b/a D.P. Holdings Inc. of 1390 Vespucci Avenue, Copiague, New York and 109 Maple Parkway, Staten Island, New York; and J. Lawson & Associates, Inc. and Jason Alexander Lawson, both of 134-25 Franklin Avenue, #303, Flushing, New York.  The action alleged that respondents participated in a transaction involving procuring funds from a Connecticut investor for the purported purpose of investing in securities of Ionic Water Technologies Inc.  In reality, the investor’s monies were deposited into a J. Lawson & Associates, Inc. bank account established by respondents Daniel Morris Porter and Jason Alexander Lawson who used the investor’s money for their personal use and not for the purchase of securities.  According to the action, the investor did not receive either Ionic Water Technologies Inc. securities or a return of funds paid to the respondents.  The action alleged that 1) respondents Porter and J. Lawson & Associates, Inc. transacted business as broker-dealers in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and that respondent Jason Alexander Lawson materially aided in such violation; and 2) respondents Porter and J. Lawson & Associates, Inc., with the material assistance of respondent Jason Lawson, violated the antifraud provisions in Section 36b-4(a) of the Act.  Each of the respondents was afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.

Broker-dealer Registration Revoked,
Order to Cease and Desist Made Permanent
 
On August 23, 2010, the Banking Commissioner entered an Order revoking the broker-dealer registration of Itradedirect.com and fining the firm $45,000.  The firm maintains its principal office at 1600 NW Boca Raton Boulevard, Suite 22, Boca Raton, Florida.  The Order Revoking Registration as Broker-dealer and Order Imposing Fine had been preceded by a June 3, 2010 Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine (Docket No. RCF-10-7699-S) alleging that the firm violated the antifraud provisions in the Connecticut Uniform Securities Act and engaged in dishonest and unethical practices by not disclosing to Connecticut customers that a $65 per transaction “Handling Fee” was not based on actual handling costs but included a profit to the firm.  The June 3, 2010 action had also alleged that the firm 1) violated Section 36b-6(b) of the Act by employing at least five unregistered agents; and 2) violated Section 36b-31-6f of the Regulations under the Act by allowing its agents to use unapproved sales scripts in their communications with the public.  Since the firm had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent on July 23, 2010.
 
In revoking the firm’s broker-dealer registration and fining the firm $45,000, the Commissioner adopted as findings the legal and factual matters alleged in the June 3, 2010 action.  Itradedirect.com Corp. did not appear or contest the imposition of the fine or the revocation of its Connecticut broker-dealer registration.

 New York Man Fined $75,000 in Conjunction with Unregistered
Promissory Note Sales; Order to Cease and Desist Rendered Permanent
 
On August 23, 2010, the Banking Commissioner entered an Order Imposing Fine against Joel Torres of 149-27 84th Street, Howard Beach, New York.  The respondent previously maintained a residence at 256 Washington Boulevard, Unit 10, Stamford, Connecticut.  Respondent Torres had been the subject of a July 15, 2010 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-10-7746-S) alleging that from at least June 8, 2009, respondent Torres violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered promissory notes.  The July 15, 2010 action had also alleged that respondent Torres violated the antifraud provisions in Section 36b-4(a) of the Act by failing to disclose to investors the risks associated with the investment, background financial information on the respondent or factors relating to the respondent’s ability to meet the note obligations.  Since Joel Torres had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent on August 11, 2010.
 
In fining respondent Torres $75,000, the Commissioner found that Joel Torres violated Sections 36b-16 and 36b-4(a) of the Act.  The respondent did not appear or contest the imposition of the fine.
 

CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On August 12, 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 examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Advisors Mortgage Group retained or employed, during the period of January 7, 2009 through April 28, 2009, three(3) individuals as mortgage loan originators without licensing such individuals, in violation of Section 36a-486(b) of the Connecticut General Statutes.  As part of the Settlement Agreement, Advisors Mortgage Group agreed to pay $3,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On August 17, 2010, the Commissioner entered into a Settlement Agreement with Speedy Gonzalez Multiservices, LLC (“Speedy Gonzalez”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleges that Speedy Gonzalez engaged in the business of cashing checks, drafts and money orders for consideration without licensure for a general facility or limited facility at 155 West Cedar Street, Norwalk, Connecticut, in violation of Section 36a-581(a) of the 2010 Supplement to the General Statutes.  As part of the Settlement Agreement, Speedy Gonzalez agreed to pay $3,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
Denial
 
On August 17, 2010, the Commissioner denied the issuance of a check cashing services license to Servicios Latino Express, LLC to operate a general facility at 610 Ferry Street, New Haven, Connecticut.  A copy of the denial can be obtained from the Department’s website.
 
 
 
       Dated:  Tuesday, August 31, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner