DOB: News Bulletin 2429 - September 10, 2010

The Department of Banking News Bulletin 

Bulletin # 2429
Week Ending September 10, 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
9/01/10
Bank of England
England, AR
* 44 Pond Road
   Old Saybrook, CT 06475
filed
*Limited Branch - LPO
 
 
Bank Acquisition and Merger
 
On September 7, 2010, an application was filed, pursuant to Section 36a-125 of the Connecticut General Statutes, by Liberty Bank, a Connecticut-chartered mutual savings bank headquartered in Middletown, CT, and Connecticut River Community Bank, a Connecticut bank and trust company headquartered in Wethersfield, CT, for the merger of Connecticut River Community Bank with and into Liberty Bank.  In connection with the transaction, pursuant to Section 36a-184 of the Connecticut General Statutes, Liberty Bank filed an acquisition statement to acquire 100% of the voting securities of Connecticut River Community Bank.
 
Also in connection with the transaction, on September 7, 2010, an application was filed, pursuant to Section 36a-70(p)(1) of the Connecticut General Statutes, by Liberty Bank to establish Liberty Interim Bank, a Connecticut interim bank to be organized solely to facilitate the acquisition and merger of Connecticut River Community Bank.  The organizers of Liberty Interim Bank are Chandler J. Howard and Thomas J. Pastorello. 
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Department to Host Securities Forum 2010
 
The State of Connecticut Department of Banking is hosting Securities Forum 2010:  Revolution in Reform, on Tuesday, October 19, 2010 at the New Haven Lawn Club in New Haven, Connecticut.  The program runs from 10:00 a.m. to 4:00 p.m.  The keynote speaker will be David B. Fein, United States Attorney for the District of Connecticut.
 
The program will highlight groundbreaking economic reforms enacted and proposed by the U.S. Congress as well as practical compliance tips for broker-dealers, investment advisers and securities law practitioners.  The registration fee is $70 per person, and includes a luncheon; 2-4 attendees from the same firm pay a discounted fee of $65 per person; and 5 or more attendees from the same firm pay only $60 each.  Don't miss out on this unique opportunity to hear about financial developments from the regulators themselves and to compare notes with other financial services industry professionals.  You can download a registration form and read the agenda on the Department's website.
 

CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On August 25, 2010, the Commissioner entered into a Settlement Agreement with RMG Mortgage Group, LLC (“RMG Mortgage’’).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleges that RMG 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 2200 North Ponce De Leon Boulevard, Suite 2, St. Augustine, Florida, in violation of Section 36a-492 of the 2010 Supplement to the General Statutes.  As part of the Settlement Agreement, RMG Mortgage agreed to have its license marked “Ordered Surrendered” on the Nationwide Mortgage Licensing System.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On August 30, 2010, the Commissioner entered into a Settlement Agreement with Individual Financing Solutions, LLC (“Individual Financing Solutions”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleges that Individual Financing Solutions acted as a mortgage broker, during the period of January through August 2008, from an unlicensed location, in violation of Section 36a-490 of the then applicable Connecticut General Statutes.  As part of the Settlement Agreement, Individual Financing Solutions 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 30, 2010, the Commissioner entered into a Settlement Agreement with Rapid Response Mortgage Services, LLC (“Rapid Response”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Rapid Response employed or retained, during the period of August 13, 2008 through April 1, 2009, two individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the applicable Connecticut General Statutes.  As part of the Settlement Agreement, Rapid Response agreed to pay $2,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
Notice of Intent to Refuse to Renew Mortgage Loan Originator License
 
On August 13, 2010, the Commissioner issued a Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Notice of Right to Hearing (“Notice”) in the Matter of:  Donna Lynn Petrafassi (“Respondent”).  The Notice alleged that Respondent’s felony convictions, which have not been pardoned, would be sufficient grounds for the Commissioner to deny an application for a mortgage loan originator license under Section 36a-489(b)(1)(B) of the 2010 Supplement to the General Statutes, which constitute sufficient grounds for the Commissioner to refuse to renew Respondent’s mortgage loan originator license.  Such convictions also cause Respondent to fail to meet the minimum standards for renewal of such license under Section 36a 489(b)(2) of the 2010 Supplement to the General Statutes, which shall cause such license to expire.  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 August 24, 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:  Liberty Consulting Corp. (“Respondent”).  The Notice alleged that Respondent offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2010 Supplement to the General Statutes, and that Respondent failed to fully cooperate with the Commissioner during the course of an examination, in violation of Section 36a-17(d) of the Connecticut 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.
 

 
       Dated:  Tuesday, September 14, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner