The Department of Banking News Bulletin
Bulletin # 2433
Week Ending October 8, 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 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.
Newtown Savings Bank
4 Riverside Road
Sandy Hook, CT 06482
FROM: 2364 Foxon Road
North Branford, CT 06471
TO: 1714 Foxon Road
North Branford, CT 06471
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Securities Forum Registration Deadline is October 12th
This year’s Securities Forum on October 19, 2010 at the New Haven Lawn Club in New Haven, Connecticut promises to be an exciting and memorable event. The program runs from 10 a.m. to 4 p.m. Lunch and materials are included.
Speakers from FINRA, the SEC, the Connecticut Financial Planning Association and the Connecticut Department of Banking will guide you through the maze of regulatory changes in the Dodd-Frank Wall Street Reform and Consumer Protection Act in a practical, no-nonsense way. Connecticut U.S. Attorney David Fein will offer insights on key law enforcement initiatives undertaken by his office. Best of all, you will have the opportunity to network with your colleagues and ask hard questions of securities regulators. There’s still time to sign up for Securities Forum 2010: Revolution in Reform.
The registration deadline is October 12, 2010. The department is sensitive to cost issues, and has kept the registration fee modest to encourage as many people to attend as possible. The registration fee is $70 per person (compare with other course offerings in the industry) and includes a luncheon as well as a CD of written materials. Two to four attendees from the same firm pay even less per person ($65), and five or more attendees from the same firm pay only $60 each.
On October 5, 2010, the Banking Commissioner entered a Consent Order with respect to Andrew Garrett Inc., a Connecticut-registered broker-dealer located at 140 East 45th Street, 11th Floor, New York, New York. The Consent Order alleged that, from at least September 2008 through July 2009, the firm failed to establish and maintain an adequate supervisory system and that, as a result, the firm allowed its securities representatives to split commissions earned from Connecticut trading activity with an unregistered firm representative who had been the subject of a 2008 Consent Order entered by the Commissioner barring him from transacting securities business as an agent in Connecticut for seven years.
The Consent Order directed the firm to cease and desist from violative conduct, and required that it retain an independent consultant to review the firm’s internal supervisory and compliance procedures. The Consent Order also fined the firm $20,000.
Stipulation and Agreement
On October 8, 2010, the Banking Commissioner entered into a Stipulation and Agreement with Embassy Loans, Inc., an issuer of securities located at 6335 Stirling Road, Davie, Florida. The Stipulation and Agreement alleged that the company had been delinquent in making a Regulation D Rule 506 notice filing under Section 36b-21(e) of the Connecticut Uniform Securities Act with respect to an offering of Secured Redeemable Credit line Promissory Notes. In addition to making the requisite filing, Embassy Loans, Inc. agreed to pay a $500 fine and to refrain from offering or selling securities in or from Connecticut absent compliance with Section 36b-16 of the Act.
CONSUMER CREDIT DIVISION ACTIVITY
On September 30, 2010, the Commissioner entered into a Settlement Agreement with Eagle Mortgage Group, LLC
(“Eagle 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 Eagle Mortgage Group employed or retained, during the period of May 2, 2008 through June 1, 2009, three (3) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a 486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, after Eagle Mortgage Group had represented in a prior Settlement Agreement with the Commissioner that it had reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage related activity with Eagle Mortgage Group required licensure under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes. As part of this Settlement Agreement, Eagle Mortgage Group agreed to pay $6,000 as a civil penalty. A copy of the Settlement Agreement can be obtained from the Department’s website
On September 13, 2010, the Commissioner entered into a Settlement Agreement with Fairground Mortgage Company, Inc.
(“Fairground Mortgage”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Fairground Mortgage employed or retained, during the period of January 26, 2009 through February 16, 2009, one individual as a mortgage loan originator without licensing such individual, in violation of Section 36a-486(b) of the Connecticut General Statutes. As part of the Settlement Agreement, Fairground Mortgage agreed to pay $1,000 as a civil penalty. A copy of the Settlement Agreement can be obtained from the Department’s website
On September 13, 2010, the Commissioner entered into a Settlement Agreement with Jose Hernandez d/b/a Music & Mas
(“Jose Hernandez”). The Settlement Agreement was based on an investigation by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Jose Hernandez, during the period of December 31, 2008 through September 14, 2009, engaged in the business of cashing checks, drafts and money orders for consideration at 65 Cedar Street, Norwalk, Connecticut, without obtaining a license to operate a general facility or limited facility at such location, in violation of Section 36a-581(a) of the Connecticut General Statutes. As part of the Settlement Agreement, Jose Hernandez agreed to pay $3,000 as a civil penalty. A copy of the Settlement Agreement can be obtained from the Department’s website
Dated: Wednesday, October 13, 2010
Howard F. Pitkin