DOB: News Bulletin 2435 - October 22, 2010

The Department of Banking News Bulletin 

Bulletin # 2435
Week Ending October 22, 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
10/18/10
Liberty Bank
Middletown
48 East Street
Plainville, CT  06062
opening
date
10/20/10
Liberty Bank
Middletown
852 East Main Street
Meriden, CT  06450
notice of intent
not to disapprove
 
Acquisition Statements

On October 15, 2010, pursuant to Section 36a-184 of the Connecticut General Statutes, George F. D’Angelo and John J. Fareri filed an acquisition statement to acquire, both individually and collectively, more than 25% of the outstanding voting securities of The First Bank of Greenwich, a Connecticut bank and trust company headquartered in Cos Cob, Connecticut.
 
On July 15, 2010, the acquisition statement filed pursuant to Section 36a-184 of the Connecticut General Statutes, by GAP V Bankvest, LLC, Greenfield Acquisition Company V, LLC, Greenfield Acquisition Partners V, L.P., GAP V Management, LLC, Greenfield Partners, LLC, and Eugene A. Gorab, to acquire approximately 24.9% of the voting securities of Alcar LLC, and indirectly approximately 22% of the voting securities of Darien Rowayton Bank, a Connecticut Bank, was amended to remove Greenfield Acquisition Company V, LLC as an acquirer.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist; Notice of Intent to Fine and
Notice of Right to Hearing Issued

On October 22, 2010, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Digital In-Motion, LLC, a Connecticut limited liability company located at 25 Third Street, Stamford, Connecticut, and Paul H. Couture, the managing member of Digital In-Motion, LLC.  The action alleged that, from at least June 2007 forward, the respondents offered and sold unregistered digital signage system business opportunities to purchaser-investors in violation of the Connecticut Business Opportunity Investment Act.  The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On October 5, 2010, the Commissioner entered into a Settlement Agreement with United Capital Lenders LLC (“United Capital Lenders”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that United Capital Lenders employed or retained, during the period of March 25 through May 12, 2009, two (2) individuals as mortgage loan originators without licensing them, in violation of Section 36a 486(b) of the Connecticut General Statutes.  As part of the Settlement Agreement, United Capital Lenders agreed to pay $2,000 as a civil penalty.
 
On October 7, 2010, the Commissioner entered into a Settlement Agreement with Credit Bureau Collection Services, Inc. d/b/a CBCS (“Credit Bureau”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Credit Bureau failed to notify the Commissioner, in writing, not later than ten business days from the entry by the United States District Court for the Southern District of Ohio, Eastern Division, of a March 31, 2010, Consent Decree among Credit Bureau; Larry Ebert, Credit Bureau’s President; Brian Striker, Credit Bureau’s Vice President, and the Federal Trade Commission, in violation of Section 36a 801(b)(1) of the 2010 Supplement to the General Statutes.  As part of the Settlement Agreement, Credit Bureau agreed to pay $1,000 as a civil penalty.
 
On October 7, 2010, the Commissioner entered into a Settlement Agreement with Equity America Mortgage Services, Inc. (“Equity America Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Equity America Mortgage employed or retained, during the period of January 6, 2009 through February 7, 2009, one (1) 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, Equity America Mortgage agreed to pay $1,000 as a civil penalty.
 
On October 7, 2010, the Commissioner entered into a Settlement Agreement with Waterhouse Financial Mortgage Consultants, LLC (“Waterhouse Financial”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Waterhouse Financial employed or retained, during the period of December 14, 2009 through February 20, 2010, one (1) 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, Waterhouse Financial agreed to pay $1,000 as a civil penalty.
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist
Notice of Intent to Revoke and Refuse to Renew Consumer Collection
Agency License, Notice of Intent to Issue Order to Cease and Desist
 
On September 15, 2010, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Collectors Training Institute of Illinois, Inc. d/b/a CTI Collection Services (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 3333 West Arthington Street, Suite 550, Chicago, Illinois, in violation of Section 36a 802(a) of the 2010 Supplement to the General Statutes.  The Commissioner also found that public welfare required the issuance of 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.
 
Temporary Order to Cease and Desist, Notice of Intent to Issue
Order to Cease and Desist, Notice of Intent to Impose Civil Penalty
 
On October 5, 2010, the Commissioner issued a Temporary Order to Cease and Desist, 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:  Loan Solutions, LLC (“Respondent”).  The Notice alleged that Respondent engaged 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.  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.
 
On October 5, 2010, the Commissioner issued a Temporary Order to Cease and Desist, 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:  Richmond Results, LLC (“Respondent”).  The Notice alleged that Respondent engaged 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.  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.
 
Order to Cease and Desist and Order Imposing Civil Penalty
 
On September 22, 2010, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Liberty Consulting Corp. (“Respondent”).  The basis of the Order was 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.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the 2010 Supplement to the General Statutes, and to pay a civil penalty in the amount of $13,000.
 
 
       Dated:  Tuesday, October 26, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner