DOB: News Bulletin 2441 - December 3, 2010

The Department of Banking News Bulletin 

Bulletin # 2441
Week Ending December 3, 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
Bank Acquisition and Mergers
 
On December 1, 2010, pursuant to Section 36a-125 of the Connecticut General Statutes, the Commissioner approved the merger of Liberty Interim Bank, a Connecticut interim bank that is a wholly-owned subsidiary of Liberty Bank, a Connecticut-chartered mutual savings bank, with and into Connecticut River Community Bank, a Connecticut bank and trust company; and pursuant to Section 36a-184 of the Connecticut General Statutes, issued a notice of intent not to disapprove the acquisition by Liberty Bank of 100% of the voting securities of Connecticut River Community Bank resulting from such merger.  Also on December 1, 2010, pursuant to Section 36a-125 of the Connecticut General Statutes, the Commissioner approved the merger of Connecticut River Community Bank with and into Liberty Bank, immediately following the acquisition.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On November 8, 2010, the Commissioner entered into a Settlement Agreement with American Credit Exchange, Inc. (“American Credit Exchange”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that American Credit Exchange made a material misstatement in its 2009 application for renewal of its consumer collection agency license in Connecticut, in violation of Section 36a-804(a)(1) of the Connecticut General Statutes.  As part of the Settlement Agreement, American Credit Exchange agreed to pay $1,000 as a civil penalty.
 
On November 22, 2010, the Commissioner entered into a Settlement Agreement with Warshaw Capital, LLC d/b/a WC Financial (“Warshaw Capital”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that:  (1) Warshaw Capital employed or retained, during the period of January 1, 2009 through the present, one (1) individual as a mortgage loan originator without licensing such individual, in violation of Section 36a-486(b) of the 2010 Supplement to the General Statutes; (2) on December 1, 2009, Warshaw Capital filed a License/Registration Information Form (“MU1 Form”) with the Commissioner through the Nationwide Mortgage Licensing System, and that in such MU1 Form, Warshaw Capital answered “no” to disclosure question (J) which asked “[d]oes the entity have any unsatisfied judgments or liens against it?”, when, in fact, Warshaw Capital had two judgments that had been entered against it on April 1, 2009 and August 12, 2009, which judgments were not satisfied until July 14, 2010 and August 4, 2010, respectively, and that Warshaw Capital’s “no” response constitutes the making or causing to be made in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstance under which it is made, false and misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes; and (3) Warshaw Capital’s “no” response in its MU1 Form to the question of whether Warshaw Capital has any unsatisfied judgments or liens against it, despite two outstanding judgments against Warshaw Capital, constitutes a material misstatement in an application.  As part of the Settlement Agreement, Warshaw Capital agreed to pay $15,000 as a civil penalty.
 
       Dated:  Tuesday, December 7, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner