DOB: News Bulletin 2444 - December 24, 2010

 
The Department of Banking News Bulletin 

Bulletin # 2444
Week Ending December 24, 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
12/20/10
Liberty Bank
Middletown
1300 Main Street
Newington, CT  06111
filed
 
New Bank Activity

On December 20, 2010, pursuant to Section 36a-70 of the 2010 Supplement to the General Statutes of Connecticut, the Banking Commissioner, State Treasurer and State Comptroller issued a final certificate of authority to Start Community Bank, New Haven, Connecticut, authorizing it to commence the business of a bank and trust company.  The bank officially opened on the same date at 299 Whalley Avenue, New Haven, Connecticut.
 
Community Reinvestment Plan
 
On December 20, 2010, First Niagara Financial Group, Inc., and FNFG Merger Sub, Inc., filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.  The filing was made in connection with an acquisition statement and applications filed on November 1, 2010, pursuant to Sections 36a-126, 36a-184, 36a-411, and 36a-412(a)(1) of the Connecticut General Statutes for the acquisition of NewAlliance Bancshares, Inc., and its wholly-owned subsidiary, NewAlliance Bank, a Connecticut bank, and the merger of NewAlliance Bank with and into First Niagara Bank, N.A.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Massachusetts Company Fined $10,000 for Employing
Unregistered Agent of Issuer;
Order to Cease and Desist Made Permanent
 
On December 22, 2010, the Banking Commissioner entered an Order Imposing Fine against Grove Electronics, LLC d/b/a Chip Partners LLC, an issuer of promissory notes located at 197 Main Street, Suite 206, North Reading, Massachusetts.  The Order Imposing Fine had been preceded by a November 23, 2010 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that, in contravention of Section 36b-6(b) of the Connecticut Uniform Securities Act, the respondent sold securities through one James Fowler Hickman, an unregistered agent of issuer.  In fining the respondednt $10,000, the Commissioner found that Grove Electronics, LLC committed one violation of Section 36b-6(b) of the Act.  The respondent did not appear or contest the imposition of the fine.  The Order to Cease and Desist, being uncontested, had become permanent on December 11, 2010.
 
CONSUMER CREDIT DIVISION ACTIVITY
Temporary Order to Cease and Desist, Notice of Intent to Issue
Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
 
On December 7, 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:  Expert Financial Services, Inc. (“Respondent”).  The Notice alleged that Respondent engaged and 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 imposed a fee upon debtors in connection with its debt negotiation activity in Connecticut in excess of $500, in violation of Section 36a-671b(b) of the 2010 Supplement to the General Statutes, which violations form the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty upon Respondent pursuant to Section 36a-671a(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke Mortgage Broker License, Notice of Intent
to Issue Order to Cease and Desist and
Notice of Intent to Impose Civil Penalty
 
On December 13, 2010, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Broker License, 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:  Candor Mortgage Corporation (“Respondent”).  The Notice alleged that Respondent (1) failed to file with the Commissioner the new form of surety bond in an appropriate amount by July 31, 2010, in violation of Section 36a-492 of the 2010 Supplement to the General Statutes and (2) failed to maintain a surety bond that ran concurrent with the period of its mortgage broker license for 100 Round Hill Road, Kennett Square, Pennsylvania, in violation of Section 36a 492 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.
 
Decision and Order on Petition for Reconsideration
 
On December 6, 2010, pursuant to Section 4-181a(a)(3) of the Connecticut General Statutes, the Commissioner issued a Decision and Order on Petition for Reconsideration (“Order”) In the Matter of:  Allied Financial Services, LLC (“Allied Financial”) and Ayeshah Malik (“Malik”).  The Order reverses and vacates the Commissioner’s August 23, 2010, Findings of Fact, Conclusions of Law and Order issued against Allied Financial and Malik in which the Commissioner:  (1) revoked Allied Financial’s license to act as a mortgage broker in Connecticut, (2) ordered Allied Financial to cease and desist from violating Sections 36a-17(d) and 36a-493(a) of the Connecticut General Statutes, (3) ordered Malik to cease and desist from violating Section 36a-17(d) and 36a-53a of the Connecticut General Statutes, and (4) imposed a civil penalty on Allied Financial in the amount of $25,000 and upon Malik in the amount of $15,000.
 
Order to Cease and Desist and Order Imposing Civil Penalty
 
On December 14, 2010, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Richmond Results, LLC (“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.  Pursuant to Section 36a-671a(b) of the 2010 Supplement to the General Statutes and Sections 36a-52(a) and 36a 50(a) of the Connecticut 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 $10,000.
 
Settlement Agreements
 
On December 6, 2010, the Commissioner entered into a Settlement Agreement with Allied Financial Services, LLC (“Allied Financial”) and Ayeshah Malik (“Malik”).  On April 9, 2009, as a result of an investigation, the Commissioner alleged in a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that during an examination by the Consumer Credit Division (1) Allied Financial, through Malik, failed to provide copies of certain loan files that the Division examiners required to be produced and failed to otherwise furnish the examiners with unrestricted access to its records, in violation of Sections 36a-17(d) and 36a-493(a) of the Connecticut General Statutes, and (2) Malik made a statement to Division examiners that was false and misleading, in violation of Section 36a-53a of the Connecticut General Statutes.  As part of the Settlement Agreement, Allied Financial agreed to compile and continuously maintain a complete listing of all loans in process and closed, which list shall be available upon request to the Commissioner or any of his employees.
 
On December 10, 2010, the Commissioner entered into a Settlement Agreement with Phoenix Mortgage, LLC d/b/a Phoenix Financial (“Phoenix Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Phoenix Mortgage employed or retained, during the period of September 18, 2008 through March 25, 2009, one (1) individual as a mortgage loan originator without licensing such person, in violation of Section 36a-486(b) of the Connecticut General Statutes.  As part of the Settlement Agreement, Phoenix Mortgage agreed to pay $1,000 as a civil penalty.
 
 
       Dated:  Tuesday, December 28, 2010
 
 
       Howard F. Pitkin
       Banking Commissioner