DOB: News Bulletin 2445 - December 31, 2010

 
The Department of Banking News Bulletin 

Bulletin # 2445
Week Ending December 31, 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
12/28/10
Newtown Savings Bank
Newtown
2 Riverside Road
Sandy Hook, CT 06482
notice of intent
not to disapprove
12/29/10
 
Farmington Bank
Farmington
176L Newington Road
West Hartford, CT 06110
filed
 
 
Conversion
 
On December 30, 2010, pursuant to Sections 36a-197 and 36a-136 of the Connecticut General Statutes, the Commissioner approved the conversion of Rockville Financial MHC, Inc. from a mutual holding company to a capital stock holding company.  Also on December 30, 2010, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by Rockville Financial New, Inc., a newly-formed Connecticut stock corporation, to acquire 100% of the issued and outstanding common stock of Rockville Bank, a Connecticut bank headquartered in Rockville, Connecticut.
 
Acquisition
 
On December 30, 2010, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by SI Financial Group, Inc., of 100 percent of the voting securities of Savings Institute Bank and Trust Company.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreement
 
On December 16, 2010, the Commissioner entered into a Settlement Agreement with Independent Mortgage Company, Inc. (“Independent Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Independent Mortgage employed or retained, during the period of May 18 through October 2, 2008, two (2) 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.  As part of the Settlement Agreement, Independent Mortgage agreed to pay $2,000 as a civil penalty.

Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke and Refuse to Renew
Mortgage Lender License, Notice of Intent to Issue
Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
 
On December 14, 2010, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Lender 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:  Hawthorne Capital Corp (“Respondent”).  The Notice alleged that Respondent failed to file 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 failed to maintain a surety bond that ran concurrent with its license for 198 Route 9 North, Suite 100, Manalapan, New Jersey, 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.
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke and Refuse to Renew Mortgage
Correspondent Lender License, Notice of Intent to Issue
Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
 
On December 14, 2010, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Correspondent Lender 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:  LendXFinancial LLC (“Respondent”).  The Notice alleged that Respondent failed to file 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 failed to maintain a surety bond that ran concurrent with its license for 1155 Perimeter Center West #600, Atlanta, Georgia, 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.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order

On December 14, 2010, the Banking Commissioner entered a Consent Order with respect to Wells Fargo Investments, LLC, a Connecticut-registered broker-dealer located at 420 Montgomery Street, 12th Floor, San Francisco, California.  The settlement, which recited that the firm had agreed to purchase certain auction rate securities (ARS) from customers as a remedial measure, followed a multi-state task force investigation into the firm’s ARS activities.  The Consent Order alleged that the firm failed to reasonably supervise its registered agents in connection with the marketing of ARS to its customers.  The Consent Order fined the firm $6,501.09, and required that it cease and desist from regulatory violations.
 
 
       Dated:  Tuesday, January 4, 2011
 
       Howard F. Pitkin
       Banking Commissioner