The Department of Banking News Bulletin
Bulletin # 2451
Week Ending February 11, 2011
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
State Banking Commissioner calls for
Public Hearing Related to Bank Merger
The Banking Commissioner hereby orders, pursuant to Section 36a-24 of the Connecticut General Statutes, that a hearing be held on Tuesday, March 8, 2011 at 5:00 pm at Manchester Community College, 161 Hillstown Road, Manchester, Connecticut in the Community Commons Room, located in the Great Path Academy building, on the applications for:
(1) the acquisition by First Niagara Financial Group Inc., New York, to acquire NewAlliance Bancshares Inc., and its subsidiary NewAlliance Bank, New Haven, Connecticut; and
(2) the merger of NewAlliance Bank with and into First Niagara Bank.
The hearing will be reconvened on Wednesday, March 9, 2011 at 5:00 pm in the Conte-West Hills School auditorium, 511 Chapel Street, New Haven, Connecticut.
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.
Naugatuck Savings Bank
* Naugatuck High School
543 Rubber Avenue
Naugatuck, CT 06770
notice of intent
not to disapprove
1715 Foxon Road
North Branford, CT 06471
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
213 White Street
Danbury, CT 06810
Order Revoking and Refusing to Renew Mortgage Broker License
and Order to Cease and Desist
On January 25, 2011, the Commissioner issued an Order Revoking and Refusing to Renew Mortgage Broker License and Order to Cease and Desist (“Order”) in the Matter of: Action Mortgage Corp. (“Respondent”). The Order revokes Respondent’s license to act as a mortgage broker in Connecticut; refuses to renew Respondent’s license to act as a mortgage broker in Connecticut, which causes such license to be deemed expired; and orders Respondent to cease and deist from violating Sections 36a 490(c)(2) and 36a-490(c)(3) of the 2010 Supplement to the General Statutes.
Order Revoking Mortgage Broker License, Order to Cease and Desist
and Order Imposing Civil Penalty
On January 25, 2011, the Commissioner issued an Order Revoking Mortgage Broker License, Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: Candor Mortgage Corporation (“Respondent”). The Order revokes Respondent’s license to act as a mortgage broker in Connecticut from 100 Round Hill Road, Kennett Square, Pennsylvania; orders Respondent to cease and desist from violating Section 36a-492 of the 2010 Supplement to the General Statutes and imposes a civil penalty of $2,500 against Respondent.
Order to Cease and Desist and Order imposing Civil Penalty
On January 25, 2011, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty in the Matter of: Revenue Management Service, Inc. (“Respondent”). The Order orders Respondent to cease and desist from violating Section 36a-801(a) of the 2010 Supplement to the General Statutes and Section 36a-17(d) of the Connecticut General Statutes, and imposes a civil penalty of $13,000 against Respondent.
On January 26, 2011, the Commissioner entered into a Settlement Agreement with Americay Mortgage Corporation (“Americay Mortgage”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Americay Mortgage employed or retained, during the period of January 15, 2008 through November 10, 2009, one (1) individual as an originator or mortgage loan originator without registering or licensing such individual, in violation of Sections 36a 486(b) and 36a-511(b) of the then applicable Connecticut General Statutes. As part of the Settlement Agreement, Americay Mortgage agreed to pay $1,000 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Florida Company Barred From Connecticut Securities Activity for Ten Years
On February 14, 2011, the Commissioner entered a Consent Order with respect to Grosvenor Partners, Ltd. a/k/a Aster Associates, a limited partnership located at 223 Coral Lane, Palm Beach, Florida. The respondent’s principal is Frank J. Avellino. Grosvenor Partners, Ltd. had been the subject of a June 24, 2010 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that, commencing in June 1995, Grosvenor Partners, Ltd. violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities by failing to make key disclosures to investors, including the fact that Frank J. Avellino had been the subject of a 1992 Order of Preliminary Injunction and Other Equitable Relief on Consent procured by the Securities and Exchange Commission (Securities and Exchange Commission v. Avellino & Bienes et al., No. 92-CF-8314 (S.D.N.Y)). The SEC action had alleged that Frank Avellino guaranteed that investors could achieve a return of between 13.5% and 20% by investing monies with Bernard L. Madoff. The June 24, 2010 Order to Cease and Desist and Notice of Intent to Fine had also alleged that 1) the respondent failed to tell at least one Connecticut investor that all of the investor’s funds would be placed with Bernard Madoff; and 2) the respondent’s offering of limited partnership interests absent registration violated Section 36b-16 of the Act.
The Consent Order acknowledged that 1) Grosvenor Partners, Ltd. had provided documentation to the Division evidencing its financial inability to pay the fine that otherwise would have been assessed against it; and 2) to facilitate the informal resolution of the matter, Frank J. Avellino had consented to the entry of certain sanctions against him. Without admitting or denying that it had violated Sections 36b-16 and 36b-4(a) of the Connecticut Uniform Securities Act, Grosvenor Partners, Ltd. consented to be barred for ten years from transacting business in or from Connecticut as a broker-dealer or investment adviser. The Consent Order also directed Grosvenor Partners, Ltd. to cease and desist from regulatory violations. In addition, the Consent Order barred Frank J. Avellino from seeking Connecticut registration as a broker-dealer, agent, investment adviser or investment adviser agent for five years.
Dated: Tuesday, February 15, 2011
Howard F. Pitkin