DOB: Bulletin 2458 - April 1, 2011

The Department of Banking News Bulletin 

Bulletin # 2458
Week Ending April 1, 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
Branch Activity
 
Section 36a-145 of the Connecticut 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
4/05/11
Farmington Bank
Farmington
176L Newington Road
West Hartford, CT  06110
opening
date
6/30/11
Fairfield County Bank
Ridgefield
180 Post Road East
Westport, CT  06880
closing
date
 
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
 
Date Check Casher Location Activity
3/29/11
Ace's Smoke and Cell Shop LLC
d/b/a Ace's Check Cashing
250 Farmington Avenue
Hartford, CT  06112
approved
 
Consent Orders
 
On February 16, 2011, the Commissioner entered into a Consent Order with Taylor, Bean & Whitaker Mortgage Corp. (“Taylor, Bean & Whitaker’’), which was approved by the United States Bankruptcy Court for the Middle District of Florida, Jacksonville Division on March 30, 2011.  The Consent Order was based on investigations by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in an Amended and Restated Temporary Order to Cease and Desist, Amended and Restated Notice of Intent to Revoke Mortgage Lender Licenses, Amended and Restated Notice of Intent to Issue Order to Cease and Desist, Amended and Restated Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Taylor, Bean & Whitaker on August 21, 2009, (collectively “Amended Order”) that Taylor, Bean & Whitaker failed to fund at least 15 residential mortgage loans, which constitutes a failure to perform an agreement with borrowers, and failed to pay the loan proceeds for at least 110 residential mortgage loans.  In addition, on September 25, 2009, the Commissioner alleged in a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Lender Licenses, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued against Taylor, Bean & Whitaker (collectively, “September Notice”), that Taylor, Bean & Whitaker failed to maintain surety bonds that ran concurrently with the period of its mortgage lender licenses for 950 South Winter Park Drive, Suite 120, Casselberry, Florida; 3950 Premier North Drive, Tampa, Florida; 814 Highway A1A North, Suite 205, Ponte Vedra Beach, Florida; 35 Braintree Hill Park, Suite 402, Braintree, Massachusetts; and 755 Business Center Drive, Suite 150, Horsham, Pennsylvania, in violation of Connecticut law.  Further, on October 27, 2009, the Commissioner alleged in a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued against Taylor, Bean & Whitaker (collectively, “October Notice”), that Taylor, Bean & Whitaker failed to maintain a surety bond that ran concurrently with the period of its mortgage lender license for 560 South Line Road, Lecanto, Florida, in violation of Connecticut law.  As part of the Consent Order, Taylor, Bean & Whitaker will be permanently barred from obtaining any license from the Commissioner and will not seek licensure from the Commissioner at any point in the future.
 
On March 17, 2011, the Commissioner entered into a Consent Order with Mortgage Markets CUSO, LLC (“Mortgage Markets”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Mortgage Markets was engaged in the business of making residential mortgage loans without a mortgage lender license, in violation of Section 36a-486(a) of the Connecticut General Statutes, and employed or retained one (1) individual as a mortgage loan originator who was not licensed, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes.  As part of the Consent Order, Mortgage Markets was ordered to pay $11,000 as a civil penalty.
 
On March 25, 2011, the Commissioner entered into a Consent Order with Charles A. Hinkle (“Hinkle”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that from on or about January 8, 2009 to on or about March 11, 2009, Hinkle acted as an unlicensed mortgage loan originator in connection with a single residential mortgage loan in Connecticut in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  As part of the Consent Order, Hinkle was ordered to pay $1,000 as a civil penalty.
 
On March 24, 2011, the Commissioner entered into a Consent Order with RA Law Group.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that RA Law Group engaged in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Consent Order, RA Law Group was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, pay $3,000 as a civil penalty, and refund all monies paid by Connecticut residents for debt negotiation services since October 2009.
 
Settlement Agreement
 
On March 23, 2011, the Commissioner entered into a Settlement Agreement with Envios R.D. Corp. d/b/a Pronto Envios (“Pronto Envios’’).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in a Temporary Order to Cease and Desist, Notice of Intent to Revoke Money Transmission License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Pronto Envios on January 15, 2010, that, inter alia, Pronto Envios failed to (1) transmit money or monetary value received from purchasers or to return such money or monetary value to purchasers, which constitutes conduct that is likely to otherwise materially prejudice the interests of purchasers, which conduct constitutes an unsafe or unsound practice, within the meaning of Section 36a 596(16) of the Connecticut General Statutes, as amended by Public Act 09-208, and (2) promptly notify the Commissioner, in writing, of a March 6, 2006 Cease and Desist Order issued against Pronto Envios by the State of California, Department of Financial Institutions, and a June 6, 2007 Consent Agreement with the State of New Hampshire, Department of Banking, which constitutes a failure to promptly notify the Commissioner, in writing, of any change in the information provided in the application for the most recent renewal of such license, in violation of Section 36a-598(b) of the Connecticut General Statutes, as amended by Public Act 09-208.  As part of the Settlement Agreement, Pronto Envios agreed to deposit as a one-time payment One Thousand Five Hundred Dollars ($1,500) in an escrow account in a financial institution of Pronto Envios’ choosing, which shall be maintained in such account for a period of one year, for the purpose of reconciling any outstanding amount due to its agents for senders located in the state of Connecticut.  Also as part of the Settlement Agreement, Pronto Envios is barred for a period of three (3) years from applying for a license to engage in the business of money transmission or to engage in the business of issuing Connecticut payment instruments in Connecticut, and Rodger Zepka, President of Pronto Envios, is barred for a period of one (1) year from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed under the Connecticut Money Transmission Act.
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke Consumer Collection Agency License,
Notice of Intent to Issue Order to Cease and Desist
 
On March 17, 2011, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke 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:  LDG Financial Services, LLC (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 7001 Peachtree Industrial Boulevard, Building 3, Norcross, Georgia, in violation of Section 36a-802(a) of the Connecticut 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.
 
On March 23, 2011, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke 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:  Falcon Properties LLC (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 264 Amity Road, Suite 208, Woodbridge, Connecticut, 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.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order Imposing Fine Issued
 
On March 31, 2011, the Banking Commissioner entered an Order Imposing Fine against Cynergy Advance Services, LLC of 1128 Royal Palm Beach Boulevard, Suite 145, Royal Palm Beach, Florida.  The respondent also maintains or has maintained offices at 745 Main Street, Newington, Connecticut and 615 West Johnson Avenue, Suite 202, Cheshire, Connecticut.  The Order Imposing Fine had been preceded by a January 19, 2011 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that, in 2008, co-respondent Shelly A. Richard, acting on behalf of Cynergy Advance Services, LLC, sold unregistered securities of Cynergy Advance Services, LLC from Connecticut, promising a 10% annual return.  The January 19, 2011 action had also alleged that 1) the respondents failed to pay investors any principal or interest on the securities, and 2) that the respondents did not apprise investors of the investment risks involved or provide information on Cynergy Advance Service, LLC or the company’s ability to meet its obligations in connection with the securities offered.  The January 19, 2011 action further alleged that the respondents’ conduct violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act; and that respondent Richard transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.
 
In fining respondent Cynergy Advance Services, LLC $100,000, the Commissioner found that the company violated Sections 36b-16, 36b-6(b) and 36b-4(a) of the Connecticut Uniform Securities Act.  Respondent Cynergy Advance Services, LLC did not appear or contest the imposition of the fine.
 
Order Imposing Fine Issued

On April 1, 2011, the Banking Commissioner entered an Order Imposing Fine against Shelly A. Richard of 98 Waverly Street, Cheshire, Connecticut; 745 Main Street Newington, Connecticut; and 1128 Royal Palm Beach Boulevard, Suite 145, Royal Palm Beach, Florida.  The Order Imposing Fine had been preceded by a January 19, 2011 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against co-respondents Shelly A. Richard and Cynergy Advance Services, LLC.  The January 19, 2011 action had alleged that in 2008, respondent Richard, acting on behalf of Cynergy Advance Services, LLC, sold unregistered securities of Cynergy Advance Services, LLC from Connecticut, promising a 10%  annual return.  The January 19, 2011 action had also alleged that 1) the respondents failed to pay investors any principal or interest on the securities, and 2) that the respondents did not apprise investors of the investment risks involved or provide information on Cynergy Advance Service, LLC or the company’s ability to meet its obligations in connection with the securities offered.  The action had further alleged that the respondents’ conduct violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act; and that respondent Richard transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.  The Order to Cease and Desist, being uncontested, had become permanent as to respondent Shelly A. Richard on March 23, 2011.
 
In fining respondent Richard $100,000, the Commissioner found that respondent Richard violated Sections 36b-16, 36b-4(a) and 36b-6(a) of the Connecticut Uniform Securities Act.  Shelly A. Richard did not appear or contest the imposition of the fine.
 
       Dated:  Tuesday, April 5, 2011
 
       Howard F. Pitkin
       Banking Commissioner