The Department of Banking News Bulletin
Bulletin # 2461
Week Ending April 22, 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.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
The Pawn Palace LLC
d/b/a Pawn Paradise LLC
1194 Dixwell Avenue
Hamden, CT 06514
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Securities Activity Restrictions Imposed
On April 19, 2011, the Banking Commissioner entered a Consent Order with respect to Aviv Michael Hen, a registered broker-dealer agent of J.H. Darbie & Co., Inc. Aviv Hen was previously registered as a broker-dealer agent of Andrew Garrett Inc. in Connecticut. The Consent Order alleged that, from at least January 2009 and while employed as a broker-dealer agent of Andrew Garrett Inc., Aviv Hen engaged in dishonest or unethical practices in the securities business within the meaning of Sections 36b-15(a)(2)(H) and 36b-4(b) of the Connecticut Uniform Securities Act. Specifically, Aviv Hen allegedly failed to fulfill the requirements in NASD Rule 2510(d) by executing transactions for a Connecticut client utilizing time and price discretion that had been granted to him a day or several days prior to the execution of the transactions.
The Consent Order prohibited Aviv Hen for three years from 1) effecting Connecticut sales, except for liquidating sales, of securities trading on the NASDAQ Bulletin Board or listed for quotation on the Pink Sheets; 2) opening new Connecticut accounts approved for options trading unless the Connecticut customer was an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933; 3) opening new Connecticut margin accounts unless the Connecticut customer was an “accredited investor” as defined in Rule 501(a) of Regulation D; and 4) opening or maintaining any discretionary accounts for Connecticut clients.
Notice of Intent to Deny Registration as an Agent Issued
On April 20, 2011, the Banking Commissioner issued a Notice of Intent to Deny Registration as an Agent and Notice of Right to Hearing against Phil Eckstein of Wilton, Connecticut. Respondent Eckstein had sought registration as a broker-dealer agent of Park Avenue Securities LLC. Although that application was withdrawn, Connecticut law permits the Commissioner to initiate denial proceedings within one year after a withdrawal becomes effective.
The action alleged that respondent Eckstein had been the subject of a February 8, 2011 Complaint, Stipulation and Final Order by the State of Connecticut Insurance Department. The February 8, 2011 action superseded an earlier Insurance Department Order dated July 26, 2010. The Insurance Department action fined respondent Eckstein $8,000 and placed his insurance licenses on a probationary status for one year following allegations that 1) respondent Eckstein sold a non-existent annuity to a customer; and 2) an investigation by respondent Eckstein’s former employer concluded that the respondent deposited the customer’s funds into respondent Eckstein’s own bank account rather than applying them to an annuity purchase. Under the Connecticut Uniform Securities Act, a sanction issued by a state financial services regulator based upon nonsecurities violations of state law under which a business involving insurance is regulated would support proceedings to deny a broker-dealer agent registration.
Respondent Eckstein was afforded an opportunity to request a hearing on the Notice of Intent to Deny Registration as an Agent.
Dated: Tuesday, April 26, 2011
Howard F. Pitkin