The Department of Banking News Bulletin
Bulletin # 2463
Week Ending May 6, 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
On April 26, 2011, the Commissioner entered into a Consent Order with The Brachfeld Law Group, A Professional Corporation (“Brachfeld 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 Brachfeld Law Group, during the period of May 2008 through November 2010, acted as a consumer collection agency within this state without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes. As part of the Consent Order, Brachfeld Law Group agreed to pay $7,500 as a civil penalty.
On April 26, 2011, the Commissioner entered into a Consent Order with Nafisa LLC (“Nafisa”). The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged in a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on March 4, 2011, that Nafisa (1) engaged in the business of cashing checks, drafts and money orders for consideration without licensure for a general facility or limited facility, in violation of Section 36a-581(a) of the Connecticut General Statutes; (2) continued to engage in the business of cashing checks, drafts and money orders for consideration with fees in excess of fifty cents without licensure for a general facility or limited facility after Asafak Bhura, a member of Nafisa, stated on behalf of Nafisa that if it continued such activity, it would charge fifty cents or less, in further violation of Section 36a-581(a) of the Connecticut General Statutes; and (3) charged a fee in excess of two percent for cashing money orders, in violation of Section 36a-585 of the Connecticut General Statutes and Section 36a-585-1(a) of the Regulations of Connecticut State Agencies.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
On May 5, 2011, the Banking Commissioner entered a Consent Order with respect to Charles Morgan Securities, Inc., a Connecticut-registered broker-dealer located at 120 Wall Street, 16th Floor, New York, New York. The Consent Order alleged that the firm violated a June 12, 2007 Consent Order Conditioning Registration as a Broker-dealer by selling a Rule 506 private placement absent compliance with state filing requirements. The conduct, which allegedly violated Section 36b-16 of the Connecticut Uniform Securities Act, occurred between October 2008 and March 2010. The Consent Order also alleged that the firm failed to establish, enforce and maintain a system for supervising the activities of its agents that was reasonably designed to achieve compliance with securities laws and regulations.
The Consent Order directed the firm to cease and desist from regulatory violations and to pay a $15,000 fine to the department. In addition, the Consent Order required that the firm reimburse the agency up to $3,500 to cover the costs associated with one or more examinations of the firm’s offices to be conducted within 24 months.
Dated: Tuesday, May 10, 2011
Howard F. Pitkin