DOB: Bulletin 2464 - May 13, 2011

The Department of Banking News Bulletin 

Bulletin # 2464
Week Ending May 13, 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.


 
CREDIT UNION ACTIVITY
Merger
 
On May 4, 2011, pursuant to Section 36a-468a of the Connecticut General Statutes, Northwest Hills Credit Union, Inc., Torrington, Connecticut, and C.H.H. Credit Union, Inc., Torrington, Connecticut, both Connecticut credit unions, filed an application for the merger of C.H.H. Credit Union, Inc., with and into Northwest Hills Credit Union, Inc.
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Notice of Intent to Revoke Agent Registration Issued

On May 11, 2011, the Banking Commissioner issued a Notice of Intent to Revoke Registration as an Agent and Notice of Right to Hearing with respect to Gregory James Buchholz, a former broker-dealer agent of Raymond James Financial Services, Inc.  Although the Respondent’s agent registration had been withdrawn, Connecticut law permits the Commissioner to initiate revocation proceedings within one year after a withdrawal becomes effective.  The Notice of Intent to Revoke Registration as an Agent alleged that 1) on November 12, 2010, the Respondent pled guilty to a single-count information for felony wire fraud in violation of 18 U.S.C. §1343 (United States of America v. Gregory Buchholz, D. Conn., Case No. 3:10-CR-229 (JCH)); and 2) on January 31, 2011, the Respondent was sentenced to 48 months in prison, followed by three years of supervised release, and ordered to pay over $1.7 million in restitution to Raymond James Financial Services, Inc.   According to the action, the felony conviction would support the revocation of the Respondent’s agent registration in Connecticut.  Gregory James Buchholz was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as an Agent.

 
CONSUMER CREDIT DIVISION ACTIVITY
Consent Orders
 
On April 27, 2011, the Commissioner entered into a Consent Order with Lyme Mortgage Services LLC (“Lyme Mortgage”).  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Lyme Mortgage employed or retained, during the period of February 23 to August 13, 2009, one (1) individual as a mortgage loan originator who was not licensed, in violation of Section 36a-486(b) of the Connecticut General Statutes.  As part of the Consent Order, Lyme Mortgage agreed to pay $1,000 as a civil penalty.
 
On May 3, 2011, the Commissioner entered into a Consent Order with University Mortgage LLC (“University Mortgage”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that, as of July 31, 2010, University Mortgage filed a new form of surety bond which was not in an appropriate amount, in violation of Section 36a-492 of the Connecticut General Statutes.  As part of the Consent Order, University Mortgage agreed to pay $500 as a civil penalty.
 
On May 9, 2011, the Commissioner entered into a Consent Order with Pegasus Investment Group, LLC d/b/a Pegasus Mortgage (“Pegasus Mortgage”).  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Pegasus Mortgage employed or retained, during the period of January 8, 2009 through August 2, 2010, fourteen (14) individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the Connecticut General Statutes.  As part of the Consent Order, Pegasus Mortgage agreed to pay $14,000 as a civil penalty.
 
 
       Dated:  Tuesday, May 17, 2011
 
       Howard F. Pitkin
       Banking Commissioner