The Department of Banking News Bulletin
Bulletin # 2472
Week Ending July 8, 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
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.
* 2319 Whitney Avenue
Hamden, CT 06518
Naugatuck Savings Bank
# 500 West Main Street
Meriden, CT 06451
#Bulletin 2471 erroneously listed this branch as 600 West Main Street
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist, Order to Make Restitution and
Notice of Intent to Fine Issued Following Allegations of Fraudulent Note Sales
On June 30, 2011, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing against Julius Blackwelder d/b/a Friend’s Investment Group of 1310 Jeff Davis Drive, Tyler, Texas 75703-5542.
The action alleged that from at least 2001 forward, respondent Blackwelder sold several unregistered promissory notes in violation of the Connecticut Uniform Securities Act, and represented to certain investors that he would manage and invest their funds to achieve a guaranteed return of 20 percent and 25 percent. The action also alleged that respondent Blackwelder engaged in fraudulent, dishonest or unethical practices by failing to disclose to investors that respondent Blackwelder would use investor funds to pay for his personal and household expenses; that investors might lose their entire investment; any risk factors related to the investment; any financial information on respondent Blackwelder; information substantiating how the represented rates of return could be achieved; and information on respondent Blackwelder’s ability to meet his obligations under the notes.
The action directed respondent Blackwelder to cease and desist from regulatory violations and to make restitution of those sums obtained in violation of Sections 36b-4(a) and 36b-4(b) of the Act. Respondent Blackwelder was afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.
Dated: Tuesday, July 12, 2011
Howard F. Pitkin