DOB: Bulletin 2474 - July 22, 2011

The Department of Banking News Bulletin 

Bulletin # 2474
Week Ending July 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.


 
Response to Petition for Declaratory Ruling
 
On July 19, 2011, the Commissioner decided not to issue a declaratory ruling as requested by Bay View Law Group, P.C., on July 15, 2011, because the issues raised in the request can be adequately addressed in the hearing currently scheduled on the 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 Bay View.
 
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
07/18/11
Rockville Bank
Rockville
FROM:  1302 Hartford Turnpike
           Vernon, CT  06066
TO:      20 Hyde Avenue
           Vernon, CT  06066
filed to
relocate
10/29/11
Northwest Community Bank
Winsted
654 Main Street
Winsted, CT  06098
closing
date
 
Consent Order
 
On July 20, 2011, the Banking Commissioner issued a Consent Order with respect to Philip Mongillo.  The Consent Order alleged that Philip Mongillo was charged in an information with, and pled guilty to, one count of embezzlement and willfully misapplying the moneys and funds of Dime Bank, a crime that is punishable with imprisonment for a term exceeding one year.  The Consent Order prohibited Philip Mongillo from holding any position with any bank, Connecticut credit union or federal credit union, as defined in Section 36a-2 of the Connecticut General Statues, or with a holding company that holds a subsidiary that is a bank, as defined in Section 36a-2; or as licensee or registrant under Titles 36a or 36b of the Connecticut General Statutes, while the Consent Order is in effect, without the consent of the Commissioner.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Orders
 
On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to Daniel Dvorznak, a registered broker-dealer agent of A&F Financial Securities, Inc.  The Consent Order alleged that, in violation of Section 36b-23 of the Connecticut Uniform Securities Act, Daniel Dvorznak caused certain documents that were materially false or misleading to be filed with the Commissioner.  The Consent Order censured Daniel Dvorznak and directed him to cease and desist from regulatory violations.
 
On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to Nicholas George Tsikitas, a registered broker-dealer agent of A&F Financial Securities, Inc.  The Consent Order alleged that, in violation of Section 36b-23 of the Connecticut Uniform Securities Act, Nicholas Tsikitas caused certain documents that were materially false or misleading to be filed with the Commissioner.  The Consent Order censured Nicholas Tsikitas and directed him to cease and desist from regulatory violations.
 
On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to A&F Financial Securities, Inc., a registered broker-dealer located at 6901 Jericho Turnpike, Suite 217, Syosset, New York.  The Consent Order alleged that the firm engaged in dishonest and unethical practices by failing to disclose to Connecticut customers that transactional “Postage and Handling Charges” charged to those customers included a profit to the firm, and that the fee was not based on the costs of handling a particular transaction.  The Consent Order fined the firm $20,000 and directed that it cease and desist from regulatory violations.  In addition, the Consent Order required that the firm reimburse affected Connecticut customers the difference between the “Postage and Handling Charges” they paid for each transaction and the actual amount of the firm’s ticket and clearing charge and the postage fee assessed by the firm’s clearing broker.
 
CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist, Order of Repayment of Fees
and Order Imposing Civil Penalty
 
On June 27, 2011, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of:  American Mortgage Auditors, Inc. (“Respondent”).  The basis of the Order was the Respondent offered to engage and engaged in debt negotiation in this state without obtaining the required license, in violation of 36a-671(b) of the Connecticut General Statutes, and collected fees which did not comply with Section 36a-671b(b) of the Connecticut General Statutes and the schedule of maximum fees established by the Commissioner.  Respondent was ordered to cease and desist from violating Sections 36a 671(b) and 36a-671b(b) of the Connecticut General Statutes, to pay a civil penalty in the amount of $30,000, and to repay fees in the amount of $5,800 to a Connecticut resident.
 
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 June 29, 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:  Strategic Recovery Systems, Inc (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 421 North 7th Street, Suite 701, Philadelphia, Pennsylvania, in violation of Section 36a 802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a 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.
 
 
       Dated:  Tuesday, July 26, 2011
 
       Howard F. Pitkin
       Banking Commissioner