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.
Essex Savings Bank
203 Middlesex Avenue
Chester, CT 06412
On November 5, 2012, the Banking Commissioner issued a Consent Order with respect to Connie Hernandez. The Consent Order alleged that Connie Hernandez, who was an employee of Darien Rowayton Bank, was charged in an information with, and pled guilty to, one count of larceny in the first degree, a crime that is punishable with imprisonment for a term exceeding one year. The Consent Order prohibited Connie Hernandez 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.
De Novo Office Application
On November 27, 2012, Sentinel Trust Company, a New Hampshire de novo non-depository trust company in organization, filed an application, pursuant to Section 36a-434a of the Connecticut General Statutes, to establish an office at 1 New Haven Avenue, Suite 102B, Milford, Connecticut to engage solely in fiduciary activities.
STATE CREDIT UNION ACTIVITY
Connex Credit Union
620 West Main Street
Branford, CT 06405
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Conditioning Registration as an Agent and
Imposing Interim Suspension Issued
On November 13, 2012, the Banking Commissioner issued a Consent Order conditioning the registration of William F. Wadsworth, Sr. (“Wadsworth, Sr.”) as a broker-dealer agent of Wadsworth Investment Co., Inc. (CRD No. 5844) and imposing an interim registration suspension. Wadsworth, Sr. had been registered as a broker-dealer agent in Connecticut from approximately January 1, 1986 to February 7, 2012 when, following an administrative hearing, the Commissioner entered Findings of Fact, Conclusions of Law and an Order revoking that registration (In the Matter of Wadsworth Investment Co., Inc. et al., Docket No. CFNR-10-7779-S). On April 10, 2012, the Commissioner entered an Order Modifying Remedial Restrictions and Conditions with respect to Wadsworth, Sr. Among other things, that order provided that Wadsworth, Sr. would not be precluded from reapplying for agent registration in Connecticut, subject to the Commissioner’s authority to restrict or condition the registration, impose an interim suspension and/or require heightened supervision.
Wadsworth, Sr. reapplied for registration as a broker-dealer agent of Wadsworth Investment Co., Inc. on June 18, 2012.
The Consent Order provided that Wadsworth, Sr.’s broker-dealer agent registration would be made effective on June 18, 2012, but that it would be immediately suspended for 120 days. Once the suspension expired, the agent registration would be reinstated if both Wadsworth, Sr. and his employing firm filed a written Affidavit attesting that, during the suspension period, Wadsworth, Sr. had not transacted business as a broker-dealer agent or in any other capacity requiring registration. The Consent Order also required that, for a two year period, 1) Wadsworth Investment Co., Inc. would implement heightened supervisory controls with respect to Wadsworth, Sr.; 2) Wadsworth, Sr. would be limited to servicing accounts of those Wadsworth Investment Co., Inc. clients with whom he maintained a broker-dealer agent relationship prior to February 7, 2012; and 3) Wadsworth, Sr. would not sell or promote any private placements of securities or any securities that were not listed on a United State exchange or issued by an investment company.
Order Imposing Fine Issued;
Order to Cease and Desist Made Permanent
On November 30, 2012, following a hearing, the Banking Commissioner entered an Order to Cease and Desist and Order Imposing Fine (Docket No. CF-12-7891-S) against Eric Olojugba a/k/a Olufemi Olojugba a/k/a Eric Oluwarotimi Olojugba, a previously registered broker-dealer agent and investment adviser agent in Connecticut. Since the respondent did not appear at the hearing, the orders were entered by default. The November 30, 2012 action had been preceded by a May 3, 2012 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-12-7891-S) alleging that, in contravention of Section 36b-31-14e(a) of the Regulations under the Connecticut Uniform Securities Act, the respondent failed to update his Form U-4 (Uniform Application for Securities Industry Registration or Transfer) filings to reflect his current residential address and his outside business activities with CRG Partners and Discoverpoint Holdings (Group) LLC.
Adopting the factual findings and conclusions of law set forth in the May 3, 2012 Order to Cease and Desist and Notice of Intent to Fine, the Commissioner fined the respondent $25,000 after concluding that the respondent violated Section 36b-31-14e(a) of the Regulations. The Commissioner also rendered the May 3, 2012 Order to Cease and Desist permanent as of November 30, 2012.
CONSUMER CREDIT DIVISION ACTIVITY
On October 31, 2012, the Commissioner entered into a Consent Order with Ace’s Smoke and Cell Shop LLC d/b/a Ace’s Check Cashing (“Ace’s Smoke and Cell Shop”), Hartford, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on August 31, 2012, the Commissioner issued a Notice of Intent to Refuse to Renew Check Cashing Service Licenses and Notice of Right to Hearing issued against Ace’s Smoke and Cell Shop. The Commissioner alleged that Ace’s Smoke and Cell Shop failed to submit its financial statements, in violation of Section 36a-588-4 of the Regulations of Connecticut State Agencies. As part of the Consent Order, Ace’s Smoke and Cell Shop was ordered to pay $3,000 as a civil penalty, and to timely and accurately file all required financial statements and other information required by Part IV of Chapter 668 of the Connecticut General Statutes and the Regulations of Connecticut State Agencies.
On November 1, 2012, the Commissioner entered into a Consent Order with Reliant Account Management, LLC (“Reliant”), Lake Forest, California. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Reliant engaged in the business of money transmission in Connecticut without a license, in violation of Section 36a-597(a) of the Connecticut General Statutes. As part of the Consent Order, Reliant was ordered to pay $2,500 as a civil penalty, to cease and desist from engaging in the future in the business of money transmission in Connecticut without a license, and to refund all fees paid to Reliant by Connecticut residents for money transmission services.
Dated: Tuesday, December 4, 2012
Howard F. Pitkin