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.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Westport Investment adviser Assessed $2,500
for Engaging Unregistered Investment Adviser Agents
On March 26, 2013, the Banking Commissioner entered a Consent Order (No. CO-13-8073-S) with respect to Vista Investment Advisors LLC, a registered investment adviser located in Westport, Connecticut. The Consent Order alleged that, at various specified times between April 2004 and December 2012, both the firm’s Chief Investment Officer and its Chief Compliance Officer transacted business as investment adviser agents of the firm without being registered. The Consent Order also alleged that the firm, by engaging unregistered investment adviser agents, violated Section 36b-6(c)(3) of the Connecticut Uniform Securities Act.
In resolution of the matter, the firm agreed to refrain from violative conduct and to pay $2,500 to the agency. Of that amount, $1,500 constituted an administrative fine and $1,000 would be applied to reimburse the department for past due registration fees.
CONSUMER CREDIT DIVISION ACTIVITY
On March 14, 2013, the Commissioner entered into a Consent Order with Jensen Legal Group, PLLC (“Jensen Legal Group”), Frisco, Texas. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on May 13, 2011, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Jensen Legal Group. The Commissioner alleged that Jensen Legal Group engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, and collected fees under terms which did not comply with Section 36a-671b(b) of the Connecticut General Statutes. As part of the Consent Order, Jensen Legal Group shall cease and desist from violating Sections 36a-671(b) and 36a-671b(b) of the Connecticut General Statutes and repay identified fees to identified Connecticut residents and paid $7,500 as a civil penalty.
On March 14, 2013, the Commissioner entered into a Consent Order with Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services, LLC (NMLS # 142998) (“Generation2 Mortgage”), South Windsor, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on December 11, 2012, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Generation2 Mortgage. The Commissioner alleged that Generation2 Mortgage failed to file certain quarterly information required by standard mortgage call reports in violation of Section 36a 534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3), as amended by Public Act 12-96. As part of the Consent Order, Generation2 Mortgage paid $1,000 as a civil penalty.
On March 20, 2013, the Commissioner entered into a Consent Order with PHH Mortgage Corporation d/b/a Century 21 Mortgage d/b/a Coldwell Banker Mortgage d/b/a Domain Distinctive Property Finance d/b/a ERA Mortgage d/b/a Instamortgage.com d/b/a PHH Mortgage Services (NMLS # 2726) (“PHH Mortgage”), Mt. Laurel, New Jersey. The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that PHH Mortgage employed or retained, during the period of July 21, 2008 through June 16, 2010, 24 individuals as mortgage loan originators who were not licensed, in violation of Section 36a-486(b) of the Connecticut General Statutes. As part of the Consent Order, PHH Mortgage paid $29,000 as a civil penalty.
Dated: Tuesday, April 2, 2013
Howard F. Pitkin