DOB: Bulletin 2599 - December 13, 2013

The Department of Banking News Bulletin 

Bulletin # 2599
Week Ending December 13, 2013

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
Consent Order Entered
 
On December 13, 2013, the Banking Commissioner entered a Consent Order informally resolving allegations contained in a July 25, 2013 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-13-883-B) against Fundraising Co-Op, Inc. and Buyer Topia, Inc., both of Warminster, Pennsylvania; Nicholas C. Burkholder, an executive officer of respondents Fundraising Co-Op, Inc. and Buyer Topia, Inc.; Duncan H. Graham, the Executive Director of Fundraising Co-Op, Inc. and the Director of Development for Buyer Topia, Inc.; and John Weber, Treasurer of Fundraising Co-Op, Inc. Each of the respondents signed the Consent Order.  The administrative action had alleged that the respondents violated the Connecticut Business Opportunity Investment Act by offering and selling unregistered business opportunities; making unsubstantiated earnings claims; and engaging in fraudulent conduct in violation of Section 36b-67(6) of the Act, and that respondent Fundraising Co-Op, Inc. violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered interests in a cooperative.
 
The Consent Order required that Fundraising Co-Op, Inc. and Buyer Topia, Inc. extend a rescission offer to affected Connecticut purchaser-investors and repay by January 31, 2014 those purchaser-investors accepting the offer.  The Consent Order also fined respondents Fundraising Co-Op, Inc. and Buyer Topia, Inc. $7,500, jointly and severally, and directed all respondents to cease and desist from regulatory violations.
 

CONSUMER CREDIT DIVISION ACTIVITY
Consent Order
 
On December 2, 2013, the Commissioner entered into a Consent Order with Todd Haggerty, NMLS # 171598 (“Haggerty”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on July 10, 2013, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Haggerty, among others.  The Commissioner alleged that Haggerty offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011.  As part of the Consent Order, Haggerty agreed to cease and desist from engaging or offering to engage in debt negotiation in this state without the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, and to repay all fees paid by a Connecticut resident to Integrity Modification Co. d/b/a Integrity Mortgage Modification for debt negotiation services.
 

Order to Make Restitution, Notice of Intent to Issue Order to
Cease and Desist and Notice of Intent to Impose Civil Penalty
 
On December 2, 2013, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  American Liberty Loan Consultants Inc. a/k/a American Liberty Loan Consultants Corp. d/b/a American Liberty Loan (“Respondent”), Costa Mesa, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged and offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to identified Connecticut residents in amounts identified plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondent plus interest.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
 
 

        Dated:  Tuesday, December 17, 2013

 
 
       Howard F. Pitkin
       Banking Commissioner