DOB: Bulletin 2608 - February 14, 2014

The Department of Banking News Bulletin 

Bulletin # 2608
Week Ending February 14, 2014

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
Amended and Restated Order to Cease and Desist and Notice of Intent to Fine Issued
 
On February 10, 2014, the Banking Commissioner issued an Amended and Restated Order to Cease and Desist and Amended and Restated Notice of Intent to Fine (Docket No. CF-13-8022-S) against Euro Group of Companies, Inc. (“Euro Group”), now or formerly of New Haven, Connecticut, and Vasilios Koutsobinas, Chairman of Euro Group.  The Amended and Restated Order to Cease and Desist and Notice of Intent to Fine revised an October 23, 2013 Order to Cease and Desist and Notice of Intent to Fine which only named Euro Group as a respondent.
 
As amended, the action alleged that Euro Group, with the material assistance of respondent Koutsobinas, violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered nonexempt securities, and that Euro violated Section 36b-6(b) of the Act by employing one Christos Christoforou as an unregistered agent of issuer.  In addition, the action alleged that Euro Group and respondent Koutsoubinas violated the antifraud provisions of the Act by 1) failing to disclose to affected investors, none of whom was a control person of Euro Group, that the investors could have purchased Euro Group shares in the open market for significantly less than what they paid in the issuer transactions; and 2) failing to provide investors with an offering document that disclosed the risks associated with purchasing Euro Group securities.  The action also alleged that public shares of Euro Group (OTC Bulletin Board symbol:  EGCO) were essentially low priced and thinly traded penny stocks.
 
The respondents were afforded an opportunity to request a hearing on the Amended and Restated Order to Cease and Desist and Amended and Restated Notice of Intent to Fine.
 
Order to Cease and Desist, Notice of Intent to Revoke Registration as a Broker-dealer
and as a Broker-dealer Agent and Notice of Intent to Fine Issued
 
On February 10, 2014, the Banking Commissioner issued an Order to Cease and Desist and Notice of Intent to Fine (Docket No. CFNR-14-8132-S) against Meyers Associates, L.P., a Connecticut-registered broker-dealer located in New York, New York, and Bruce Meyers, Chief Executive Officer of the firm.  The action also sought to revoke the firm’s registration as a broker-dealer and to revoke the agent registration of Bruce Meyers.  Meyers Associates, L.P. had been the subject of a November 23, 2010 Order to Cease and Desist, Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Intent to Fine (Docket No. RCF-10-7817-S) which was resolved via a June 14, 2011 Consent Order.
 
The instant action alleged that 1) both the firm and Bruce Meyers failed to discharge their supervisory responsibilities; 2) the firm violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities; 3) the firm, with the material assistance of Bruce Meyers, violated Section 36b-14(d) of the Act and Section 36b-31-14f of the Regulations thereunder by failing to make required books and records available to the Commissioner; 4) the firm engaged in dishonest or unethical practices in the securities business; and 5) prior sanctions entered by FINRA against the firm and Bruce Meyers provided additional grounds for the Connecticut revocation action.
 
Each of the respondents was afforded an opportunity to request a hearing on the Order to Cease and Desist, Notice of Intent to Revoke Registration as a Broker-dealer, Notice of Intent to Revoke Registration as a Broker-dealer Agent and Notice of Intent to Fine.
 
 

        Dated:  Wednesday, February 19, 2014

 
       Howard F. Pitkin
       Banking Commissioner