The Department of Banking News Bulletin
Bulletin # 2620
Week Ending May 9, 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.
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.
31 Main Street
East Hartford, CT 06118
CREDIT UNION ACTIVITY
Sikorsky Financial Credit Union
Ansonia High School
20 Pulaski Highway
Ansonia, CT 06401
Bulletin #2618 for the week ending April 25, 2014 incorrectly indicated under the “State Bank Activity – Branch Activity” heading that Signature Bank filed a branch application on April 21, 2014. However, Signature Bank is not a Connecticut bank and filing of the application was not complete on April 21, 2014.
Interstate De Novo Branch
On May 7, 2014, pursuant to Sections 36a-412(a)(2) and 36a-145(b)(1) of the Connecticut General Statutes, Signature Bank, a New York-chartered bank and trust company with its main office located in New York, New York, filed an application to establish a de novo branch at 75 Holly Hill Lane, Greenwich, Connecticut.
CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist and Order Imposing Civil Penalty
On April 28, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against American Liberty Loan Consultants Inc. a/k/a American Liberty Loan Consultants Corp. d/b/a American Liberty Loan (“Respondent”), Costa Mesa, California. The Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, 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 against Respondent. The basis of the Order was 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. The Order required that Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and imposed a civil penalty in the amount of $100,000. In addition, the Order to Make Restitution previously issued remains in effect and became permanent on December 25, 2013.
Notice of Intent to Issue Order to Cease and Desist and
Notice of Intent to Impose Civil Penalty
On April 28, 2014, 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 (“Notice”) in the Matter of: Chrysalis Funding of Connecticut, LLC (NMLS # 1253) (“Respondent”), Branford, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
Order Accepting Surrender
On April 30, 2014, the Commissioner, acting pursuant to Section 36a-51(c) of the Connecticut General Statutes, issued an Order Accepting Surrender (“Order”) of the license of Pellettieri Group, LLC, Naperville, Illinois, to act as a consumer collection agency in Connecticut from 1717 Park Street, Suite 105, Naperville, Illinois. The Order was issued following the issuance by the Commissioner of a Notice of Intent to Revoke and Refuse to Renew Consumer Collection License and Notice of Right to Hearing issued on March 20, 2014. As part of the Order, the Commissioner accepted the surrender of the license effective as of April 30, 2014, and imposed no additional terms and conditions.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist and Notice of Intent to Fine Issued
On May 8, 2014, the Banking Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-14-8080-S) against Orion Capital LLC of 1297 Main Street, Watertown, Connecticut and Herman Wayne Gibson, the firm’s control person. The action stated that Orion Capital, LLC had been created to process conventional loans for Pegasus Investment Group, LLC, a mortgage broker controlled by Gibson and previously licensed by the department. According to the action, from at least September 20, 2009 forward, the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered notes issued by Orion Capital, LLC. The action also alleged that 1) respondent Gibson allocated note holder monies to his personal use; and 2) in connection with the note sales, the respondents violated Section 36b-4(a) of the Act by failing to make key disclosures concerning their financial condition, the registration status of the securities, the risk factors involved and that Gibson would use a significant part of the investors’ money for his personal use. The action also alleged that respondent Gibson transacted business as an unregistered agent of issuer in violation of Section 36b-6(a) of the Act, and that Gibson violated Section 36b-23 of the Act by making materially false or misleading statements to the Division regarding monies he deposited into Monarch Funding, LLC, another entity he controlled.
The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.
Dated: Tuesday, May 13, 2014
Howard F. Pitkin